Tuesday, April 28, 1998 | 10:05 a.m.
The Nevada Gaming Commission Monday issued a formal order revoking Ted Binion's license as a co-owner of the Horseshoe Club because of ties to the late underworld figure Herbie Blitzstein.
Binion, the son of legendary Horseshoe founder Benny Binion, now has 10 days to sell his 20 percent interest in the downtown hotel-casino to other family members.
Two of those members, his brother Jack Binion and sister Becky Behnen, are locked in a bitter court fight over control of the Horseshoe.
Behnen recently asked District Judge Nancy Becker to appoint former Howard Hughes confidante Robert Maheu as an independent receiver to run the Horseshoe until the legal battle is over.
Behnen, who has been trying to buy Jack Binion's 42 percent interest, has alleged her brother is steering the longtime casino toward "financial ruin" while focusing on his lucrative gaming operations in Louisiana and Mississippi.
In its five-page revocation order, the Gaming Commission found that Binion had acknowledged a social and business relationship with Blitzstein, once a top lieutenant of the late Chicago mobster Anthony Spilotro.
Blitzstein was murdered on Jan. 6 1997, one month after the State Gaming Control Board nominated him for Nevada's Black Book of undesirables banned from casinos. His slaying was related to a bid by Los Angeles and Buffalo crime families to take over Las Vegas street rackets, once the sole domain of the Chicago mob.
The Gaming Commission said Binion's relationship with Blitzstein and several of his associates brought discredit to Nevada and its gaming industry.
Binion, the commission found, cemented his relationship with Blitzstein in 1994 and maintained it through November 1996, knowing all along that Blitzstein had an unsavory reputation.
The friendship was cultivated while Binion's license was suspended because of a drug problem.
During a series of hearings, Binion had admitted under oath that he allowed Blitzstein into his home on 7-10 occasions and went to dinner with him at least four times, the order said.
Binion also acknowledged hanging out with Blitzstein a half-dozen times at adult nightclubs, the order said.
Blitzstein, the order said, introduced Binion to the contractor who remodeled Binion's home and recommended a lawn service to Binion.
The owner of the lawn service turned out to be John Branco, a longtime underworld figure who later became a government informant in the FBI racketeering probe that ensnared Blitzstein's killers.
Binion also acknowledged that he entered into business dealings with Joe DeLuca, who co-owned an auto repair shop with Blitzstein. The repair shop, Any Auto, worked on Binion's cars.
DeLuca, though not charged in Blitzstein's murder, was among those indicted in the massive racketeering investigation. He later pleaded guilty and agreed to become a government witness.
The commission's order also found that Binion had paved the way for Blitzstein to cash $11,500 worth of auto insurance checks at the Horseshoe on New Year's Day 1995.
Binion's lawyers have vowed to go to District Court to overturn the order.
archive
