Board to allow entry to bond market

Thursday, May 5, 2005 | 10:46 a.m.

The big fish in the Virgin River took another step toward getting even bigger Wednesday.

The state Gaming Control Board unanimously approved a series of corporate registrations for Randy Black's Mesquite gaming empire that will enable the dominant player in that market to enter the bond market.

The three-member board forwarded to the Nevada Gaming Commission recommendations of approval for the registrations of Virgin River Casino Corp., RBG LLC, B & BB Inc. and Casablanca Resorts LLC, all corporations under Black's control.

Approval, which was without controversy, moves Black -- who controls 75 percent of the Mesquite gaming market -- closer to financing improvements at the Casablanca, Oasis and Virgin River hotel and casino properties.

Black also acquired the Mesquite Star property out of bankruptcy in late 2000 and uses it to accommodate overflow crowds from the other hotels, but Black holds no gaming license for it.

Mesquite is about 80 miles northeast of Las Vegas on Interstate 15.

Late last year and in early 2005, Black has been on a bond market road show to raise capital for a major renovation and expansion.

According to a prospectus filed with the Securities and Exchange Commission, Black's companies would spend $16.3 million in the 2005 and 2006 fiscal years to refurbish rooms in each of the hotels, for new and expanded restaurants and to upgrade the company's slot machines to coinless ticket in-ticket out technology.

Black said the transition to coinless technology was completed last month. The Oasis has 825 slot and video poker machines, the Virgin River 817 machines and the Casablanca, 779.

The filing also said the company would spend $17.3 million in capital expenditures for the development and construction of a new 180-room hotel tower and for the development and construction of a 29,000-square-foot event center at the Casablanca.

The Gaming Commission is expected to take up the application at its May 19 meeting and the SEC is due to approve the registration statement May 20.

Black, who appeared before the board and answered questions about the capital expense projects, said he did not want to comment about the company's plans until after the registration was approved by the SEC. However, he told the Control Board that he intends to roll all his gaming interests under one corporate umbrella to be known as Black Gaming.

In other business, the board: