Keno set for sports books

Thursday, Aug. 9, 2001 | 11:09 a.m.

SUN STAFF AND WIRE REPORTS

CARSON CITY -- The Club Cal Neva in Reno is introducing a new wrinkle in gaming -- installing keno games to operate at its satellite sports books around the state.

Jeff Siri of the Cal Neva told the state Gaming Control Board Wednesday that ticket writers at the sports books often sit idle. "They spend a lot of time without doing anything," he said.

He said outside the hearing that some casinos don't make any money on keno because it is labor intensive and the play is down. And they operate the keno as a "loss leader."

Siri said he thinks a profit could be made by combining the two operations.

In the last year casinos statewide reported winnings of about $84 million in keno before taxes and business expenses are deducted. The gross win is down about 9 percent from the previous year. Keno takes in less money than 21, craps, roulette, baccarat, pai gow poker, race books and sports pools. It accounts for about 3 percent of the total table game win.

Club Cal Neva, owned by Sierra Development Co, operates 17 satellite sports books. It would start a trial run at the Tamarack Junction and the Sienna, both Reno casinos.

The keno game would be controlled out of Club Cal Neva. Players at the satellite locations would see, through a closed circuit television, the keno numbers selected by a random number generator.

The sports ticket writers would be trained by the keno crew. And there would be supervisors to handle any dispute over a keno ticket.

Board member Scott Scherer said he was concerned about disputes that might arise in Las Vegas books operated by Cal Neva. He wanted assurance they would be handled promptly.

Siri said there are direct telephone lines between the books and the main casino, where there is a supervisor stationed at all hours. Cal Neva has three sports and race books in Clark County. He said the business wants to try the system in Northern Nevada before expanding to the Las Vegas area.

The control board gave preliminary approval for the application but said there must be a two-months trial period.

The board also recommended approval for Cal Neva to install a sports book at Thirstbusters, a tavern in Henderson.

Board members questioned Siri whether there would be enough sports betting at Thirstbusters. He replied he expected the book to write close to $2 million in tickets a year. Thirstbusters (697 Valle Verde Drive) is "on a highly traveled street," Siri said.

The state Gaming Commission meets Aug. 23 in Carson City to take final action on the applications.

Also Wednesday, the Gaming Board voted against outdated Reno hotel-casino purchase plans by a company under control of a Southern California businessman linked to reputed mobsters.

The board recommended denial of the now-defunct application that had been filed by Sapphire Gaming LLC. The Gaming Commission will have final say Aug. 23.

Sapphire and an affiliate, the Hertz Investment Group, sought to acquire three Reno casinos in 1999, starting with a $5 million deal for the Comstock. Also proposed was a $20 million deal for the Flamingo Hilton and a bid for a half-interest in the Sands Regency.

Scherer moved to deny Sapphire, rather than let the company simply withdraw its old application, saying he's concerned because Sapphire is controlled by Judah Hertz.

The board and commission had voted against Hertz last December, saying he failed to tell investigators about associations with numerous people with criminal backgrounds, or about questionable business matters and 86 lawsuits involving him or his family's companies.

GCB investigators said Hertz had dealings with reputed organized crime figures including accused international drug smuggler Jacob Orgad.

The board said Orgad allegedly distributed cocaine for the Gambino and Escobar crime families, supplied cocaine and recruited women for notorious Hollywood madam Heidi Fleiss, and has been linked to distribution of the illegal "ecstasy" drug.

While board members wouldn't vote to let Sapphire Gaming LLC withdraw its application, the panel did endorse withdrawals by three other Hertz family members who didn't cause investigators any concern.

In other action, the Control Board recommended licensing for the new, $16 million Tamarack Junction casino in southwest Reno that's scheduled for a Sept. 7 grand opening.

The club was recommended for up to 240 slots and a sports book. General manager Casey Sullivan said a possible expansion in three to five years could increase the slots to 600 and also include table games.

The casino was built on a 14-acre site where the old Tamarack Bar, a favorite with some motorcyclists, was located. "It's quite an improvement over the old Tamarack," Tamarack Junction attorney Bud Hicks said.

Sullivan said the new club has a Virginia & Truckee Railroad theme, will employ more than 100 employees, and will depend mainly on locals living and working in the rapidly developing area just south of Reno.