Thursday, Oct. 9, 2003 | 11:05 a.m.
CARSON CITY -- West Virginia-based MTR Gaming, which owns the Ramada Inn and Speedway Casino in North Las Vegas, gained preliminary approval Wednesday for a permanent license on a 2-1 vote by the state Gaming Control Board.
But board members made it clear they want to take a closer look at one of the upper managers of MTR -- a former sheriff in West Virginia who was indicted and then acquitted on 10 counts including extortion and failing to enforce the gaming laws in that state.
MTR operates the Mountaineer Racetrack and Gaming Resort in Chester, W.Va. It had received only two-year limited licenses in the past in Nevada because of problems in the corporation.
For more than two hours board members questioned Edson Arneault, chairman of the board and chief executive, and John W. Bittner Jr., chief financial officer, on the slowness in putting into place tighter controls on purchases and expense accounts.
Two former employees of the company in West Virginia apparently were involved in a kickback scheme involving purchases and a grand jury is investigating, Nevada officials said. Board Chairman Dennis Neilander said the investigation was not focused on the company.
The toughest questioning came from board member Bobby Siller, who grilled former Hancock County Sheriff Theodore Dragisich, the special projects coordinator for the company in West Virginia.
Dragisich told Siller he didn't want to talk about the federal 10-count indictment or the charges he was acquitted of. But Siller told Dragisich that allegations about illegal bookmaking are serious matters in Nevada.
Siller elicited testimony from Dragisich that while he was sheriff he knew about illegal bookmaking by some of his longtime friends but he never took action. Dragisich said the illegal bookmaking was taking place in the cities in the county and he was charged with policing the county.
He said he never brought the illegal activity to the attention of other law enforcement officials. He said he was more concerned with controlling drug trafficking, a worse crime than bookmaking.
The board ordered Dragisich to submit an application for licensing as a key employee so it could look further into his background and several confrontations with law enforcement officials after he left the sheriff's office having served eight years.
Siller voted against the application, saying the company had two limited licenses and he had expected it to come back for an unrestricted license with a clean slate. He said management has been given the opportunity to cure the problems with purchasing and expense accounts and he added, "enough is enough."
Neilander said, however, the company has "begun the process of hiring good quality people" and its problems were not as bad as in the past. He initially said he would like to see the license limited again but board member Scott Scherer said he favored an unlimited license.
Neilander then agreed to a full license and said only a fraction of the business of the company is in Nevada.
The board also recommended approval for:
International Game Technology to take over Acres Gaming Inc. of Las Vegas in a $143 million deal. Tom Baker, president of IGT, said the two companies have worked together in the past on technology. IGT is paying $11.50 a share for the 13 million outstanding shares. There is a suit pending in District Court in Las Vegas by a minority of the shareholders who have tried unsuccessfully so far to block the deal.
Former Control Board Chairman Richard Bunker for a temporary license as receiver of Silver State Gaming, a Las Vegas slot machine operator and distributor that puts slots in City Stops. Bunker was appointed receiver by former District Judge Gene Porter after the owners of Silver State got into a fight. The board was advised there was "much legal wrangling" still going on between the partners.
Longtime Las Vegas gaming figure Paul Lowden for Archon Corp, a publicly traded corporation. Lowden's brother David has invented a game called "Slot Tables" that is played with chips. It encompasses a 21-table with a computer in the middle that runs four slot reels. The players bet. One player pushes a button and the first two reels rotate and then stop. The players then have a chance to make an additional bet on the outcome. The player then hits the button and the final two reels roll and then stop, signaling a payout or a loss to those who bet.
The state Gaming Commission will meet Oct. 23 in Carson City to take final action on the applications.
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