Friday, April 24, 2009 | 2 a.m.
The Nevada Gaming Commission will consider an amendment that would enable an institutional investor to hold up to 25 percent of the voting securities of a company without being licensed individually by the state.
Under current regulations, institutional investors can hold up to 15 percent of a company’s voting shares.
The proposed amendment was submitted by longtime Las Vegas gaming attorney Frank Schreck.
“During the past 16½ years, the institutional investor regulation has served both the state and the industry well,” Schreck said in a memo to the commission.
“It has permitted large financial institutions to increase their investments in the Nevada gaming industry,” Schreck said. “These regulated investments have played a substantial role in the growth and expansion of Nevada’s gaming industry and the state’s economy. However, the industry is now faced with new challenges in the current economic climate.”
Schreck said that by increasing the percentage on voting securities, the commission would open the door to more investment in public companies without ceding management or operational controls.
The commission and the state Gaming Control Board will schedule workshops with industry representatives before formally considering amending regulations.
The meeting in Carson City was the last for two longtime commissioners, businessman Art Marshall of Las Vegas and former Lt. Gov. Sue Wagner of Reno. In May, they will be replaced by Las Vegas-based lawyers Joe Brown and John Moran Jr., a former commissioner.
In other business, the commission approved settlements with two companies, one based in Las Vegas, for violations of gaming regulations.
Las Vegas Gaming Inc. was fined $10,000, according to terms of the settlement agreement.
According to a complaint filed by the Gaming Control Board, Las Vegas Gaming, which operates an intercasino-linked system that pays winning players in multiple properties, did not have the minimum bankroll required to pay a jackpot winner on two dates in 2008.
In addition, the Control Board said the company failed to notify regulators of the deficiencies that occurred April 23 and June 2 that year.
Representatives of Las Vegas Gaming did not challenge the allegations.
In a separate complaint, an Ely licensee was fined $25,000 and had three additional requirements placed on its license in connection with a series of alleged accounting violations.
In addition to being fined, Norman Goeringer, who operates the Jailhouse Motel and Casino in Ely, was ordered to hire a certified accountant, select a compliance officer and secure a license for a key employee to oversee the operation.
The state presented a 26-count complaint outlining numerous violations.
The commission also approved gaming licenses for William Boasberg, vice president and chief financial officer of the Mirage as an officer; Ryoichi Kimura, chief administration officer and vice president of the Las Vegas office of Konami Gaming, as a key employee; and Reno Mayor Bob Cashell as a director for the Bonanza Casino in Reno.
The commission also licensed 75 slot machines at the Stateline Casino in Mesquite. Kent and Kurt Slight are executives, directors and shareholders of the property.
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