Regulators OK private salon for high-rollers

Lisa Snedeker

Friday, July 26, 2002 | 11:10 a.m.

MGM Grand hotel-casino on the Las Vegas Strip will be the first in the state to offer wealthy gamblers the chance to place their bets in private.

The Nevada Gaming Commission on Thursday unanimously approved an application for Nevada's first private gambling salon for high-rollers since the state legalized gambling in 1931.

Tom Peterman, MGM Grand senior vice president and attorney, said the private gambling areas would be in the Mansion Casino, which will have a private entrance from the resort's 29 private luxurious villas.

In addition to attracting more high-end casino customers from Asia and Europe where private wagering is allowed, the resort hopes to bring in more celebrities, who prefer to gamble in private.

"We anticipate that 20 (percent) to 30 percent of the players will be new customers," Peterman said. "Celebrities and sports figures can relax without having to worry about the public asking them for autographs."

The Strip resort, owned by Las Vegas-based gambling giant MGM MIRAGE, could open the new salon, consisting of three parlor rooms as early as the end of August, Peterman said.

"We anticipate that 90 (percent) to 95 percent of our revenue will be from table games," Peterman said.

The private salon, which could hold about 100 players, would be equipped with high-tech surveillance devices to allow regulators to monitor betting at all times.

Commissioners agreed with a recommendation by the state's Gaming Control Board that the private gambling salon license be reviewed in two years.

"It's brand new so we don't have any experience with it," Control Board Chairman Dennis Neilander said.

The state's gambling tax forms will be revised to track the private salons' revenues.

Last month Caesars Palace filed the second application for a salon since the Nevada Legislature last year approved letting casinos offer private gambling.

The new private casinos allow gamblers with at least $500,000 in cash or a credit line. Minimum wagers on private casino slot machines and table games will be $500.

Lawmakers approved the change so Nevada could compete for high-rollers.

Gaming Commissioner Sue Wagner, who initially was against the regulation, commended the MGM Grand on its business plan.

"I look forward to seeing how much new business is generated in the course of a year," she said.