Gaming Commission vote makes Blake Sartini state’s largest slot-route operator

By Cy Ryan

Thursday, Feb. 23, 2012 | 4:07 p.m.

CARSON CITY - The state Gaming Commission voted today to allow Las Vegas gaming figure Blake Sartini to become the largest slot-route operator in Nevada.

Sartini and his Golden Gaming will acquire from Affinity Gaming 8,500 slot machines at 650 locations. The deal also includes the acquisition of Terrible's Lakeside casino and Terrible Town in Pahrump, giving the organization three casinos. It would give Affinity three casinos in Colorado in return for its Nevada holdings.

Commission Chairman Peter Bernhard questioned Sartini's attorney Michael Alonso at length over whether the company is getting too large in Nevada. The commission must watch that Sartini not "dominate" the market in purchasing, employment and changing the odds on slots and games.

Bernard said that in Pahrump Sartini would have 100 percent of the table gaming revenue and 75 percent of the slot machine revenue.

Addressing questions about Sartini dominating the market, Alonso said there are a significant number of slot route operators in the state and the businesses where the machines are located can always switch to other slot operators. Meanwhile, the acquisition of the two casinos in Pahrump will give the Sartini group 500 employees in a town of 38,000, Alonso said.

After the questioning, Bernhard said if Sartini tried to change the odds on the slot and table games, they would alienate their customers.

The vote to approve the deal came after the Corrigan family, owner of the Roadrunner chain of bars/restaurants, tied to convince regulators that they have evidence of fraud by Sartini uncovered in their lawsuit against him for breach of contract. Dennis Kennedy, attorney for the Corrigan family, asked the commission to delay action on the application and for the state to request court documents that show Sartini has not been honest in dealing with government officials.

Commissioner Tony Alamo said the issues raised by the Corrigans were currently a civil matter and not before state authorities. He said the Control Board would examine the details as they emerge from the lawsuit scheduled for trial in July.

"Let the courts figure this out," said Alamo. If the allegations prove true, a state disciplinary complaint can be filed against Sartini and his companies, he said.

Commissioners took offense at remarks by Kennedy and Corrigan family members that the control board, the investigative arm of the commission, did not do its job in reviewing Sartini's application.

Bernhard said the allegations against Sartini are "very serious" but the commission wouldn't get in the middle of the court fight. He said the vote by the commission should not be read as the state taking a position on the allegations.

Sartini said he intends to keep the employees at the two Pahrump casinos. Asked about his company finances, Sartini said it will be able to meet its debt even without large upswing in the economy.