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February 12, 2012

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Struggling Reno casino comes up with cash to avoid closure

By Cy Ryan (contact)

Friday, July 2, 2010 | 7:34 p.m.

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CARSON CITY — The struggling Siena Hotel Spa Casino in downtown Reno has cleared the first hurdle to remain open, at least through the busy July 4th holiday weekend.

Dennis Neilander, chairman of the Nevada Gaming Control Board, said the resort posted a $230,000 bankroll by a 5 p.m. Friday deadline.

The Nevada Gaming Commission voted on Thursday to suspend gambling at the Siena unless it came up with the cash to pay out winning players by that time.

“Agents have found they (the Siena) have excess cash in the cage,” said Neilander. “They’re good for the weekend.”

The board monitors the Siena daily to make sure it maintains an adequate bankroll. If it doesn’t, the plug will be pulled on its 275 slot machines. The casino previously closed down its table gaming.

For the last six days in June, the casino was unable to meet the bankroll requirements. It was called before the gaming commission in an emergency meeting to suspend its gambling license, but a last-minute compromise was worked out.

The property, formerly called the Holiday Hotel, has had a gambling license since the mid 1950s.

Siena officials told the commission Thursday it was negotiating with the nearby Cal-Neva Club to put up the money for its bankroll. Artwork in the Siena would be used as collateral.

Neilander said he did not know where the $230,000 came from.

The commission also ordered the Siena to pay its back gaming taxes estimated at about $150,000 by July 22. On that date, the commission will meet again and wants the hotel-casino to present a plan on how it intends to survive. It must also disclose all of its outstanding debts.

In addition, the Siena must make a $50,000 payment next Friday to Sierra Pacific Power Co. to keep the electricity on. It was $400,000 in arrears to Sierra Pacific but worked out a payment plan.

It paid $60,000 in delinquent room tax but still owes about $150,000 to the local convention authority.

Siena officials say they have been negotiating with the Cal-Neva to take over management of the casino. If that falls through, other management companies have expressed interest in running the club.

Owner Barney Ng said he has put in $35 million to keep the property open but doesn’t want to invest any more money.

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