Casinos ask guv for help

Thursday, Jan. 29, 1998 | 10:45 a.m.

First published on Feb. 2, 1993.

Nevada casino operators are pressuring Gov. Bob Miller to intervene in the State Gaming Control Board's cash-reporting investigation of the strikeridden Frontier Hotel.

Miller confirmed Monday that he met with 3540 casino operators at the Boyd Group's headquarters in Las Vegas over the weekend to hear their concerns about the Control Board's probe, which resulted in the filing of a complaint against the Frontier last October.

The gaming executives, Miller said, were worried that a 14-minute tape circulated nationwide by the striking Culinary Union was influencing the board's investigation, which has uncovered more than $550,000 in alleged cash -reporting violations at the Frontier.

The tape, entitled "Abuse of Privilege, Law breaking at the Frontier," urges the Control Board to seek tough sanctions against the Strip resort.

"They just wanted to make me aware of the situation," Miller said. "I made it very clear to them that I will not suggest to the board what they should do or how they should handle this matter."

But the governor added he agreed to "sit down" with Control Board members later this week, ask them whether any outside influences were affecting the outcome of the Frontier probe, and then report back to the casino operators.

Miller said the gamers were concerned that the Frontier case was setting a bad precedent for future cashreporting investigations.

Among those attending the meeting: Bill Boyd of the Boyd Group, Jack Binion of the Horseshoe Club, Michael Gaughan of the Barbary Coast, Bobby Baldwin of the Mirage and Bob Maxey of the MGM Grand Hotel. They are some of the governor's biggest campaign supporters.

Miller received heavy campaign contributions from the gaming industry when he ran for office in 1990.

Many at the meeting also were strong enemies of the Culinary Union, which has been locked in a bitter labor dispute with the Frontier for more than a year.

Not invited were representatives of Hilton Nevada, Circus Circus and Caesars Palace, all friendly toward the Culinary Union. The governor said he did not recognize anyone from the Frontier at the meeting.

The Control Board's complaint against the Frontier alleges the hotel violated Nevada Gaming Commission Regulation 6A, a cashreporting procedure adopted in 1985 following sensitive negotiations with the Treasury Department to root out money laundering at casinos.

Though Miller indicated he told the Control Board beforehand of his meeting with the casino executives, Chairman Bill Bible said Monday he new nothing about it.

Bible also denied that the Culinary Union wee influencing the Frontier probe.

"The Frontier has been treated no differently than any other licensee," Bible said from Carson City.

"I think we've been diligent in our monitoring of Regulation 6A. Our efforts have increased over time, as we have expected licensees" knowledge and compliance to have increased since the regulation was fist adopted in 1985."

Several casino operators whoattended the meeting refused comment.

One veteran executive, however, described it as the biggest gathering of industry leaders he had ever seen. Lawyer Michael Leavitt, who did not return a phone call, made a 20-minute presentation to the governor.

The meeting comes amid recent disclosures that 10 Atlantic City casinos were fined a total of $2.5 million by the IRS for cash-reporting violations.

Those violations were said to be less severe than the ones allegedly uncovered at the Frontier.