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StumbleGaming exec John Gaughan sued over business loans
Monday, June 14, 2010 | 5:24 p.m.
John Gaughan
Sun Coverage
Las Vegas gaming executive John Gaughan and one of his companies, Gaughan Gaming LLC, have been sued after allegedly defaulting on loans totaling more than $5.8 million.
A suit was filed in Clark County District Court on Friday also naming as a defendant Michael John Gaughan.
The plaintiff is Multibank 2009-1 RES-ADC Venture LLC, a company that bought loans from the Federal Deposit Insurance Corp., receiver of the failed Silver State Bank.
The suit says that John Gaughan in 2006 borrowed $1 million and that his company Gaughan Gaming in 2007 borrowed another $4 million.
The loan holder claims in the suit that John Gaughan and Michael John Gaughan personally guaranteed repayment of the $4 million loan.
Multibank claims $1.158 million is owed on the first loan and $4.7 million is due for the second loan.
Besides seeking to recover on the accounts held by Gaughan Gaming, the lawsuit seeks an order enforcing the personal guarantees of the Gaughans.
It wasn’t immediately clear if the Michael John Gaughan named as a co-defendant is John Gaughan’s father Michael J. Gaughan, who owns the South Point hotel-casino; or if he is John Gaughan’s brother Mike Gaughan Jr. The plaintiffs couldn’t immediately be reached to clarify that point.
A spokeswoman for Michael Gaughan, owner of the South Point, said he would have no comment on the suit since he does not own Gaughan Gaming LLC.
A message for comment was left Monday with John Gaughan.
According to the Gaughan Gaming website, John Gaughan and his brother Mike Gaughan Jr. are executives there.
John founded Las Vegas Dissemination Co. in 1988 and it has grown to become the largest provider of pari-mutuel wagering and horse racing simulcasts, the website says.
Las Vegas Dissemination Co. says it’s the exclusive pari-mutuel service provider for Nevada's gaming industry and all major out-of-state casinos including Atlantis Paradise Island Casino (Bahamas); Cities of Gold (New Mexico); Elite Turf Club (Curacao); Foxwoods Resort Casino (Connecticut); Meskwaki Casino (Iowa) and The Stables (Oklahoma).
Before joining Gaughan Gaming, Mike Jr. worked at Coast Casinos including managing the Barbary Coast Hotel and Casino through a major remodel and overseeing the construction and opening of the South Coast, now the South Point, the website says.
Gaughan Gaming in April was named in an Alabama newspaper story as being associated with a casino there, the Southern Star; as well as the Native Lights casino in Newkirk, Okla.
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Here we go folks, they are now going after the Fab four. Let the games begin...
all Obama's fault
A strange reply from Michael J. Gaughan, the owner of the the South Point. If it is not him being sued, why not just say so immediately?
I still blame Michael J. Gaughan for convincing his father to sell off the Vegas Club, Plaza and Gold Spike a few years back. That one sale was in my opinion the biggest blow to Downtown Las Vegas.
When he sold the Plaza, Vegas Club and Gold Spike, it was probably one of the better moves he made. Traded in a bunch of old casinos and all of the coast properties for essentially the South Point, which is brand new and has very little or no maintenece at all.
The Gold Spike is now completely renovated and is a much better property than it has ever been. Mainly because of the owner of that property has sunk in million of dollars in upgrades with the rooms and staff.
Much of the problem with downtown is "the old Vegas" feel it has. Let me explain. Why spend 40 dollars on a old run down out dated room on Fremont street when you can essentially get a brand new always clean room on the strip for the same price. Fremont Street for as cool as it is, really has nothing to offer but the overhead light show, a bunch of homeless people, and only one property worth seeing, The Golden Nugget. That place looks and feels like it should be on the strip! If only the rest of the properties would follow suit and spend money, there wouldnt be the problem of having low gaming numbers in the casinos and high vacancy numbers in the hotels. It takes money to make money
The family must have plenty of money so why not just pay these loans off?
KEEP (GOLDEN NUGGET) AND RE-D0 (BINIONS - UNION PLAZA) LEVEL THE REST OF DOWNTOWN, THEN START OVER.
RETRO-FIT BACK TO THE 50'S
mred you need to check yourself into rehab.
Defaulting on loans for a few millions is peanuts. This is good news compared to all the multi-billion defaults I have become accustomed to reading about.
The family must have plenty of money so why not just pay these loans off.
Tell that to the Fertittas.
Lets see here.
They blow up the old hotels on the strip, spend BILLIONS building new ones and everyone complains they blew up old Vegas and now the prices are to high according to most of you.
Now you dog on downtown, being affordable but not the new like the strip has. The Vegas history is still there but you want it torn down and the prices raised to pay for the new casinos.
Very fickle group we have here.
Allegedly! Is not guilty! Remember this is America! These three men mentioned in this article are the most honorable and trust worthy men in Las Vegas! I am a native Las Vegan and think we have more important things going on in the world than to smear a FAMILY'S GOOD NAME!
Where exactly is the Gaughan name being smeared?
two comments jump ot...blaming this on Obama and blamin gthis on Michael Gaughan, Sr. He reated opportunities for his children and due to the economic downturn in general and horse racing in particular, it is his fault. Biggest mistake Mr. Gaughan, Sr. did in my opinion was selling out to Boyd. The Barbary Coast will never be the same, nor will the Orleans or any of the other 'COAST" properties!!
two comments jump out...blaming this on Obama and blaming this on Michael Gaughan, Sr. He created opportunities for his children and due to the economic downturn in general and horse racing in particular, it is his fault. Biggest mistake Mr. Gaughan, Sr. did in my opinion was selling out to Boyd. The Barbary Coast will never be the same, nor will the Orleans or any of the other 'COAST" properties!!
The comments on this news piece are comical. The past is the past. There is probably more to this story.