Airport slot company gets lucrative new deal

Adrienne Packer

Wednesday, Aug. 4, 1999 | 11:33 a.m.

A slot machine concessionaire with ties to Coast Resorts Inc. hit the jackpot Tuesday when Clark County agreed to extend its airport contract three years and lift a cap on the number of slot machines allowed in the terminal.

Airport Slot Concession Inc., owned by Coast Resorts controlling shareholder Michael Gaughan, was granted the extension two years before its existing contract expires.

Clark County Aviation Director Randy Walker told commissioners Tuesday that the cap should be lifted to allow more machines in the newest wing, the D-gates terminal. It will take five years for the new machines to appreciate enough to allow the concessionaire to recoup the cost and make a profit, he said.

"In the best interest of the airport, we need to extend the contract and get more machines," said Walker, who promised the devices wouldn't be placed in areas that would block the paths of visitors.

More machines translates into more money for the county, Walker said.

The slot contract is by far the most lucrative to the airport, which takes 75 percent of the concessionaire's gross revenue. Last year, the slots earned $20 million and revenues are already up more than 7 percent this year, Walker said.

The revenue is used to make airport improvements that range from land acquistion to runway construction, said Debbie Millett, spokeswoman for the airport. She said all of the money is used at the airport.

With the extension granted Tuesday, Slot Concession Inc. will have owned the contract for 20 years by the time it expires in 2004.

Walker admitted that if requests for proposals were issued, the county might be able to wrangle a deal that would bring it 80 percent of slot machine revenues. He quickly added, however, that there is no guarantee.

The county's immediate goal is to fill vast open space in the D-gates terminal with machines. Walker said the concessionaire had to remove machines from the new wing because it had exceeded the 1,200 limit by 50 machines.

"When we don't need additional machines, we can stop and do something like that," Walker said, referring to opening up the bid.

Commissioner Erin Kenny, who made the motion to approve the extension and remove the slot machine cap, emphasized that the county benefits greatly from the contract extension because its revenue will undoubtedly increase.

"I think lifting the cap is good," she said. "Machines can be put in locations that will net more revenue."

Commissioner Yvonne Atkinson Gates, who joked that nobody ever won jackpots on airport machines, was concerned that terminals might be overloaded with slot machines.

Walker, who quickly defended visitors' success on the machines by pointing out that a gambler won $687,000 playing "Wheel of Fortune" just last week, said machines that are not popular are promptly removed.

Atkinson Gates also asked why the contract needed to be extended if the cap was lifted. She said with unlimited machines, the company should be able to balance its expenditures and revenues to recoup the cost of the machines.

Gaughan was unavailable for comment and it is unclear whether he approached the airport in search of a contract extension or whether the action was initiated by the county.

Coast Resorts is a significant contributor to campaigns across the valley. Last November, the hotel-casino chain gave $10,000 to commission incumbents Kenny and Myrna Williams. It contributed the same amount to newcomer Dario Herrera.