Facebook
Fark
Digg
Reddit
StumbleFiling shows Binion’s owner delinquent on rental payments
Tuesday, Aug. 11, 2009 | 2:05 a.m.
Sun Archives
Sun Coverage
Beyond the Sun
MTR Gaming Group Inc. has disclosed that it faces up to $1.1 million in rental costs for Binion's hotel-casino in Las Vegas because Binion's new owner is delinquent on rental payments to two landlords.
The new owner, TLC Casino Enterprises, purchased Binion's from Chester, W.Va.-based MTR in March 2008. This year, citing the recession, TLC has been pressuring landlords at Binion's and the Four Queens hotel-casino to accept rental concessions.
Several landlords have responded with lawsuits against TLC and those are now pending in Clark County District Court.
MTR last month said in a regulatory filing that in connection with its original acquisition of the downtown Binion’s Gambling Hall & Hotel from Harrah's Entertainment Inc., it provided limited guarantees, which reduce each month as rental payments are made on certain land leases.
Some of those expired in March 2008 and March 2009 and two remain in effect totaling about $1.1 million and expiring in March 2010.
In another filing Monday, MTR said that on July 8 it received a notification from one of the landlords that TLC had failed to pay $26,000 in rent that was due July 1; and on July 13, MTR received the landlord's demand that it make the payment pursuant to its guarantee.
"We paid the amount demanded, thus curing the event of default. However, we have been advised that TLC has also failed to pay the $125,000 rental payment which was due on Aug. 3," MTR said.
MTR sued TLC last week in Clark County District Court for indemnification of the rent MTR paid to the Binion's landlord.
TLC has not yet responded to that lawsuit and has declined comment on the issues at Binion's and the Four Queens.
MTR also disclosed Monday that on July 14 it received a notification from a second landlord that TLC had failed to pay $3,900 in rent that was also due July 1.
In its lawsuit, MTR said TLC is in breach of its agreement to buy Binion's.
The lawsuit said that according to the sales agreement, as long as MTR is a guarantor of rent for leased properties, TLC is required to promptly pay all rent and not take any action that will result in claims against MTR.
"Defendant did not live up to its end of the bargain," the lawsuit charges.
Arlington Realty Co. Limited Partnership is the landlord that is supposed to receive rent of $125,000 per month while Isola Trust, managed by Jigsaw Properties LLC, is due $6,720 per month, the lawsuit said.
Discussion: comments so far…
Comments are moderated by Las Vegas Sun editors. Our goal is not to limit the discussion, but rather to elevate it. Comments should be relevant and contain no abusive language. Comments that are off-topic, vulgar, profane or include personal attacks will be removed. Full comments policy. Additionally, we now display comments from trusted commenters by default. Those wishing to become a trusted commenter need to verify their identity or sign in with Facebook Connect to tie their Facebook account to their Las Vegas Sun account. For more on this change, read our story about how it works and why we did it.
Only trusted comments are displayed on this page. Untrusted comments have expired from this story.
No trusted comments have been posted.
Post a comment
Most Popular
- Viewed
- Discussed
- E-mailed
- Photos: Olivia Culpo, 20, of Rhode Island is crowned 2012 Miss USA at Planet Hollywood
- Photos: Derek Hough celebrates 27th birthday at Tabu Ultra Lounge
- More than 43,000 have voted early in Clark County
- US Navy hopes stealth ship answers a rising China
- Firefighters respond to reports of explosion; find vacant building in flames
Everything Under the Sun
Blogs
The Kats Report
Las Vegas Philharmonic says search for new music director to begin 'immediately' (1 Comment)
With Shenandoah project stalled, Wayne Newton hits back legally (7 Comments)
Where does a Playmate play when she turns 21? Vegas! (3 Comments)
Ice Ice Billy
The road to six-toed cats and Mayor Bubba
The Kats Report
David Itkin tells L.V. Philharmonic officials he's on his way out (14 Comments)
Diamond Dave sells it well as Van Halen pours out the power at MGM Grand (2 Comments)
Entering debut at Tryst, Nick Hissom is a model for a rapid rise to prominence (3 Comments)
- Locally owned and independent since 1950; Winner of the Pulitzer Prize for Public Service, best news website in the nation & DuPont Award for broadcast journalism
Must be more green shoots in our economy we keep hearing about.
Tenants and landlords better get together and come up with a rental agreement that business can afford or,
Downtown LV is doomed.
Maybe if Binion's would offers some decent value to patrons, instead of trying to rip off the suckers with atrocities like 6 to 5 "blackjack," it might keep some customers and be able to pay its rent.
It is mind-boggling is that all downtown can really offer is a better gaming value for patrons, but its managers fail to see that. Offer some games that give the suckers a little more time before they lose all their money, and they'll get repeat business the next time the sucker has money. But no downtown casino manager is willing to try it. The stupidity is amazing. The way they are presently being operated, these dumps deserve to fail, though I hate to see downtown fail.
----------------------------------------
Opinions and Commentary on the Gaming Industry: www.TheBearGrowls.com
Hodl the press another thoughful and insightful comment made by the great Neiman. Gosh ever think of actually reading the article and getting an understanding the facts?
WTH is a green shoot?
I really cannot imagine why the property owners and tenants are not getting together and working together in this economy?
Why do lawsuits have to be the answer?
Is cooperation too much to ask for?
Maybe it's just me, but it seems so much more productive to work out Landlord Tenant disputes without lawyers.
It still amazes me that one would spend millions on a property and not buy the land underneath it. Sure, the owners can name their price, but it would solve the problem on into the future. I like Binion's as a classic old casino. Good luck.
binions blows.i went there 4 the steak special and it was inedible.shocking,behind on ur rent and u expect the lndlords 2 cut u a deal.i thnk ill try that w/wells fargo the nex x im runnin a littl short.im shur they'll give n.
Dodgerchuck, this isn't twitter, you can type whole words here, we are newspaper readers here.
I think some of these casinos are headed for persistent trouble moving forward.
The public knows they need money, this knowledge coupled with the aura of the slots being tight in my opinion translates into the reality of a continued downward spiral.
Poor public perception is not good at all.
Oh, I forgot to mention that people do not have jobs and or excess money to throw away..
Add it all up and you have a quadruple whammy.
IMO this is going to take years to resolve.