Binion’s owner denies casino in financial straits

David Strow

Thursday, April 18, 2002 | 11:08 a.m.

Speculation that Binion's Horseshoe is in deep financial trouble has been rife in Las Vegas, particularly after the downtown casino lost a round in a $1.9 million battle with the Fremont Street Experience.

But owner Becky Behnen is denying that the Horseshoe's financial health is in jeopardy.

Such speculation "is not true," Behnen said Wednesday. "Since 9/11, we're doing very well."

The Horseshoe entered into another legal battle Tuesday that could heighten that speculation. In a lawsuit filed in Clark County District Court, a group of investors claimed that the downtown club owed $126,000 in rent payments -- and is demanding the casino's eviction from the property.

Behnen, however, cautioned against such speculation.

"This is just a perfunctory legal issue over a small piece of land," Behnen said.

The lawsuit was filed by five investors -- Mabel Elwell, the Doris E. Hamilton Family Limited Partnership, Terry McMelroy, Thomas Church and Sharon Griffin. The five claim they hold the lease rights to a parcel located within the former Mint Casino, which is now part of the Horseshoe.

The Horseshoe had been leasing the parcel for $18,000 a month, but stopped making payments last October. The casino has failed to resume lease payments and ignored a demand to vacate the premises, the lawsuit said, and the lease expired March 31.

The lawsuit didn't say how large the parcel was, or where it was located within Binion's.

Behnen acknowledged that the casino had stopped making payments, but said it did so only after repeatedly failing to get in contact with the attorney for the landlord. "It was to get their attention," Behnen said.

But she said the stoppage of payments "wasn't a violation, because (the lease) was month-to-month."

"My lawyers wanted to get everything updated, but they would never return the calls," Behnen said. "I think we made an offer to try to buy this."

"It's such a tiny, insignificant spot, we may not even renew it (the lease)," Behnen added.

The attorney for the plaintiffs, however, said that Binion's sports book is located on the parcel.

"If they think that's insignificant, OK," said Avece Higbee.

The lawsuit came just days after the Nevada Supreme Court refused a petition by the Horseshoe to lift a lien against it by the Fremont Street Experience. Fremont Street claims it is owed $1.9 million in back dues by the Horseshoe, and its lawsuit against the Horseshoe is set to go to trial next January.

In January Fremont Street won a writ of attachment against the Horseshoe, which would allow the county sheriff to seize $1.9 million in cash from the Horseshoe's casino cage to secure Fremont Street's claim. Binion's appealed to the Supreme Court, claiming such a seizure could force it to close, but the state's high court turned the appeal aside.

Fremont Street attorneys said later that the casino had obtained a cash bond to secure the Fremont Street claim, which would remove the need to seize cash from the casino cage.