Regulators OK Paris opening

Thursday, Aug. 5, 1999 | 12:01 p.m.

CARSON CITY -- Plans for the Sept. 1 opening of the 2,914-room Paris-Las Vegas hotel-casino, the latest in the wave of new resorts on the Strip, were approved by the state Gaming Control Board Wednesday.

The $760 million project was built entirely with cash flow and without any debt by Park Place Entertainment Corp. of Las Vegas, the largest gaming company in the world. Paris will operate as an extension of the adjacent Bally's, under common management and employees will have a work card so they can be assigned to either location.

Room rates will average $120 but will fluctuate, depending on the season and the attractions in Las Vegas, said David Zerfing, an officer in Park Place Entertainment. There will be about 2,100 slot machines, 80-90 table games and an estimated 4,000 employees.

By treating Paris as an extension of Bally's, the company will be able to avoid some state fees, a gaming official said. Chairman Steve DuCharme of the Control Board said this is consistent with past cases involving Harrah's and Circus Circus.

Park Place owns the Hiltons in Las Vegas, Reno and Laughlin and has gaming operations in such places as Atlantic City, Louisiana and Mississippi. It's also buying the Caesars World casinos.

David Arrajj, counsel for Park Place, told the Control Board Paris and Bally's will be operated as one facility. But the revenues must be reported separately during the first year to the state.

Zerfing said there hasn't been any adverse reaction from France to the project, which will have a scaled down 500-foot Eiffel Tower and will feature the American debut of the show Notre Dame de Paris in its 1,200-seat theater starting in January. "We have had lots of cooperation from the French government," Zerfing said. "There will be a live video feed from Paris," at the opening.

Advance room reservations at Paris are living up to expectations, Zerfing said, but he declined to say what the projections were.

Paris follows openings of the Bellagio, Mandalay Bay, the Venetian and the Resort at Summerlin. But Zerfing said he did not believe the Las Vegas market is overbuilt.

The final vote on the application will come Aug. 19 at the meeting of the state Gaming Commission in Carson City.

The Control Board also recommended approval for Carl Giudici, owner of four casinos in the Reno-Sparks area, to open the Club Fortune Casino, formerly a bingo parlor in Henderson. The building is at 725 S. Racetrack Road in a residential area off Boulder Highway.

Giudici said he has been looking to expand to Las Vegas for 10 years. His location, planned to open Oct. 1, would have 286 slots and sports betting but no table games. There will be three restaurants and he added, "Food is going to be a big draw for us."

Thomas R. Fuetsch, who will be chief executive officer and general manager at the Club Fortune, was warned by board member Bobby Siller that he must be on his toes in running this casino.

Siller said Fuetsch was a manager at John Ascuaga's Nugget in Sparks, which this summer paid a $250,000 fine to the state for taking almost $2 million in illegal sports bets over six football seasons. Siller said this activity "took place on your watch. I caution you to be more mindful."

Siller said Fuetsch testified during the investigation he was not aware of the illegal betting, which was described as "blatant." Fuetsch now manages the other four casinos for Giudici.

The board recommended approval for former Lt. Gov. Bob Cashell to have a slot machine distributor's license. Cashell, who is manager of the financially troubled Ormsby House in Carson City, told the board there are three companies negotiating with owner Cerberus, a financial firm from New York. He said he hoped an announcement could be made in the "next week or so" of a new owner.

Cashell said there has been no talk of closing the hotel-casino, built in 1972 by former U.S. Sen. Paul Laxalt. But he said there has been a "serious dropoff in business" since the property went on the auction bloc.

Cashell, who is under contract to Cerberus to run the Ormsby House, said he wants the distributor's license so he can sell slot machines if he assumes control of a casino that has an excess of the machines. He said he would not have to go through a third party, thereby earning more money for himself or the casino.

Other applications recommended for approval included Linda Louise Mandas as a co-trustee and co-beneficiary in Nevada Video Inc. in Reno and the Bonanza Lounge and Jonathan's Pub in Las Vegas; WMS Industries Inc., a manufacturer of slot machines, to sell stock to the public; Leroy's Horse and Sports Place in Las Vegas for another satellite sports book at Hobey's Casino in Sun Valley and reorganization of E. G. & H. Inc. at the Las Vegas Club in Las Vegas in a move to gain tax advantages.