Lawsuit over slots won’t block sale of LV hotel

Wednesday, Dec. 27, 2000 | 11:01 a.m.

A legal dispute between World Wrestling Federation Entertainment Inc. and its former Las Vegas gaming licensee, Capado Gaming Corp., is scheduled for arbitration and isn't expected to stop the sale of the former Debbie Reynolds hotel-casino, now called the Convention Center Drive Hotel.

WWF sued Capado in February, alleging WWF was inhibited from selling the hotel-casino because of a dispute with Capado over a $250,000 fee that Capado claims it is entitled to. Capado says it is due the fee because WWF caused its gaming license to be terminated when the hotel's restaurant closed. An operating restaurant was one of the license's requirements.

But the wrestlers alleged Capado isn't entitled to the fee because this was part of a separate deal struck between Capado and the Debbie Reynolds resort before it was acquired by the WWF. Capado responded with a countersuit against the WWF, blaming WWF for failing to comply with gaming licensing requirements and causing Capado's gaming operations to be shut down.

Leo Flangas, Capado Gaming's attorney, said: "The lawsuit won't stop the sale, because we're not asking to go back on the property."

He said an arbitrator is expected to be appointed by next week and an arbitration hearing is scheduled within the next six months to a year.

WWF announced plans Tuesday to sell the hotel to Mark IV Realty of Chicago for $11.2 million.