Las Vegas slot applicants run into obstacles

David Strow

Friday, Nov. 5, 1999 | 11 a.m.

Five Las Vegas-area gaming applications were referred back to regulators over various issues in a contentious two hours Thursday.

The Nevada Gaming Control Board also placed two-year time limits on another two applications because of concerns that applicants had not been entirely forthcoming with information.

All applications considered during Thursday's session were restricted locations, which include such businesses as bars, grocery stores and convenience stores.

In Thursday hearings, the board:

The board did not express concerns about ETT's suitability, or the suitability of Western Gaming. However, the board refused to move forward on the application because of the property's manager, Robert Landon.

In 1995, the Control Board rejected a license application by the property's owner, Larry Butler. The board rejected the application after finding that Landon was a "hidden owner" of about 49 percent of the company's stock, a finding that Landon continues to contest. The board took no action at that time against Landon.

"It was the hidden ownership that pushed me over the edge (in 1995)," said board Chairman Steve DuCharme. "He did not come out as a denied applicant, but from my perspective, he was as responsible for the lack of candor."

Landon insisted in the hearing that he was never an owner of the property. Instead, he argued that he signed a document that called for him to receive the stake in the property if he was not paid on a loan extended to Butler.

The board will reconsider the matter once Landon files a suitability application.

Greyhawk was attempting to foreclose on Osborn's ownership after he defaulted on a personal loan extended by the company. But in order to extend the $10,000 loan, Greyhawk issued additional shares to secure the loan.

The company never informed the Control Board that new shares were being issued, as is required by gaming regulations.

Preston Howard, attorney for Greyhawk, said the failure to notify the board was an oversight by an attorney unfamiliar with Nevada gaming regulations.

The application was referred back to staff, pending a disciplinary investigation by the attorney general.

The board moved to pull the application after investigators discovered an arrest on the record of applicant Nahla David that was not disclosed on the gaming application. Investigators found that David was arrested and convicted in San Diego on charges of perjury on an application to receive state aid, which were reduced to misdemeanor charges. She said she is still on probation.

When questioned by board members, David said that she "didn't understand the question" on the application. The charge was levelled after she failed to report her husband's income on the state aid application; David said she was unaware of her husband's whereabouts at that time and denied any intent to deceive California officials.

"The fact that you didn't disclose this leads me to believe you don't meet the suitability requirement of honesty and integrity required of an applicant," DuCharme said.

Co-applicant Adil Yako did not attend Thursday's session. The board said it had found a similar omission on Yako's application. The board moved to refer the application back to staff until Yako could attend a hearing.

Board members did not express concerns about Domino's individual suitability. However, his application ran into difficulty after it was revealed that his father, Anthony Domino Sr., is the landlord of record on the property.

Three separate applications to offer gaming at the location were withdrawn in the 1980s and 1990s because it believed the senior Domino was not a suitable applicant for gaming.

Domino Sr. was arrested in the 1970s while manager of the Royal Las Vegas casino, and charged with theft of company property. These charges were later dismissed. The board was also concerned with Domino Sr.'s arrest record in New York in the 1940s and 1950s and allegations of organized crime ties.

His son received a two-year license in 1997, but board members said that application would not have been approved if it was known Domino Sr. was still owner of the property.

Domino's attorney, Jeff Silver, said his client believed he owned the property until very recently. He pleaded with the board to allow the application to move forward, and allow Domino Jr. to work to remove his father from the property's title before this month's meeting of the Gaming Commission.

"You finally have someone with a Domino name that shouldn't drop like the rest of the Dominos," Silver said. "He can't deny his heritage.

"This should be an episode on Sally Jesse Raphael or Jerry Springer about, 'My father ruined my life."'

But board officials were firm about not allowing the application to move forward while the father was still listed as landlord.

"We want to end this right now," said board member Bobby Siller. "We want to get him (Domino Sr.) out of there. You've had two years to do that."

The application was referred back to staff at Domino's request. Silver indicated Domino will move forward with the application once his father is removed from the title deed.

The store, a 1,200-square-foot produce store, had applied Thursday as a grocery store. However, board members noted that the minimum square footage allowed for a grocery store holding a restricted license was 10,000 square feet.

Board members were at a loss for how the store could be classified to conform with restricted gaming license requirements, since it didn't appear to fall into the convenience store category either.

"This is not a grocery store, it's not a convenience store ... I don't see how it could be permitted," said board member Dennis Neilander.

The application was nearly referred back to staff after confusion arose over a 1993 arrest by applicant Merlinda Aranda Niadas in Sparks for a bad check.

Niadas disclosed the event, but told board agents that her husband signed the check and cashed it at a local casino. But when a copy of the check was presented at the meeting, Niadas admitted that the check bore her signature.

Niadas explained that the couple had just been fighting, and admitted she wrote out the check, cashed it and gave him the cash. She said the circumstances had caused confusion, and that there wasn't an intent to deceive the board. Board members were satisfied with the explanation, but said they had to restrict for two years because of the circumstances.

"It's not inconceivable her recollection of events could be different," Neilander said.

A 1997 conviction for DUI in California -- and an unclear story from pub manager William Derrick Newton -- caused the board to limit the property's license.

When pressed for an explanation of the incident, Newton responded that he was not drunk, and that police thought he was drunk "because of the way I was speeding."

But DuCharme noted that the police report indicated a blood alcohol level of .016, a level that would indicate extreme impairment. Newton responded he had not seen the report or was aware of the test.

"Since you were convicted of the crime, it leads me to believe they had the evidence," DuCharme said. "I'm really not satisfied with your responses. This is not the type of issue that usually results in denial, but some limitations are in order."

The game, a multicoin, multiline video slot machine, features a second bonus screen. During this round, the player selects one of five buildings. If "Henry," (described as a "friendly fugitive") is hiding in the building selected, the player receives a multiplier bonus.

Sigma officials said they plan to base an entirely new line of games around the machine.

"We're planning a new generation of products based on this particular platform," Sigma's vice president of engineering told the board.

The game plays as a hybrid of "War," blackjack and poker. The player initially makes three bets. The first bet is decided between player and dealer by who has the higher card. A second card is then dealt, and the game progresses as traditional blackjack to resolve the second bet.

Each hand is then filled out to seven cards. Each player selects the best five cards and makes a poker hand, resolving the third bet.

"The game was received very well," said Joyce Miesen, shift manager at the Sahara. "Customers liked the variety of the game. The only problem is, we felt it took a long time to get decisions out."

Awada, however, said that the game's speed would pick up once players and dealers became familiar with the game.

"This looks like it will be a fairly entertaining game," Neilander said.

The game is played much like seven-card stud poker. Players receive seven cards, then attempt to beat the dealer by selecting a five-card hand. This resolves a straight poker bet.

Players also have the option of placing side bets on higher poker hands. Payoffs include a 1-1 bet for kings or higher, 4-1 for three of a kind or higher, 30-1 for a full house or higher, and up to 10,000-1 for four aces and a joker.

The game didn't perform very well at Sunset Station, however, said casino manager Cheryl Vetter.

"The layout is very frightening and confusing," Vetter said. "We trialed it, pulled it, put it out again, and it just didn't make it.

"It is very confusing. There's a lot of decisions, and question after question."

Lo said he planned to simplify the game by removing several of the side bets, including the three of a kind and full house bets, because wins on these bets were few and far between, frustrating players.

"A lot of people get mad at those two bets," Lo said.

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