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Inside Gaming Column: Deadline Nears for Las Vegas Hilton Bidders

1 December 2003

Monday is the deadline for final bids to buy the Las Vegas Hilton, according to sources close to the deal. American Real Estate Partners, a Carl Icahn company, is not on the short list of final bidders despite reports to the contrary, sources said. Four other companies are in the running, although owner Park Place Entertainment Corp. has to evaluate bids, any of which could be chosen. Park Place also could start over or decide to hold on to the landmark if it fails to get an acceptable bid.

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How do you suppose Lance Malone won the Subway franchise at The Orleans? Coast Casinos Chairman Michael Gaughan says: "It wasn't a juice deal." The former Clark County commissioner and current indictee on federal charges of attempting to bribe a city official came by and just asked, Gaughan said. "I felt kinda sorry for him." Gaughan gets a cut of Malone's revenue and has the right to buy the lease back. "I think he's in trouble," Gaughan understated. If Malone is convicted, he'd go on the list of excluded vendors and have to give up his franchise.

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At the recent Nevada Gaming Commission meeting, Nevada Resort Association President Bill Bible danced awfully close to the new third rail of Las Vegas politics: strip clubs. Referring to a provision in the new live entertainment tax, Bible said the measure was meant to capture new taxes from relatively untaxed strip clubs, not casinos. After briefly describing the tax's intent, Bible caught himself. "I have to be careful," Bible said. "I'm not very familiar with these establishments." It sounded like a challenge to the press, whatever its merits.

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Evidently, President Bush picked up a cue from Mayor Oscar Goodman, who has proposed legalizing prostitution downtown. The two are singing from the same sheet of music. A hapless speechwriter had Bush, on his swing around the Southwest last week, say: "There's a lot of Johns around America who this bill will help in a very positive way." The line was supposed to illustrate the plight of a senior citizen in the audience and the importance of the recently passed Medicare reform package. Oops.

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The little casino in the new Westin Casuarina Hotel and Spa that recently opened in the former Maxim could use a little help from a gambling design professional.

Guests looking for a little upscale relaxation are greeted by a combination of "Beverly Hillbillies" slots and a bunch of penny machines. It doesn't seem like the right cup of tea for the company's loyal customers, who've been enjoying the grandeur of Westin La Paloma in Tucson, Ariz., or the Westin Kaanapali on Maui, Hawaii.

The Inside Gaming column is compiled by Gaming Wire Editor Rod Smith. You can contact him by phone at (702) 477-3893, fax (702) 387-5243 or e-mail at rsmith@reviewjournal.com.

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