Las Vegas Sun

March 28, 2024

Gaming board: No more ‘tolerance’ with Vegas company

CARSON CITY – A Las Vegas company that operates in 12 states and 38 Indian reservations is on thin ice with the Nevada Gaming Control Board.

Board Chairman Dennis Neilander says it has been “pretty tolerant” in the past in dealing with Las Vegas Gaming Inc., a publicly traded corporation with Nevada manufacturing and distributing licenses. Neilander warned: “There is going to be zero future tolerance. I’m at the end of my rope.”

His remarks were made Wednesday during the board’s consideration of the licensing of Jon D. Berkley, the president and chief executive officer. But Nielander said his complaints were not directed at Berkley but at the company.

The board has filed two complaints against the company in the past two years and has also issued two show cause orders, which are confidential.

Neilander said Berkley was suitable for licensing. “He has made mistakes but they were unintentional.” He apparently left some information off his application. Berkley apparently was brought in to get the company on the straight path.

State audits of the company found it failed to do background checks of new hires. In complying with state regulations, Neilander said weaknesses exist in every category.

Berkley said he understood the need for compliance and it was crucial to the survival of the industry. He said changes have been made. The director of compliance has been let go and the company is being downsized.

Neilander said once the company is notified of deficiencies “it jumps right on it.”

Anthony Cabot, attorney for the firm, said Berkley has brought in two gaming control board employees to help straighten out the mistakes. Berkley acknowledged there were “great holes” in the company’s compliance efforts.

Cabot said Berkley made some mistakes in his application but he is a “law-abiding citizen” and has substantial experience from a tech company. He said Berkley, in taking over the company, “jumped in with both feet but didn’t realize how deep the water was.” And there were sharks in the water, Cabot added.

In 2007, the company paid a $30,000 fine for issuing a false press release. The company described itself as the operator of Nevada Numbers, a lottery-style keno game. The complaint said that misled the public because lotteries are prohibited by the Nevada Constitution. The board cautioned the company on four occasions not to mislead the public into thinking Nevada Numbers was a lottery.

The complaint by the board said the company, in its press release, also said it had entered into a joint venture agreement with Golden Pond when it had not.

This year, the company was fined $10,000 on a complaint that its bankroll twice fell below the required minimum.

It is not clear whether the two show-cause orders might result in disciplinary action.

Berkley said the company has been a supplier of bingo games and keno systems and it operates Nevada Numbers and Million Dollar Ticket. In recent years, he said Las Vegas Gaming has been focused on deploying a software delivery system that turns a slot machine into a multi-functional unit. Beyond the game, the system offers beverage on demand, videos and audio, restaurant reservations and other services.

Neilander said the company has had financial struggles for “some time.” Berkley said it has acquired $500,000 but conceded “we do require additional capital.”

The board recommended approval for Berkley and the state Gaming Commission will take final action on his license application on June 18.

The board also recommended approval for four men to hold a 33 percent interest in Casino MonteLago in Henderson. They had loaned money to the company and are now converting it to an interest in the casino.

Steve M. Rittvo will hold 12.3 percent; Stephen Szapor Jr. will have 13.6 percent; Scott Fisher will hold 4.3 percent and Ernest E. D-Ambrosio will own 3 percent.

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