Gaming briefs for Nov. 6, 2003

Thursday, Nov. 6, 2003 | 11:38 a.m.

LV casino files complaint against Nevada Power

A subsidiary of Harrah's Entertainment Inc. claims delays on the part of Nevada Power Co. are holding up plans to build a power plant at The Rio hotel-casino and have cost the company more than $1.5 million.

Harrah's Operating Company Inc. made the claims in a complaint and request for dispute resolution filed last week with the state Public Utilities Commission.

In the complaint, Harrah's said it requested in July 2002 a meeting with Nevada Power officials to discuss plans to construct and connect a power plant on the site of The Rio. The proposed plant would generate 4.9 megawatts of power, all of which would be used on site and run parallel to the utility's existing system.

More than a year later, however, Nevada Power had not finalized its "interconnection agreement" with Harrah's, causing delays in the project, which was originally scheduled for a July 1, 2003, in-service date, the complaint said. The plant is now scheduled for a Feb. 1 in-service date.

Nevada Power could not be reached for comment on the allegations.

Executives file plan to sell shares

Station Casinos Inc. Chief Executive Frank Fertitta III, President Lorenzo Fertitta and Executive Vice President and Chief Legal Officer Scott Nielson have entered into a trading plan to sell up to 1,185,000 shares of stock.

The plan allows Frank Feritta III, Lorenzo Fertitta and Nielson to sell up to 951,000, 134,000 and 100,000 shares, respectively, upon the exercise of stock options, the Las Vegas company said in a regulatory filing today.

The executives may sell shares "in order to diversify their financial holdings, although they will continue to have a significant ownership interest in the company," the filing said.

The shares may be sold from Nov. 7 through April 30 for Frank Fertitta III and from Nov. 7 to Jan. 30 for Lorenzo Fertitta and Nielson.

The notice follows a separate filing Tuesday announcing plans by Station Chief Financial Officer Glenn Christenson to sell up to 178,845 shares of stock. That filing also said Christenson may sell the shares to diversify his financial holdings.

The shares would be available for sale upon exercising stock options and may be sold through Jan. 30, the filing said.

Company insiders aren't required to disclose why they sell their shares, though some analysts have speculated that rising share prices and a recent cut in capital gains taxes play a role.

LV firm in financial trouble

A Las Vegas company that produces casino and gaming television programming for cable TV outlets said Wednesday that it has "substantial doubt" that it would be able to continue operations.

In a filing with the Securities and Exchange Commission, Players Network Inc. said it has accumulated an operating deficit of $7 million and anticipates additional operating losses and negative cash flow for at least the next 12 months.

The company's third-quarter earnings report showed a loss of $520,244, or 4 cents a share, on revenue of $243,480 compared with a loss of $498,797, or 4 cents a share, on revenue of $459,934 for the same period a year ago.

Players Network, headed by President Mark Bradley, hires on the basis of its production schedule and has between six and 100 people on its payroll depending on its needs.

The company in September launched a television program called "Players World" that reaches 16 million viewers on The Men's Channel, a cable outlet of The Networks Group, a subsidiary of Turner Media Group. Prior to that, the company's gaming programming was shown in hotel and casino television systems.