Wynn’s partner plans to proceed with Vegas resort

Friday, March 8, 2002 | 10:43 a.m.

TOKYO -- Aruze Corp., Japan's biggest maker of pachinko and slot machines, said it will proceed with a Las Vegas casino project after a Tokyo court delayed a decision on a tax evasion charge against the company.

The Tokyo-based company may need to clear charges it hid income from overseas subsidiaries to evade Japanese taxes before it can complete the project with partner Steve Wynn, who plans a major resort at the site of the Desert Inn.

The Tokyo District Court asked for more documentation and the company complied with the request, said Aruze spokesman Hironio Ito. Aruze had expected a decision last month.

"As of now, there is no change in our previous plans," Ito said. The company expects a ruling by the end of April, he said.

An Aruze unit paid $260 million for a 50 percent stake in the Le Reve casino project in Las Vegas. A guilty verdict in Tokyo could block or delay a Nevada gaming license.

"The trial is continuing, and we are still insisting we have done nothing wrong," Ito said. "There's been a delay in the verdict, because we were asked to file detailed documents again."

Japanese tax authorities notified the company of the tax-evasion charge on Dec. 27, 2000, Aruze said.

Aruze's shares have gained 18 percent since the beginning of the year, more than the 7.2 percent gain in the index of all shares traded on the first section of the Tokyo exchange. The shares today rose as much as 100 yen, or 3.3 percent, to 3,150 yen, and last traded at 3,070, up 20 yen.