Regulators move to limit slot locations in stores

John Wilen

Friday, March 26, 1999 | 10:34 a.m.

The Nevada Gaming Commission took a stand of sorts on grocery store gambling machine placement Thursday, one day before it was to consider broad new regulations restricting where slots can be placed in stores.

Hearing an otherwise routine application submitted by Anchor Coin for 15 slot machines at a new Smith's Food & Drug Center grocery store at 9851 W. Charleston Blvd., several commissioners had serious problems with the companies' plans to locate some machines outside of a gaming alcove, near restrooms and shopping areas.

In the past, the application would likely have passed without much comment. But not this time, not in an environment in which everything appears to be changing for the retail gambling industry. Mere months after enacting new regulations designed to combat problem gambling, the Commission appears on the cusp of passing rules that would require gaming machines in retail stores be physically segregated from shopping areas.

And though the proposed new rules have not yet been passed into law, they weighed heavily in the Commission's deliberations Thursday. Commissioners ultimately decided to limit the restricted gaming license to a six-month period, an interval intended to give Anchor and Smith's time to come up with a more acceptable configuration.

In the application at issue, 10 to 11 machines would have been located in an alcove, while four or five would have been outside the alcove, near restrooms and checkout stands.

"It does trouble me that the machines are right there by the bathrooms where minors always go," said Commission Chairman Bill Curran.

Several commissioners wondered why the companies could not simply cram all the machines into the alcove. John Horsedaniel, Anchor's director of route operations, said such a configuration would be too confining.

Some wondered if the store can simply live with fewer machines -- a solution favored by Gaming Control Board Member Bobby Siller, who voted against the application at a Board meeting earlier this month.

"You chose to stick them out in the aisle instead," noted Commissioner Brian Sandoval.

But acknowledging they'd approved similar applications in the past, commissioners decided they could not selectively deny this one, even given the imminence of their new rules. They compromised instead, imploring Anchor and Smith's to come up with new configurations that will remove all gaming machines from retail areas.

Horsedaniel assured commissioners the companies will do just that, and said that in fact the case in point was the result of a design error. The alcove was to have been bigger. He said Anchor will offer to help Smith's pay to enlarge the alcove. Future stores will be designed with larger alcoves located away from bathrooms and checkout stands, he said.

In other actions Thursday, the Commission:

Approved Harrah's Entertainment Inc. Chairman and Chief Executive Phil Satre as director of the Rio hotel-casino, and chairman and director of Showboat Inc. Edwin O. Robinson was also approved as senior vice president and secretary of the Rio and Showboat, and as a Rio director. Colin V. Reed was approved as a director and financial officer at Harrah's, Rio and Showboat. Harrah's acquired Showboat and the Rio last year.

After Harrah's moves its headquarters to Las Vegas later this year, said Satre, he will split his time between residences in Las Vegas and in Washoe County.

Approved Peter A. Morton as controlling shareholder of the Hard Rock hotel-casino. Morton said the Hard Rock is doing well despite on-going construction that will add two new restaurants and an expanded pool area. "I think the hotel's going to be 100 percent improved when we're done," said Morton.

Approved Hollywood Park Inc. stock pledges related to a debt offering. Hollywood Park is based in Inglewood, Calif.

Approved Powerhouse Technologies Inc. stock pledges related to a debt offering and a delayed public offering. The Commission also approved Powerhouse's name change from Video Lottery Technologies Inc. Powerhouse is based in Atlanta.

Approved the transfer of a 4 percent interest in the Aztec Inn hotel-casino, 2200 Las Vegas Blvd. South, from owners Gerald Brinkman, Paul Kellogg III, Gary Vause and Donald Dombrowski to general manager William Maxwell.

Commission members expressed concern that a large number of lawsuits between Aztec Inn owners were detracting from their focus on the business.

"Things have gotten pretty complicated down there," said Curran.

Suits include a December case in which Brinkman accuses Kellogg, Vause and Dombrowski of self-dealing loan transactions. According to the suit, Kellogg, Vause and Dombrowski loaned the Aztec Inn money and then had the casino repay those loans at high interest rates. At the same time, Brinkman was losing money, states the suit.

An attorney for Kellogg, Vause and Dombrowski said Brinkman has made similar loans.

At the Commission meeting, Maxwell said the owners are trying to settle the suit.

Approved an application by PDS Financial Corp., of Eden Prairie, Minn., for a license to manufacture gaming machines.

Approved Atlantic City Coin & Slot Service Co. Inc. stock pledges related to a public offering. Atlantic City Coin & Slot is based in Pleasantville, N.J.

Approved an application to transfer nine tenths of one share of common stock in Exber Inc. from the Estate of Jack I. Novak back to Exber. Exber, at 600 E. Fremont St., owns interests in the El Cortez, Western, Las Vegas Club and Union Plaza hotel-casinos.

Approved the transfer of a 25 percent interest in Jormad Inc. from Kevin L. Kelley to Roger M. Szepelak. Jormad, located at 8217 Taos Paseo Ave., owns the Exchange Club in Beatty.

Approved an application to transfer 3,030 shares of Imagineering Systems Inc. from Carl Conti back to the company, and 470 shares from Conti to Billy Ray Williams. Imagineering Systems, based in Reno, is a keno systems supplier.

Approved Filipe V. Coronel as general manager of Vegas Moose Inc., doing business as Moose McGillycuddy's Pub & Cafe, 4770 S. Maryland Parkway.

Approved Maria De Jesus Corral as executrix of the estate of Camilo Corral, owner of Corral Investments Inc., doing business as Club Guadalajara, 1600 Las Vegas Blvd. North, North Las Vegas.

Approved the transfer of a 75 percent interest in T.J.J.'s, doing business as Chilly Palmers, 1640 E. Warm Springs Road, Henderson, from Terry D. Hendrick, Nick J. Blydenstein and Joseph R. Marsella to Pasta Bella LLC, a company owned by Leslie M. Dunn.

Approved the transfer of a 33.33 percent interest in Goudy's II Inc., 2841 W. Craig Road, North Las Vegas, from the Monroe C. Schneider Trust to Dorin L. and Angela F. Goudreau.

Approved "Bandit," a new slot machine developed by Casino Data Systems. Bandit is a five-reel slot that has a second-play bingo game. Players accumulate bingo numbers while playing a standard video reel game. Like a bingo game, they try to get five numbers in a row on the board. When that happens, they are awarded a bonus credit. Bandit has been on trial at the Gold Coast, Rio and Bally's hotel-casinos.

The Commission also approved restricted gaming licenses for:

Golden West Gaming Ventures LLC, doing business as Max Bett's Funhog Ranch, 495 E. Twain Ave., owned by John R. Winegard, Gary L. Brotherson, Robert J. Doe and Bruce Osborn.

United Coin Machine Co., doing business at Carrow's Restaurant, 3780 Las Vegas Blvd. South; at North Las Vegas Elks #2353, 2939 Van Der Meer St., North Las Vegas; at a 7-Eleven, 9192 W. Cheyenne Ave.; at a 7-Eleven, 531 E. Sahara Ave.; at a 7-Eleven, 3190 N. Lamb Blvd.; at a Laundromat, 1801 E. Tropicana Ave., #15-16; at Carrow's Restaurant, 4680 S. Maryland Parkway; at Supreme Cleaners and Laundry, 3260 Civic Center Drive, North Las Vegas; at Coin Laundry Cleaners, 4940 E. Tropicana Ave.; at Henderson/Green Valley Elks Lodge #2802, 631 E. Lake Mead Drive, Henderson; at Laundry Basket, 679 N. Nellis Blvd.; at Miriam's Laundromat, 3266 Las Vegas Blvd. North, North Las Vegas; at Flight Deck Restaurant, 2730 Airport Drive, #201, North Las Vegas; at Sparkle Laundromat, 73 W. Lake Mead Drive, Henderson; at Sparkle II Laundromat, 531 E. Sahara Ave.; at Rancho Ci rcle Laundromat, 2401 W. Bonanza Road, Ste. Q; at Spring Mountain Laundry, 5040 Spring Mountain Road; at Super Wash, 1549 N. Eastern Ave.; at Vanna's Laund

romat, 3642 Boulder Highway; and at Wash N Save Laundromat, 235 N. Eastern Ave.

H&B Enterprises Inc., doing business as Bailey's, 4341 N. Rancho Drive, owned by Henry G. Nogiec and Toby D. Fleharty.

Terry's Hideaway Lounge, 7909 Giles St., owned by Thimios A. Petropoulos.

Cstore #2 LLC, doing business as AJ's Mini Mart, 400 N. Eastern Ave., owned by Sharon L. and Stephen E. Haberfeld.

Jild Corp., doing business as Las Vegas Gaming Co., doing business at Elk's Lodge #1468, 4100 W. Charleston Blvd.

Southwest Gaming Services Inc., doing business at 19th Hole Bar & Grill, 1361 W. Warm Springs Road, Henderson, and at Back To the 50's, 9400 W. Sahara Ave.

Cardivan Co., doing business at Villa Pizza, 2211 S. Maryland Parkway, and at a Rite Aid Drug Store, 5675 S. Rainbow Blvd.

Sunset Coin Inc., doing business at a 7-Eleven, 2339 N. Jones Blvd.