PT’s Pubs sale advances with OK from regulators

Friday, April 5, 2002 | 11:05 a.m.

CARSON CITY -- The Nevada Gaming Control Board gave preliminary approval Thursday to Blake Sartini and his wife, Delise, to expand their growing slot machine route business in Las Vegas with the purchase of PT's Pubs, the largest chain of video poker taverns in Clark County.

The board also recommended approval for a corporate restructuring of the Sartinis' business, which has an estimated 1,200 slot machines at 102 locations in Southern Nevada.

Sartini told the board the slot route business has grown 33 percent since he purchased Southwest Gaming Services from Station Casinos Inc. last year.

"The acquisition of PT's Pubs will broaden our presence in the gaming market," said Sartini, former executive vice president and chief operating officer at Station.

The Sartinis are purchasing the 23 PT's locations from Las Vegas businessmen Phil and Tom Boeckle and from a Canadian firm, Revenue Properties Co., for an undisclosed price. The Boeckles and Revenue Properties each own 50 percent in PT's, which have more than 300 machines.

Four of the 23 locations have unrestricted licenses, meaning they are authorized to have more than 15 slot machines. Sartini said PT's is "the best known brand" and he has no intention of changing the name.

He told the board he intends to add one or two new locations each year. And he plans renovations in four of the clubs, once an agreement expires with a rival slot machine route operator to service the businesses.

Under the city ordinance in Las Vegas, the non-restricted PT's Pubs will be able to expand to 35 slot machines. There is no limit on slots in Henderson if the PT's in that city is expanded, company officials said.

There are key employees licensed by the state at some of the PT's locations now. The board talked about requiring these persons to submit new applications. But it deferred action until Blake Sartini has a chance to review the various locations.

The Sartinis will be operating under the name of Golden Gaming Inc., which is a holding company, and will have limited liability companies running the locations, said Michael Alonzo, attorney for the Sartinis.

In the existing slot route business, the Sartinis already serve such locations as the Howard Johnson Airport, the Harley Davidson Cafe and the Hard Rock Cafe, in addition to car washes, pizza parlors, convenience stores and bars.

The video poker tavern business has grown in Clark County as new developments are built. And gaming officials say PT's may be one of the most profitable.

A Las Vegas company named PDS Gaming Corp. originally sought to buy the PT's Pubs but that fell through.

When Sartini resigned from Station Casinos last year, he purchased Southwest Gaming Services for $14 million in Station stock. In less than a year it has grown from 900 to more than 1,200 slot machine placements.

The Nevada Gaming Commission must approve the deal when it meets April 18 in Carson City.