The chairman and the pita
February 27, 2008 | 3:35
pm
The most powerful name you have never heard in Las
Vegas: Dennis K. Neilander. Neilander actually is based in northern
Nevada, not Vegas. But that does not matter: He rules in Vegas because he is the chairman of the Gaming
Control Board. It is the Gaming Control Board that is charged with policing the
holders of Nevada's most precious treasure: an unrestricted gaming license. And
Neilander and the board have a lot of discretion in how that is done.
So, it was not lightly that I put in a call to the chairman's office to ask
about the Gaming Control Board's view of the IRS investigation into
nightclub company properties operated by Pure Management Group but located
within licensee casino operators MGM-Mirage (Luxor) and Harrah's
(Caesars).
I waited all morning for his call to tape the interview. But eventually
hunger got the better of me and at around 2 this afternoon I ordered to-go food
from Crazy Pita at the District at Green Valley Ranch. As I was walking out of
the store, my pita secured, the chairman's assistant reached me on my cell and
asked if I was available to speak to Chairman Neilander. There is only one
answer to that question: yes.
So, this is from notes taken as my pita cooled.
Neilander is aware of the IRS visit to Pure and LAX. And, like me, he could
not recall a time when the IRS has performed such a mission inside a licensed
casino since the days of the mob. The Gaming Control Board exists to make sure
Vegas does not revisit what is usually referred to more euphemistically as the
old days.
That said, Neilander told me the Gaming Control Board is monitoring the
situation but, he added, not actively investigating it: "As far as we know there is
no gaming issue," he said.
It is Neilander's understanding that both MGM-Mirage and Harrah's are
responsible for investigating, monitoring and controlling nightclub tenants.
Should the IRS investigation result in accusations of wrongdoings involving
money within the casinos, however, the Gaming Control Board will definitely have
questions for the host resorts and expect there to be answers.
I asked Neilander how aggressive he expected resorts to be in terms of examining how tenant clubs are operating now, in the aftermath of the IRS
investigation into Pure Management Group. But Neilander refused to draw a
distinction between before and after the IRS investigation. Neilander reminded
me that the resorts were responsible for doing due diligence before granting leases
to clubs and for monitoring the clubs during the lease.
If the IRS investigations reveals that there were problems with how those
operations handled cash, Neilander and the Gaming Control Board would be deeply
concerned.
And so Vegas continues to hold its breath as I toss my pita in the
microwave.
The mere fact that he's commenting on the issue will have a serious effect.
"I've got my eye on it" is a whole lot.
If you're getting rich because you have a gaming license, you don't even want to come close to ANYTHING that might result in its loss.
Posted by: Slothrop | February 28, 2008 at 10:51 AM