Facebook
Fark
Digg
Reddit
Stumble
Saturday, July 25, 2009 | 2 a.m.
Sun Archives
- High-roller fights law regarding collection of gambling debts (7-17-2009)
- Grand jury indicts high roller in $14.7M casino debt case (4-29-2009)
- High roller posts $1.5 million bail to avoid jail stay (2-18-2009)
- Philanthropist allegedly owes $14.7 million to Rio, Caesars (2-4-2009)
- Feds press probe of ex-Fry’s executive (2-2-2009)
- Casino profile details luxurious lifestyle of former Fry’s executive (1-14-2009)
- Feds looking into high roller’s debt payments (12-31-2008)
Harrah’s Entertainment has retained a national law firm to assist in an internal investigation into allegations that two of its casinos supplied a high roller with a steady flow of alcohol and drugs as he racked up tens of millions of dollars in gambling losses.
Attorneys for the gambler, Nebraska philanthropist Terrance K. Watanabe, 52, are cooperating with the Harrah’s investigation, sources said.
Watanabe is facing criminal theft charges in Las Vegas for allegedly failing to pay $14.7 million in markers at the two Harrah’s properties, Caesars Palace and the Rio.
But the allegations that Watanabe was kept intoxicated while he gambled, first reported in a May 18 Sun story, are threatening the district attorney’s prosecution of Watanabe and could land the world’s largest gaming company in hot water with state gaming regulators.
The allegations are particularly troubling for Harrah’s because it has held itself up for more than a decade as an industry leader in promoting responsible gambling.
Lawyers from the Chicago office of the national law firm Jenner & Block were in Las Vegas at Harrah’s request this week to question witnesses who could corroborate Watanabe’s allegations.
A spokesman for the firm’s Chicago office did not respond to Sun inquiries Friday, however.
Harrah’s spokesman Gary Thompson would not confirm or deny that the company is conducting an internal investigation.
But Thompson did say: “We have in the past hired outside law firms to investigate serious allegations that have been brought against any of our properties.”
One of Watanabe’s Las Vegas lawyers, David Chesnoff, brought the names of several witnesses to the attention of the district attorney’s office days before the office obtained an April 29 indictment against Watanabe.
In a seven-page letter, obtained by the Sun in May, Chesnoff alleged that the two Harrah’s casinos kept his client in such an incoherent state during late 2007 that Watanabe was “incapable of forming the criminal intent” to avoid paying the $14.7 million in markers.
Chesnoff alleged that Watanabe was often drunk at both casinos and — in the case of Caesars Palace — prescription painkillers were provided by casino employees as his gambling losses mounted.
According to the letter, three casino employees who spent a lot of time with Watanabe in 2007 were prepared to testify that they observed him slurring, having trouble walking and even falling asleep at the gaming tables.
This week, Chesnoff provided the Jenner & Block lawyers with two of those witnesses to interview, sources said.
Chesnoff, who is helping Watanabe fight the criminal charges, declined to comment Friday. “I’ll do my talking in court,” he said.
Nevada Gaming Control Board Chairman Dennis Neilander also declined to comment on the allegations swirling around the Watanabe case.
Gaming regulations prohibit casinos from allowing “visibly intoxicated” players to continue to gamble, Neilander said.
If casino companies substantiate allegations of wrongdoing at their casinos, they generally report it to the Control Board, and the board opens its own investigation, Neilander said.
The district attorney’s office has been informed that Harrah’s is conducting an internal investigation into Watanabe’s allegations.
District Attorney David Roger declined to confirm or deny that Friday. He also declined to comment on what effect the allegations, if found to be true, would have on Watanabe’s prosecution.
If Harrah’s officials had been more forthcoming about the allegations when they asked the district attorney’s office to pursue the criminal case, however, the office might have had second thoughts about filing charges. The allegations could make it more difficult for the district attorney to persuade a jury to convict Watanabe.
In court papers last week, Chesnoff said his client’s prolific play made him “Harrah’s No. 1 customer” and “one of the most noteworthy gamblers in the history of Las Vegas,” bringing in “hundreds of millions of dollars” in revenue to local casinos.
Watanabe’s play amounted to 20 percent of Caesars Palace and Rio revenue in 2006 and 2007, the lawyer said.
The $14.7 million in markers Watanabe is accused of owing pales when compared with Watanabe’s overall gambling losses, which added up to $112 million at Harrah’s casinos in just 2007, Chesnoff said. All but the $14.7 million was paid back to Harrah’s, he said.
Watanabe’s wealth stems from the sale of the Omaha-based Oriental Trading Co., a wholesale novelty importer he ran from 1977 until 2000.
Just as distinctive as it's famous neighbors Caesar's Palace and The Venetian, Harrah's Las Vegas has been entertaining guests since 1973. The 87,700-square foot casino is filled with 1,520 slot machines and 107 gaming tables. Outside the casino, guests are able to experience fun in a street-fair atmosphere at the Carnival Court, an outdoor lounge with live entertainment (including the bartenders), food stands and outdoor shops.
At Harrah's comedy is King, and that has never been more apparent then the comedy acts of Rita Rudner, the Mac King Comedy Magic Show and the Improv Comedy Club. After the show, guests are more than welcome to laugh at their friends at The Piano Bar, famous for its dueling pianos and karaoke. Most recently, Harrah's added tribute show "Legends in Concert" to its list of entertainment.
Restaurants like Ming's offers Asian cuisine, while Ruth's Chris Steak House offers guests fine steaks and fresh seafood. Toby Keith's I Love This Bar is a country-themed bar with a restaurant, live music and the occasional appearance from Keith himself.
Jeff German is the Sun’s senior investigative reporter.
How can anything be called responsible gambling when one man represents 20% of all play in a casino. Amazing.
If you eliminate problem gambling, Las Vegas becomes a ghosttown. 80-20 20% of gamblers lose 80% of the money.
Why is Harrah's investing itself? Shouldn't the district attorney being doing that?
Pretty soon, no drinking in casinos too. Just wait. Or at least no free drinks.
It is unconscionable that a casino would be so greedy as to recognize and encourage a compulsive gambler.
I know all you libertarians will yell "personal responsibility!" compulsive gambling is an addiction - just like alcoholism and drug addiction.
To report 20% of the earnings of a casino from one person?
What does that tell you about that casino? They know very well this guy has a problem.
Then to have the gall to go after them for losing after he supported them for a year?
The casino deserves to be investigated-they encouraged his addiction and when he couldn't pay anymore they sued him.
Las Vegas is a nasty town devoid of humanity when it come to the "business".
I absolutely agree with the last post.
Very well said, cnev.
Its time to end the Scam of using our tax dollers to use the DA office to go after bad credit. Can a Bank hire the DA to arrest my neighbor who is behind in his house payments? I have read that the FBI might be cleaning up this mess real soon.
As the spirit of the Mob rises up, they say to one another, "And they talked about us. Let's go back to hell".
The gambling dolt should take a mirror and place it in front of himself then look into it and ask who's fault is this????? As Pogo so aptly put it-----"We have met the enemy and he is us." Nobody held a gun to his head and forced him to gamble. It was his decision. Therefore his responsibility to control his actions.
One more reason why casinos must be required to pursue debts in civil court, just like you and I. Debtors prisons are "lawful" only in Nevada.
Collecting private debts through criminal process is corrosive to democracy.
Personal responsibility. This rich dude has no one to blame but himself. No one forced him to gamble, no one force fed him booze or pills. My guess he is cocky, has an ego the size of inifinity and an ******* to boot and thought he could get away with walking on all that money owed to Harrah's because he is rich! And then use the lame exuse they plied him with booze and pills and he didn't know what was happening. Please.....
Maybe we can all use that excuse next time we lose our money at a casino.
PS Glad to see Harrah's brought in the cut throat attorneys from Chicago!!! I used to work at that firm and their success rate is 100% in winning cases.
The unfortunate thing is that in a good economy, the 14 million would have been either deeply discounted or written off completely by Harrah's based on his status as their number one customer, as well as the enormity of his overall losses. They love you until the company is on the ropes, then your net worth is fair game. Sad, but true. High rollers beware!
I like how this guy has only been described as a "philanthropist", which I assume means he became independently wealthy from some source (or inherited it) and doesn't work. So, if he's that rich, there must be plenty of remaining assets for Harrah's to go after. And surely he realizes Harrah's is going to investigate everything they can about him to find info to make him look like an idiot, at least in the court of public opinion if nowhere else. I think he's going to realize he probably should have just paid it (and prob should still settle).
Many Gambling establishments have telemarketers that call up high rollers and invite then out with freebees and comps to hook them in again. This is done on a bonus basis for the telemarketer, if they lose allot you get a big commission.
Subpoena the marketing records of the casino.
What kind of novelties did he make?
lakeside21 A "philanthropist" has nothing to do with how one attains their wealth. He gave to charities and this is what makes him a "philanthropist". Are you aware that his arrest and felony charges are an attempt to "go after" his wealth? In the end Harrah's will look like the idiot for not following Nevada gaming rules that forbid the behavior they engaged in.
"Many Gambling establishments have telemarketers that call up high rollers and invite then out with freebees and comps to hook them in again. This is done on a bonus basis for the telemarketer, if they lose allot you get a big commission"
Those are NOT telemarketers. They are either the "casino hosts" or someone in the Guest Services or Marketing areas of casino operations. They are employees of the casino. That is their job - and they don't just contact high rollers. For us low rollers - we get that in the form of solicitations in the mail for a 2 for 1 buffet or a free gift or even $5 in free play. It is the marketing strategy of every casino. Yes, they are trying to sell a product, but using the term "telemarketers" brings to mind those who sit in a large room and start calling the computer-generated telephone numbers and disturb you during dinner time. BIG difference.
Re: Thumper.
DING! DING! DING! Stop the contest, we have a winner, folks.
Great post.
Harrah's and other gaming companies should just ban this guy for life and let him off the hook. He accounted for over 20% of their revenues...and now they are trying to put him away...that is bad form.
A fool and millions from his dad's business are soon parted.
cnev-
How very true. Actually, it's even worse because Harrah's got this guy intoxicated. And come on, we all know that our decision-making skills fall off the wagon once we're drunk!
If this allegation is true, then Harrah's needs to pay some serious fines and tighten up its ship. Of we're talking about "responsibility", then why shouldn't we consider the gaming companies' responsibility to respect the law and kick the drunk people off the card tables?
vegasexec-
Yep, this does nothing but scare away other high-rollers. Why would they ever gamble in a place that may end up getting them drunker than skunks before stealing their money and charging THEM with a crime? Yeah, like I'll ever play poker at a Harrah's casino... (NOT!)
I am shocked that Harrah's would pursue a $14 million dollar debt when the player already lost $112 million in one year alone. What happened to discounts in order to keep a player loyal. It is not that casinos do not provide discounts and write offs; this is casino operations 101. Bill Harrah would roll over in his grave! Gosh, how greedy should Harrah's be; obviously they are not for 'middle america' as much as they claim to be. Harrah's is the Ramada of the Casino Industry and should be happy they ended up with Caesar's.
If someone is drinking of their own free will and gambling, well okay, however if that person is getting intoxicated and continues playing, the resort should legally shut him down.
Realistically if someone is drinking and losing, why would they shut him down?
I have never heard of it happening.
My Father used to drink and lose good amounts of money in the fifties. This contributed to the downfall of his relationship with my Mom after seventeen years of marriage at the time.
I would acknowledge my Father was not being responsible, and he was alcoholic. That was the best he could do at the time.
This is a huge conflict of interest by the resorts, especially in this day and age.
Between the nightclubs and this stuff, I think Las Vegas is getting caught up in it's own messes.
I think the regulators have been way too hands off generally.
I hope they continue to lean in and take care of their mission.
denro-
"My Father used to drink and lose good amounts of money in the fifties. This contributed to the downfall of his relationship with my Mom after seventeen years of marriage at the time.
I would acknowledge my Father was not being responsible, and he was alcoholic. That was the best he could do at the time."
That's horrible. And honestly, that's why Nevada gaming laws were tightened. This is why Harrah's Entertainment should be ashamed of itself.
When a gambling addict gets drunk, this is what happens. They knew better, so they shouldn't have even allowed this to spiral downward like it did. Between this and the Prive shutdown at Planet Hollywood, these latest scandals aren't helping Las Vegas' image.
Thumper, when I say "lean in" I am saying "keep heads rolling" like in the PH/Prive Matter.
I agree it should be the strongest enforcement possible. If licensees are not operating right, they should lose those licenses
As far as the D.A. Mr. Rogers, I have to admit this is a person I wasn't familiar with until the last few weeks.
The system here unfortunately has been going on for a long time.
Who and what can make a difference? What does it take?
adtleft,
I agree totally.
I love Las Vegas because I have been coming there since the El Rancho, Last Frontier, Desert Inn days, from 1950 on.
My Father was involved in building the Desert Spa across from the Stardust in 1955. That's a whole other story.
I am not enamored with the way Las Vegas has been in these recent years with the clubs and reckless behavior.
It is a town however that has been reinventing itself from day one.
.
Gambling houses are one of the oldest cons in the world.
It is one thing to gamble a few bucks for laughs but only idiots think they can gamble for a living. There are a few poker players that can do it and I am sure that there a few people that bet on sports that might generate a tiny profit.
But most full-time gamblers lose their shirts, shoes, cars, houses...eventually.
That is why is the industry needs to be heavily regulated and taxed.
When they say, "What happends in Vegas. Stays in Vegas." They are refering to your money.
The town is built on one of the biggest frauds in the world and is only second to banking in terms of cons.
Harrah's is in trouble on this, or they wouldn't be bringing in the "heavy hitters." I think this is gonna cost them.
HOLY HARPOON, BATMAN!!!
"Lawyers from the Chicago office of the national law firm Jenner & Block were in Las Vegas at Harrah's request this week to question witnesses who could corroborate Watanabe's allegations."
To the Batpoles!!
Without getting into the merits of the specific case here, some readers may be new to Nevada and I'd like to clarify some misunderstandings. The Bad Check Unit, does not follow the typical process of criminal cases. The original statute created a process whereby the victim/citizen submits a case directly to the District Attorney's Bad Check Unit for collection, and if unsuccessful, for prosecution of those cases where there is probable cause that a crime was committed.
Now the argument that the District Attorney's office has better things to do with the taxpayers money highlights this misunderstanding. BY LAW, no taxpayer funds are used by the Bad Check Unit. The law REQUIRES that the unit be 100% self sufficient, and the full cost of the Bad Check Unit operations are borne by the bad check writer him/herself. The victim doesn't pay for the prosecution of the case nor does the taxpayer. The convicted criminal PERPETRATOR pays for it through the fees the state legislature imposes. All employees in the Bad Check Unit are paid for out of the fees that are collected from the bad check writer. And it should be noted that, that unlike many other areas of the country, in Clark County the Bad Check Unit isn't spending a lot of time chasing people who wrote a bad check for $50.00 at the supermarket to feed their kids, but people who've written checks for tens and even hundreds of thousands of dollars for what amounts to nothing more than discretionary entertainment.
Lastly consider the good work the Bad Check Unit does for the public. Frankly, it's a great deal for the taxpayer, since they get the benefit of having bad check writers pay the cost of their own prosecution. The victim casinos also get the benefit of criminal restitution paid back to them. Don't forget when people gamble and don't pay back their casino debts to those big, bad, evil casinos, those loses affect the casino workers who are employed by the casinos. Those beds don't get made for free. The maids have to be paid a wage. The drinks don't pour themselves, the cards don't get dealt by themselves, and the myriad of increasingly new and sophisticated gaming machines aren't grown on trees. It also penalizes the overwhelming number of visitors to our community who pay their bills but enjoy fewer benefits such as comps and lower prices because of the expense of bad debts. And most importantly, bad check writers in the casinos are stealing from taxpayers and effecting the quality of our state services and our schools. I hope this helps everyone to see how the process actually works.
Ross you are correctly on many points.
But we all know it is just a business extending a line of credit to a customer.
There is no other business that I know of where the DA goes after the customer when he does not pay back the money that he borrowed on a line of credit. That in a normal world would be a civil matter and not a criminal matter.
But I am not upset about it. Gambling is a con. We, the people of Nevada and the USA, have given sanction to businesses to run that con. It is not a big deal if we let the DA support the con's business activity.
It is life.
We accept it.
The people who gamble are big girls and boys. If they are dumb enough to lose thousands and millions in games that by the pure law of math are geared for them to lose then that is their stupidity.
Yes, everyday Nevada takes advantage of the stupid.
We are all part of that corruption....like it or not.
The world keeps spinning.
We need the DA to be the knee breakers to collect the con businesses' outstanding receiveables.
It protect the jobs of the workers who work for the con businesses. It protects the revenue of the government that lives off the con business activity.
Removing the money from the dumb and giving it to the smart can not be all that bad.
Gambling is a brutal business.
<<I am shocked that Harrah's would pursue a $14 million dollar debt when the player already lost $112 million in one year alone. What happened to discounts in order to keep a player loyal. It is not that casinos do not provide discounts and write offs; this is casino operations 101. >>
You may be jumping to conclusions that the casino hadnt already given him rebates on his losses. In that event he essentially acted as if he wasnt content with the size of the rebate he got, and decided his own amount.
If Watanabe's allegations of being too intoxicated to play is true, I wonder if it would be a stretch for his defense team to try and make the argument that most if not all of Watanabe's markers are also non-binding, as one must be at least 18 and mentally competent (e.g., not under the influence of drugs or alcohol) to enter into any kind of contract.
Besides how difficult can it be to show what the estimated blood alcohol level of their client was, given his body weight and the servings of alcohol that was served to him from casino security footage. If not those security tapes should be subpoenaed immediately.