Supper club slots face opposition

Judy Odierna

Thursday, March 6, 2003 | 8:23 a.m.

The proposal to put slot machines in supper clubs received mixed reviews during the Las Vegas City Council meeting Wednesday.

Council members have criticized the proposed change in city law that would allow up to 10 slot machines at any supper club with more than 5,000 square feet of usable floor space and five machines for supper clubs with less than 5,000 square feet. A final decision will be made at an upcoming council meeting.

Supper clubs are restaurants that have small bars but derive most of their income from meals. Taverns make most of their money from liquor sales and are currently allowed to have up to 15 slots machines.

Councilman Michael McDonald complained Wednesday that when the supper club ordinance was created, those seeking the designation said they would not ask for gaming.

"They came in and said they would never ask for gaming," McDonald said. "I remember (them saying): 'We are not taverns.' "

But Las Vegas is the the only area municipality that does not allow gaming in supper clubs, officials said.

Many local municipalities follow the Clark County model, which restricts supper clubs to a maximum of five machines. County supper clubs that had 15 gaming machines before December 1992 were grandfathered in and allowed to keep the 15.

There are currently 230 taverns in the city of Las Vegas and 34 supper clubs. Supper clubs must have a minimum of 125 seats and are required to be 400 feet away from a church or school. There are no distance requirements between supper clubs. Taverns must be 1,500 feet from schools, churches and each other.

A supper club pays $40,000 for its first liquor license and a tavern pays $60,000. A supper club also pays a $1,600 annual fee to retain the license while a tavern pays $2,400.

In 1996 Las Vegas decided not to include slot machines in a new ordinance that eased restrictions for supper clubs.

The Nevada Tavern Association has opposed the bill, saying it would hurt their profits.

"By giving them 10 machines you are making them a tavern," said Ron Drake, president of the Nevada Tavern Association. "If the motive behind this is to increase fees then allow us to go up 20 machines and tax us accordingly."

Gloria Peterman, who owns Gloria's II, 1966 N. Rainbow Blvd., she says she's surrounded by several supper clubs including Houlihan's at 1951 N. Rainbow.

"If they put machines in, what's going to happen to my business?" Peterman said. "It will put me out of business."

Houlihan's is one of the supper clubs hoping to get the slots.

Attorney Thomas Amick, representing Houlihan's, said the gaming would be there as an accessory. For example, a couple waiting for a table could play the machine while they waited, he said.

"People go to a tavern to unwind, play pool, drink and gamble," Amick said. "People go to a supper club to eat. Just like the bar is an accessory use, the gaming would be an accessory provided as a convenience."