Friday, July 2, 2010 | 2:05 a.m.
CARSON CITY — In an unprecedented decision, the Nevada Gaming Commission gave a financially troubled Reno hotel-casino slightly more than 24 hours to come up with a $230,000 bankroll to protect its winning customers.
“This is the first time we have done this,” Commission Chairman Peter Bernhard said of the order issued in the case of the Siena Hotel Spa.
The commission conducted a four-hour hearing Thursday outlining the financial difficulties of the resort owned by Barney Ng, who says he has spent $35 million to keep the property open.
The commission suspended the license of the hotel-casino but stayed the suspension until 5 p.m. today for Ng and his management team to come up with the money.
If the Siena fails to post the bankroll, the suspension will go into effect and the casino’s 235 slot machines would be shut down. Table games were previously closed by the casino.
The Siena must also pay an estimated $150,000 in delinquent taxes by July 22 or it could once again face closure.
If the casino’s bankroll subsequently falls below the $230,000, the commission said, all gaming should be shut down within two hours. But the bankroll can be reduced if the casino eliminates some of its slot machines or reduces the amount of its jackpots.
Of the $230,000, the Siena must put $75,000 in a special bank account controlled by the state Gaming Control Board.
Bernhard said the plan gives the Siena one last chance and protects the integrity of Nevada’s control of the gaming industry.
Commissioners Dr. Tony Alamo and John Moran, both of Las Vegas, insisted as part of the decision that arrangements be made for the hotel-casino to pay its back taxes.
They said the casino could declare bankruptcy and the state would have to line up with other creditors to collect its money.
Attorney Gary Gordon, representing the Siena, said talks are under way with the Cal Neva Club in downtown Reno to advance the money for the bankroll. There are talks that the Cal Neva could end up managing the gaming at the hotel that opened in the mid 1950s.
The Cal Neva is looking at some of the paintings in the Siena as collateral for the loan for the bankroll.
Moran questioned why the business doesn’t declare bankruptcy. Ng said bankruptcy “creates a stigma over the property” and would hurt business.
Commissioner Randolph Townsend of Reno said the case “sets a precedent” and “thousands of licensees are watching this.”
Bernhard said he was disappointed Ng would not put any more money into the business. He said Ng already has put up $35 million, and “we’re talking peanuts” to cure the bankroll and back taxes.
During the hearing, several compromises were proposed and Bernhard fashioned the final proposal that was unanimously accepted by the commission.
After the meeting, Ng said he thought the commission’s decision was fair and he was optimistic about securing the finances to keep the business open.
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