SEARCH NEWS:

 

Nevada Supreme Court Blocks Cash Seizure at Binion's Horseshoe

LAS VEGAS -- The Nevada Supreme Court has at least temporarily blocked a District Court judge's order authorizing the seizure of $1.9 million from the Binion's Horseshoe's cage to cover overdue payments to the Fremont Street Experience pedestrian mall.

The seven-member Carson City panel issued a Friday order blocking a January directive from State District Court Judge Gene Porter that allowed the FSE to ask the Clark County sheriff seize the full amount from Binion's Horseshoe as soon as today.

Lawyers for the downtown hotel-casino on Thursday filed a petition with the Supreme Court, asking the panel to overturn Porter's ruling because they claim the Fremont Street Experience's operating agreement violates state law.

Horseshoe lawyers claimed that allowing the seizure of the funds would jeopardize the ability of the casino to stay open, noting that the removal of $1.9 million from the casino cage would place the casino's bankroll below its state-mandated minimum of $1.2 million.

"The Horseshoe will suffer irreparable harm the moment its cage is attached," Binion's lawyers noted in their application asking the court to block the seizure. "If the amount in the cage drops below $1.2 million, (the Horseshoe) runs the risk that the Gaming Commission will automatically shut its casino down."

The court allowed FSE lawyers 20 days to respond to the Horseshoe's claims, and blocked Porter's seizure order until a decision on the Horseshoe's claims is made.

Nevada Gaming Control Board Chairman Dennis Neilander said he had been advised of the decision blocking the seizure.

He declined to say what the Horseshoe's minimum bankroll requirement is, but noted that he was monitoring the legal dispute between the 50-year-old hotel-casino and the Fremont Street Experience.

"Our agents have been over there several times recently," Neilander said. "We're monitoring the situation, paying particular attention to the bankroll requirement.

"We want to make sure people are paid when they gamble, so the bankroll minimums are very important."

Horseshoe lawyers emphasized the economic importance of the property as they warned about the fallout from a seizure and a likely closure.

"The Horseshoe is the 15th largest privately-owned company in the State of Nevada, employing over 1,700 employees on an annual payroll of over $38 million," the court filing noted. "If this Court does not (block seizure of the money from) the Horseshoe's cage...the Horseshoe would lose over $260,000 in revenues daily and be forced to shut its doors."

Horseshoe court filings initially claimed that the property was unable to afford the overdue payments, but Binion's lawyers have lately raised a handful of reasons why the 50-year-old hotel-casino shouldn't have to pay the assessments.

They claim that the FSE's organization and actions violate federal antitrust law, state law and city ordinances, and the lawyers also argue that the Horseshoe's dues are unfairly large compared with those paid by competing downtown properties.

< Gaming News