Station Casinos expects quick approval of Indian casino

Thursday, Feb. 10, 2000 | 10:58 a.m.

CARSON CITY -- Station Casinos, which owns four big hotel-casinos in the Las Vegas area, feels federal approval will come in late summer for its proposed $100 million casino on Indian land near the freeway in California that links San Francisco and Reno.

Station Casinos has an agreement with the United Auburn Indian Community for the casino on 50 acres off Interstate 80 near Roseville, Calif., which could siphon customers away from the Northern Nevada resorts.

Scott Nielson, executive vice president and general counsel for Station Casinos, told the Nevada Gaming Control Board Wednesday he expects approval from the Bureau of Indian Affairs and the National Indian Gaming Commission by September.

Voters in California decide next month on allowing Indian gambling to expand. Most polls show it is heavily favored to pass.

There is local opposition in Placer County to allowing the tribal casino. But Nielson said Placer County has entered into a memorandum of understanding with the tribe that it supports the land uses if the Indians will conform to all local ordinances, such as building codes and impact fees.

"It's been a compromise with Placer County," Nielson said.

The tribe is seeking approval for two parcels -- one for a reservation and the other, 50 acres for the gaming complex. The Bureau of Indian Affairs would have to approve the use of the one parcel for gaming purposes. The National Indian Gaming Commission would have to approve the management contract with Station Casinos.

The Las Vegas company was before the control board for approval to pledge its equity securities of Palace Station, Boulder Station, Texas Station and Sunset Station to the Bank of America in connection with loan agreements.

Gaming Board member Dennis Neilander said Station Casinos paid off a $72 million loan but now has a $200 million term loan agreement and a $350 million revolving loan agreement. The board unanimously recommended approval and the state Gaming Commission will meet Feb. 24 to give final passage.

Nielson, in an update on activities by Station Casinos, said it has ended an agreement with "Youbet.com," a Califonia company, for development of a closed loop system to allow bettors to place wagers from their computers at home on sports and horse racing. He said the company is exploring the idea on its own.

The customer would place money at the casino and then be able to make the wagers through the computer. It's similar to the telephone betting system now in many clubs.

Nielson also said he hoped other casinos would follow the lead of Station Casinos in donations to help problem gamblers. The company has donated $50,000 to a group in Southern Nevada to provide counseling and treatment to compulsive gamblers who can't pay for the service.

In other items, the board recommended approval for: