Controversial Tahoe casino interest transfer approved

Tuesday, Dec. 9, 1997 | 5:48 a.m.

The state Gaming Control Board recommended approval of the transaction between Cal-Neva owner Charles Bluth and a longtime business partner, Dr. Raymond Ponce of Huntington Beach, Calif.

The board's parent Gaming Commission will have final say at a Dec. 18 meeting.

Bluth was fined $5,000 in August because $500,000 went to Ponce, in what Bluth described as a loan, before regulators could review the deal. The fine was reduced from a proposed $10,000.

Bluth conceded the money went to Ponce before a GCB review and he realized that was a violation. But he added a transfer of Ponce's 5 percent interest in the Cal-Neva didn't occur prior to a state review. Had the actual transfer occurred, that also would have been a violation.

Bluth took over the Cal-Neva, once owned by Frank Sinatra, 12 years ago. He has spent millions of dollars renovating and upgrading the property.

In other action, the board endorsed a proposed $150 million public offering by Hollywood Park Inc. to replace financing for its initial merger with the Boomtown hotel-casino on Interstate 80 west of Reno.

In discussing the deal, regulators were told that Hollywood Park is buying out an interest held by Eddie DeBartolo's family in one of its California cardrooms.

DeBartolo just resigned as San Francisco 49ers chairman after published reports said he faced possible indictment in connection with a riverboat gambling license awarded in March to a group including his DeBartolo Entertainment corporation.

DeBartolo has reportedly lost millions on attempts to expand his family's holdings from its traditional racetracks to cardrooms and casinos.

DeBartolo's quest to expand his corporate empire triggered concern in the upper ranks of the National Football League. The NFL forbids team owners from operating casinos that allow betting on sporting events.