Stupak clarifies role in Internet gaming

Erin Neff and Ed Koch

Monday, Nov. 13, 2000 | 11:19 a.m.

Maverick casino developer Bob Stupak clarified his role in the planned VegasOne.com Internet casino in a letter sent Sunday to the Las Vegas City Council.

But the receipt of the letter, just three days before the council is set to reconsider the proposal, will likely have no effect on what the board does.

Mayor Oscar Goodman said last week he will still abstain from the vote because Stupak's involvement in the project raises a possible conflict of interest.

Goodman's law firm represented Stupak in an unrelated matter in May. Although Goodman was unaware of his firm's representation of Stupak until the VegasOne.com proposal came up, his law partner did receive money from Stupak.

Stupak declined comment this morning, stating: "The letter speaks for itself."

In the letter, Stupak said he first looked at Internet gaming five years ago, when there were only about 30 online sites.

And although he is not on the board of directors of VegasOne.com, Stupak admits to being the one behind the idea.

"Believing so strongly about such an idea, my patent attorneys applied to the United States Patent and Trademark Office in Washington, D.C., for a patent on this unique concept," Stupak wrote.

Stupak holds several gaming patents on slots, video poker machines and table game concepts.

VegasOne.com has asked the city to lend its name and seal to a proposed Internet casino that would be based in Australia.

The city would get 25 percent of the net profits and 5 percent of the gross gaming revenue -- a total estimated at about $90 million annually by 2002.

Although the city eyes the money for parks, senior centers and a potential property tax rebate, council members remain concerned about the city's potential liability.

The liability concerns, coupled with staunch opposition from Gov. Kenny Guinn, Sen. Richard Bryan, D-Nev., and the gaming industry, has given the proposal an uphill climb.

Odds grew longer for the proposal when Goodman and City Councilman Michael Mack both announced they would have to abstain. Mack's campaign adviser was initially helping to market the Internet casino.

City Councilman Michael McDonald has not participated in either of the two recent public meetings on the issue, and may not take part in Wednesday's meeting.

Councilman Gary Reese, who would chair the meeting in McDonald's absence, said it is possible the council will vote to hold the item in abeyance, delaying a decision.

But VegasOne.com's board of directors wants an answer immediately and could decide to go ahead with the proposal without the city's involvement.

Stupak, who founded the Stratosphere hotel-casino and floated the idea for a Titanic casino last year, said he prefers to remain behind the scenes on his new ideas.

"My intentions are to become a shareholder, just like any other shareholder who may join this venture, and leave the management and operations in the hands of the distinguished Board of Directors who are the most qualified and capable people with an extensive track record of integrity, credibility and trust in the gaming industry today," Stupak wrote.

And although he mentions no involvement in the board, Stupak's attorney, Jim Jimmerson, and one of his business partners, David Sklansky, are both on the proposed casino's board.