Vegas businessman recommended for license

Monday, Aug. 16, 2004 | 10:52 a.m.

CARSON CITY -- A Las Vegas businessman who was turned away last year from obtaining a state casino license has won preliminary approval from the Nevada Gaming Control Board, which praised him for his turnaround.

The board last week recommended approval for Andrew Donner to hold 70 percent of the gaming operations at the Lady Luck in downtown Las Vegas.

Board member Bobby Siller said Donner and others are the future of Fremont Street and the Strip. He said Donner has "energy and vision ... you bring what it needs," referring to the downtown.

Donner said after the meeting he is in escrow to also buy the 758-room hotel at the Lady Luck.

Donner who has gaming licenses at seven taverns in Clark County named Timbers, ran into trouble last year from board members who said he had not filed proper tax returns.

Board Chairman Dennis Neilander told Donner Wednesday that there were serious tax problems involving deductions and other items. He added however "You have been successful. You have cleaned up all your books."

Neilander said Donner was "out of control" with too many businesses and didn't have time to focus. "You have done that now," he said.

The other shareholders in the casino are Keith Grossman and Robert O'Neil. When the board suggested that Donner could not get a license a year ago, Grossman and O'Neil structured a deal to take over the casino. Donner was not denied a license but withdrew his application and the board said he could come back late when he had cured his problems.

Donner said the hearing before the board one year ago caused him public embarrassment and questioned his integrity. He told the board "You forced me to re-evaluate." He said his taxes are all filed on time and there are even some overpayments.

Donner's company also has purchased the Trolley Stop, a closed casino across the street from the Lady Luck. It is being remodeled and there will be shops and a promenade on Third Street between Stewart and Ogden Streets.

He told the board he followed its directions not to associate or be involved with the Lady Luck after his hearing last year. Originally Donner loaned the casino $2 million. But according to the agreement, he was barred from having anything to do with the casino operation.

While he shares office space with Grossman, Donner said they do not talk about the Lady Luck operation.

Donner said he wants to work to "unify the local competitors" in downtown Las Vegas in an effort to revitalize the area.

The state Gaming Commission will take final action on the application Aug. 26 at its Carson City meeting.