Gaughan proposes resort for Nebraska riverfront

Monday, May 3, 2004 | 11:07 a.m.

SUN STAFF AND WIRE REPORTS

OMAHA, Neb. -- A Las Vegas casino executive says he wants to develop a casino and hotel for Omaha's riverfront property that he believes could attract as much as 75 percent of Iowa casino patrons.

"I'd put a major dent in them," Michael Gaughan, chief executive of Coast Casinos, told the Omaha World-Herald in a story first reported in Friday editions. Gaughan, who was referring to the business of Council Bluffs, Iowa casinos, was in town recently to receive an award from Creighton University.

Gaughan said the casino and 500-room hotel he's considering are needed to compete with Iowa casinos and to attract large groups to Omaha's convention center and arena.

Gaughan, 61, is one of the supporters of a petition drive aimed at legalizing casino gambling in the state.

The Nebraska casino would be a product of Coast Casinos Inc., which is currently in the process of merging with Boyd Gaming Corp., said Rob Stillwell, a Boyd spokesman.

Boyd and Coast on Friday announced that stockholders of both Las Vegas companies, during their annual meetings, overwhelmingly approved the merger of Coast into Boyd Gaming.

The $1.3 billion transaction is expected to close in mid-2004, subject to regulatory approvals, Boyd said in a statement.

The Keep the Money in Nebraska petition would allow up to two casinos in Omaha, but it also would allow slot machines in restaurants, bars, keno parlors and horse race tracks statewide.

The Legislature's plan is the only one guaranteed to be on the November ballot. It would allow for two casinos, anywhere in the state, but no additional slot machines at other locations.

Gaughan is considering undeveloped land south of Eppley Airfield and has proposed a $300 million facility. However, there is no guarantee that his company would be the one developing a facility should the measure be legalized.

He said the 1,500 hotel rooms currently in the downtown Omaha area are not enough to attract conventions with 3,000-5,000 people.

"You have to have the rooms to get the conventions," he said.

Roger Dixon, president of the Metropolitan Entertainment and Convention Authority, said more rooms in the area would be needed to attract larger conventions, but pointed out that the Hilton, Omaha's newest hotel, could expand.

The 450-room Hilton is located next to the convention center. An additional 150 rooms could be quickly added if demand warrants it, said Keith Hess, general manager of the Hilton Omaha.

The Venetian, another Las Vegas casino company, also has been researching potential Nebraska casino sites.