Fremont Street claim still pending against Binion’s

Thursday, Oct. 3, 2002 | 11:25 a.m.

A shortfall in funds required to pay off gamblers at Binion's Horseshoe was primarily caused by a temporary shortfall in cash used to cash payroll checks for employees, a Binion's official said Wednesday.

The announcement follows an incident Tuesday night in which state gaming regulators shut down dozens of casino games, saying Binion's bankroll fell below levels required to pay off gamblers. Binion's, in the meantime, still faces a claim that it owes $1.9 million to the Fremont Street Experience.

Casinos are required by law to maintain enough cash on hand to pay off gamblers should multiple jackpots hit.

"Needless to say it has caused us some embarrassment, but we are working to correct the problem to be in full compliance with gaming regulators," Horseshoe Club Vice President Lynn Saladino said. "In the meantime the Horseshoe will continue to do business at the level approved by the Nevada Gaming Control Board." Saladino declined to comment further.

Control Board Chairman Dennis Neilander said Wednesday that Binion's has been having financial difficulties, which has prompted agents to step up their usual monitoring of the casino.

As recently as April, Binion's owner Becky Behnen publicly denied widespread allegations that the casino was hurting. Behnen did not return calls for comment Wednesday.

The Control Board and Binion's declined to specify the number of games shut down and the required bankroll amount.

Representatives of the Fremont Street Experience LLC say Binion's has said that it could be shut down if it did not maintain a bankroll of at least $1.2 million.

The Fremont Street Experience LLC, a business entity of participating downtown casinos that maintain the nightly overhead light show of the same name downtown, is embroiled in a legal dispute with Binion's.

In August 2001, Fremont Street filed suit against Binion's in the Eighth Judicial District Court of Clark County to recover past due assessments it claims are vital for the continued operation of the tourist attraction.

In January Fremont Street won a writ of attachment against Binion's, allowing the county sheriff to seize $1.9 million in cash from the property's casino cage to secure Fremont Street's claim. Binion's appealed to the Nevada Supreme Court, claiming the seizure could force it to close, but the court dismissed the appeal.

Binion's later obtained a bond to secure the Fremont Street claim, removing the threat that cash would be seized from the cage.

Wednesday, Fremont Street attorney Patrick Reilly said a trial date has been set for July 8 in Clark County District Court.

The Fremont Street board decided to pursue legal action only after funding shortfalls forced the cancellation of three summer and fall events, he said. Moreover, he said, the company has tried unsuccessfully for about two years to recover past due and current assessments from Binion's.

The casino is one of the original members of the limited liability company.

Though the shutdown of Binion's casino games isn't related to the suit, the incident is disappointing, Mark Paris, President and Chief Executive Officer of Fremont Street Experience LLC, said Wednesday.

"We don't want to see anyone fall on hard times," he said.