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Seattle Casino Files for Bankruptcy

"Owner Gerry Kingen, the restaurateur who founded the Red Robin Restaurant chain and owns the popular Salty's restaurants, said a dour regional economy and decline in tourism bear only a small fraction of the blame for the business.

"The rest he puts `squarely' on competition from tribal casinos, which can run modified slot machines that are illegal in Funsters.

"Funsters' money troubles began less than two months after it opened, according to the state's gambling commission. Since March the commission has charged the casino, located near Seattle-Tacoma International Airport, with 10 violations of state gaming rules, including failure to pay SeaTac more than $157,000 in taxes. Any of the violations, which are awaiting hearings, could result in a license revocation or suspension.

"…The list of more than 200 creditors includes utility companies, restaurant suppliers, entertainers, and state, federal and city tax collectors. The contractor who renovated the casino's building, formerly Charlie Mac's sports bar, is owed close to $909,000, according to the filing.

"The delinquent tax payments are among complaints filed by gambling regulators. They also charged that the casino did not follow appropriate cash-handling procedures and failed to disclose $725,000 in loans that two other owners, Paul Merlino and Jim Harkey, made to the casino.

"The commission is also reviewing the casino's two progressive jackpot games. The commission ordered the games — each offering prizes of more than $11,000 — stopped.

"…Kingen said the casino is bringing in customers, but gross revenues are about a third of what they could be without the recession and tribal casinos…"

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