Wynn’s Desert Inn purchase set for state regulatory approval

David Strow

Tuesday, June 6, 2000 | 10:52 a.m.

Steve Wynn's application to acquire the Desert Inn hotel-casino should pass its first regulatory hurdle Wednesday with little difficulty, one of Nevada's top gaming regulators said today.

Wynn is set to appear before the Nevada Gaming Control Board in Carson City, seeking permission to acquire the Desert Inn hotel-casino for $270 million from Starwood Hotels & Resorts Worldwide Inc.

No concerns popped up during the control board's investigation of Wynn, Chairman Steve DuCharme said today.

"The purpose of this application and investigation is similar to all investigations: to ensure that the money is sufficient to keep the property operating, that it's from a suitable source, and that there's enough business competence to carry out the proposed operation," DuCharme said. "We have a pretty good idea where the money's from, and are pretty confident he'll be able to manage it."

Wynn is funding the purchase entirely with personal funds. Wynn received more than $500 million, pre-tax, from MGM Grand Inc.'s acquisition of Mirage Resorts Inc. on May 31. Wynn retired as chairman and chief executive of Mirage that same day.

DuCharme said the board didn't have any specific concerns that members planned to discuss with Wynn, but said board members would press for more information on Wynn's ultimate plans for the 200-acre Desert Inn land parcel.

"This is his opportunity to tell us what his plans are," DuCharme said. "He may not have even completed his development plan, but I'm sure he has some idea (what he wants to do).

"He's generally willing to share his vision with others."

Wynn's company is listed as "Valvino Lamore LLC," incorporated in Nevada April 21. Wynn is listed as the only member-manager of the company.

Wynn is seeking a nonrestricted gaming license for the Desert Inn, as well as an individual license as a member-manager. Also seeking a license is Marc Schorr, former general manager of the Mirage hotel-casino, who is listed on the Wynn application as proposed general manager of the Desert Inn.

Assuming Wynn receives the blessings of the control board, Wynn's next step will be to go before the Nevada Gaming Commission June 22 for final approval. Wynn has indicated he intends to close on his purchase of the Desert Inn immediately after the commission meeting.