Gaming Commission suspends license of Horseshoe

Saturday, Jan. 10, 2004 | 7:30 a.m.

CARSON CITY - The state Gaming Commission Saturday signed an emergency order suspending the operation of table games and slot machines at the financially troubled Horseshoe Club in downtown Las Vegas until it posts the required bankroll to pay off winners.

The commission said owner Becky Behnen, daughter of the founder Benny Binion, must continue to pay the taxes and license fees due during the closure of the casino, a landmark in the downtown.

Dennis Neilander, chairman of the state Gaming Control Board, said Behnen has agreed to the condition. He declined to say how much of a bankroll Behnen must put up before the casino is reopened.

Deputy U.S. marshals, Internal Revenue Service agents and Metro police closed the casino Friday night and seized up to $1.9 million in cash from the tables and the cashiers booths because of debts owed the pension and welfare funds of workers at the 52-year-old casino.

Neilander said state gaming agents accompanied the federal marshals. He said the marshals allowed the players to cash in their chips and the slot players to redeem their credits before collecting the cash.

Without that cash, Neilander said, the casino did not have the required bankroll for its games.

Peter Bernhard, chairman of the Nevada Gaming Commission, said this "is not a pleasant circumstance." At a special meeting of the commission Saturday, Bernhard also said Behnen has agreed with the unanimous decision of the commission.

The issue will be placed on the Jan. 22 meeting of the Commission for "follow-up and for any other action that might be necessary," said Bernhard.

Behnen must gain approval from both Neilander and Bernhard before any

games or slot machines will be activated. They would decide if the bankroll is sufficient to back the gambling.

Binion's future is unclear. The casino has been in financial turmoil for some time, and the IRS filed two separate liens - for $2.5 million and $5 million - last year for back taxes.

Neilander said Behnen was current with her state taxes. Even though the casino is closed, Behnen must continue to pay the fees on each slot

machine and table game. These taxes are different than the tax on the gross win from the table.

Neilander said the hotel continues to operate.

U.S. District Judge Roger Hunt signed the order Friday allowing the seizure of the cash that is due the Southern Nevada Culinary and Bartenders Pension Trust Fund and the Hotel Employees and Restaurant Employees International Union Welfare Fund.