Owner Behnen denies Horseshoe is in trouble

Monday, Oct. 14, 2002 | 11:02 a.m.

Nevada gaming regulators have allowed Binion's Horseshoe to return to service all of the casino games state agents had shut down Oct. 1 due to a shortfall in cash reserves required to pay jackpots.

But last week's favorable action by regulators comes amid bad news for some Binion's Horseshoe workers, who must now pay up front for services at several medical clinics around town. Fremont Medical Center's five clinics in the Las Vegas Valley have stopped accepting health care coverage for Binion's employees because the centers were having difficulty getting insurance claims paid, clinic employees said last week.

Despite the Oct. 1 shutdown of some games and the health insurance problem, Binion's owner Becky Behnen denied claims of financial difficulties at the downtown Las Vegas casino.

In an interview with television station KLAS Channel 8, Behnen said the games' shutdown was a "misunderstanding" and caused her so much stress that she was briefly hospitalized.

She also apologized to the public for the shutdown and the cancellation of a weekend slot tournament.

The shutdown fueled speculation about financial problems at the casino, which has a troubled past. Unlike some competitors that are part of publicly owned corporations, Binion's is privately held and is not required to release financial information to the public.

In 1996, Behnen filed a lawsuit against her brother, Jack Binion, accusing him of intentionally mismanaging the casino and piling up $20 million in losses. Two years later, she bought out her siblings' stake in the casino, becoming the property's sole owner.

The casino is popular with poker players and plays host to the annual World Series of Poker, which draws gamblers and celebrities alike. However, like other downtown properties in the shadow of the Las Vegas Strip, it has been hurt by a downturn in tourism and the still-sluggish economy.

Benhen has declined recent requests for interviews with the Las Vegas Sun.

A Binion's official said the Oct. 1 bankroll shortage was due to a "temporary shortfall" in cash after a number of employees cashed checks at the cashier cage at once.

Gaming Control Board Chairman Dennis Neilander has declined to comment on the casino's financial condition, saying the property is now in compliance with state standards. He has also declined to reveal the number of machines shut down and the casino's reserve requirement.

Each casino has a different reserve requirement based on the number of games in operation. The bankroll is primarily used to pay off gamblers should several jackpots hit at once.

A top official for the Culinary Union in Las Vegas also declined to discuss the financial situation at Binion's.

"I'm not privy to the books of the Horseshoe," said D. Taylor, the union's secretary-treasurer.

The casino discussed "some financial difficulties" during earlier contract talks, Taylor said. Negotiations last summer resulted in signed contracts for health benefits and wage increases at both downtown and Strip hotel-casinos.

The Binion's contract, like those for other downtown casinos, took those troubles into consideration, he said.

Taylor said he wasn't immediately aware of the condition of the union-managed health plan for Binion's workers. The plan, which doesn't have arrangements with Fremont Medical Center, isn't part of the company's own employee health care plan, he said.

Binion's is battling two lawsuits by groups claiming the casino owes rent for a parcel located within the casino and dues for the maintenance of the Fremont Street Experience tourist attraction.

A hearing is scheduled for today in Clark County District Court to hear a plaintiff's motion for summary judgment in the unpaid rent suit. The suit was filed in April by five investors who claim they hold lease rights to a parcel in the former Mint casino, which is now part of Binion's.

Fremont Street has obtained a trial date next year in Clark County District Court for a suit the company filed in August 2001. The suit claims past due fees of at least $1.9 million. Documents filed with the state Supreme Court this year show Binion's said it needed $1.2 million in cash reserves to remain in compliance with state bankroll requirements.