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StumbleBack taxes could cost historic Reno casino its gaming license
Wednesday, June 30, 2010 | 1:50 a.m.
CARSON CITY – The Siena Hotel Spa & Casino, a landmark in downtown Reno, is facing the possible loss of the gaming license it has held for more than half a century.
The state Gaming Control Board has filed a complaint asking for emergency closure of the slot machines at the hotel-casino for failure to pay the gaming tax. As of June 4, the resort owed $89,902 to the state.
The state Gaming Commission meets Thursday to decide the issue.
The Siena, formerly called the Holiday Hotel, opened in December 1956 with only slot machines. Dwayne Kling, author of "The Rise of the Biggest Little City," called it "real first class."
Kling says it rivaled the Riverside, Mapes and Golden hotels, all major resorts in downtown Reno. All of them are now gone.
A year after the hotel opened, table games were installed.
The Siena has fallen on hard times along with other Nevada casinos during the economic downturn.
It faced closure earlier this month because of non-payment of $140,483 in back room taxes over a 12-month period. But a deal was negotiated with local officials to pay the back taxes at 18 percent interest and keep the hotel open. In December, a notice of default was filed by its lender, Bar-K Inc. of Lafayette, Calif.
The nine-story, 214-room hotel fell $400,705 behind on its power bill and was threatened with a shutdown of electricity from NV Energy. An agreement was worked out to pay $50,000 every other Friday beginning June 11 until the back bill was paid -- as ongoing bills are kept current.
The complaint by the control board says the Siena has had troubles since December in keeping the required casino bankroll available to pay off big winners. That problem multiplied when the state Department of Taxation seized $116,000 from the special bankroll account at the Siena to pay off back sales taxes in April.
That left the hotel-casino unable to meet the state gaming bankroll requirement.
Siena officials told the Gaming Control Board on several occasions they hoped to get a short-term loan of $250,000 to $300,000. The hotel did make a $15,000 payment for part of the back gaming taxes on April 24.
The complaint says payroll checks that were routinely cashed by employees at another casino weren't honored by Wells Fargo because the Siena didn’t have enough money in its bank account. The other casino was reimbursed from the casino case at the Siena.
The state Department of Taxation then removed $45,829 from the casino bank account for more overdue sales tax.
In April, the hotel agreed to remove 39 slot machines and four pit games to reduce the necessary state bankroll cash requirements. In June, the Siena closed all of its table games and now awaits its fate at the hands of the five-member gaming commission.
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Does not sound good for this Reno landmark...if the citizens of Reno really care, or are concerned, they ought to donate $2 each to bail it out. Everyone jumping on the bandwagon and kicking the little guys when they are down.
Just another sign of these bad times we are living in right now. The Gaming control board should chill out on them. Pulling their license is not going to get any back taxes paid. I agree with serious, the public and also the big players should pitch in to save this landmark.
Serious and environprotector. How much have you two sent them to save a private business in Reno?
I am betting nothing. Times are tough for all and you both complain about "government" bail outs. Now you are saying the board should back off. That would be another government bail out at tax payers expense.
You want to save this place, shell out. Put your money where your mouth is.
Can the employees sue the state if the state causes them to lose their jobs? Now that would be a fun lawsuit!
environprotector, who I often agree with, wrote:
"...the big players should pitch in to save this landmark."
The Siena's mismanagement has been obvious the last few years. They threw out their big players several years ago and lowered table limits to only $200 before removing table games entirely.
Sadly, this place has among the nicest suites in Reno. I hate to see it go, but it's time for it to disappear. Siena has been terribly mismanaged from the beginning, and suffers from being on the edge of a dangerous slum neighborhood to the east. The obvious solution of erecting a wall on the east and south side of the parking lot to keep the riffraff out never happened.
I'm sorry to say the Casino Death Watch list may soon claim another one. I predicted the demise of this little casino in June 2008, before the "recession." Note it is at the top of the death watch list. I wish the owners had found competent management before it became too late to save this place, but they didn't. RIP, Siena.
Casino Death Watch: http://www.thebeargrowls.com/?p=139
The all knowing LVBear has spoken.
You know why they lowered their table limits then removed their tables? They DID NOT HAVE THE MONEY to back up the high stakes play. Now common business sense will tell you that but you have to use it. You have not been around long enough to know that it was mismanaged from the beginning.
vegaslee, I was there the first week it was open. I have been in the business of casino play for eleven years. Simply not putting up the obviously needed wall (with crash gates for emergencies) was Fatal Mistake #1.
As a Reno native, the Siena is one of Downtown Reno's most valuable assets, we cannot afford to see it close and honestly, I don't think it will. That place has survived so much already, it's ownership, as crazy as they are, are doing all they can to ensure it remains open. We'll see about this but the property does have great potential if someone just gets in there who knows how to run a hotel-casino! It's only been the Siena for not even 10 years yet, I remember when it opened back in 2001 and the place was jam packed.
You guys are missing the obvious...people are getting too smart to play these sucker carnival games or simply don't have the money.
I am one of the politically incorrect and still enjoy smoking. Stayed in this casino and enjoyed it very much. When they no longer made smoking rooms available I no longer stayed there. They made the decision for me.
Is there a loop in the confiscating of back taxes by the State of Nevada. Bubba, smoking and non-smoking doesn't have a lot of weight in this day and age of non-smoking hotels and transient accommodations. If you are going to burn one mattress, burning several mattressess is just another days pay whether in a transient facility or in a health care facility. I am not down on the religious orders of health care facilities, just concerned about the health care that has become an epedemic throughout the states west of the Miss.
When Vegas gets a headache, Reno has a stroke. The economic downturn has hurt the Biggest Little City worse because of our relatively more fragile existence. Were it not for the few resources not tied to gaming, Reno would have way more closures than the many casinos now shuttered and vacant along with numerous other businesses gone.
Not a ghost town yet, but lookin for love props!
I thought everything was fine and there are just lazy deadbeats unemployed, "Hobos" in Heller's words. But wait! I thought Reid and Obama have failed to provide jobs and their stimulus Bill failed.
Therefore what is happening with this hotel is not happening and if it is happening it is Reid and Obama's fault.
There, that's the world according to Angle.
The Siena never did get the wall up or clean up or buy out the sleazy infestation just to the East.
It might have been a good investment. Makeover magic. Wrecking ball. Condos for geezers, artists. Anything but sleazy druggies, sluts and gangstuhs.
This is really too bad. This property is probably one of the nicest in Reno! I hope they can pull through.
They should let all of us players who have been thrown out of there go back and and spread $25-2x$1000 at single deck for a few hours and put them out of their misery. Maybe they could do another match the competitor coupon deal.
Seriously, I'm sorry to see them go, I used to play very politely there and thought their SPA, Hotel, and Restaurants were all some of the best in Reno. Sometimes a basically good product can be done in by a bad business plan and initially Sienna did not have a clue on the marketing side as to who to go after. They totally eschewed local business and only wanted higher end tourists. This was a mistake from which they never fully recovered.
They used to attract all the Sic Bow Hi Rollers, ($10,000 per hand), but now
they play at Wynns.
Fact
I walked in this joint last year while i went to reno/tahoe--it was a freakn dump--the table games were ok, but nothing special and the rest of the property was very poorly run and a dump. I remember waiting in lines a couple times for long periods of time due to employee/management indifference or incompetence--anyways never went back and life will go on without another casino! Reno is much nicer than outsiders perception of it, and if you are a low roller or smaller player I would say you'd get a much better gambling experience in reno than las vegas. Easier to get cheaper rooms/food and comps and not as many drunk 20 somethings with big mouths and little money.
And you don't think the indian casinos have done a number on Vegas? At least Reno doesn't have half built failed casinos everywhere
The owners of the Siena need to WAKE UP and take a good long look at the General Manager Clyde! He blames everything on past management but when his deparment heads tried to step in and explain protocol, and procedures in gaming, they were either fired or got his standard remark ,Shutup, don't you know I'm a "legend" in the business! Ah, what business is that Clyde? Well now you really are a LEGEND!