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Slots Allowed at Supper Clubs

LAS VEGAS -- The debate over whether Las Vegas supper clubs with a few slot machines in them are, in effect, taverns, probably will never be resolved.

However, the Las Vegas City Council on Wednesday, despite protests from tavern owners, passed an ordinance to allow supper clubs to have five slot and video poker machines on countertop bars or in the bar area. The vote was 5-0 with Councilman Michael Mack abstaining and Mayor Oscar Goodman absent.

"This is in effect making them a tavern," said Ron Drake, president of the Nevada Tavern Association, which represents many of the city's 230 businesses classified as taverns.

Thomas Amick, a local attorney representing Houlihans, one of 33 supper clubs in the city, said there still are "numerous distinctions" that define the two types of businesses and that taverns would not want to face the restrictions on supper clubs. One restriction, for example, is that supper clubs must have a minimum 125 tables in their restaurant area.

Other major differences:

Supper clubs are restaurants, such as Outback Steakhouse or Houlihans, that have small bars but derive most of their income from the sale of meals. Taverns are primarily bars that make most of their money from liquor sales and are allowed to have up to 15 slot machines.

Supper clubs pay $40,000 for initial liquor licenses. Tavern pay $60,000. Supper clubs pay a $1,600 annual renewal fee to retain liquor licenses. Taverns pay $2,400.

Supper clubs are required to be 400 feet away from a church or school. Taverns must be 1,500 feet from schools, churches and each other.

The bill passed Wednesday requires each supper club to apply for a special use permit.

That requirement not only gives the city the right to deny gaming machines based on what is found during a required police background check, but also allows the city to deny an application if there are too many supper clubs with slots in an area.

The new ordinance also prohibits gaming at proposed supper clubs in the "entertainment overlay district" just east of the non-gaming Neonopolis entertainment center.

Earlier this year, the council created the district to revitalize a run-down six-block section of downtown bounded by Ogden Avenue, Carson Avenue, Las Vegas Boulevard and Eighth Street.

Eateries with some form of live entertainment in that area can get limited liquor licenses under greatly relaxed rules, including waiver of the 1,500-foot distance requirement between bars.

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