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Workers at Binion's Horseshoe Face Loss of Medical Insurance

LAS VEGAS -- Hundreds of Binion's Horseshoe workers face the April loss of their medical coverage after the downtown hotel-casino on Wednesday told employees that only some of the property's non-union workers would continue to be protected by the Horseshoe's medical insurance provider.

The loss of medical coverage continues a string of Horseshoe cost-cutting maneuvers industry observers believe may be linked to a shortage of cash necessary to keep the 50-year-old property open.

"This is more bad news for Binion's and more bad news for downtown," said Bill Thompson, a University of Nevada, Las Vegas professor and casino industry expert. "The Horseshoe's troubles reflect the decline of the property since Jack (former owner Jack Binion, brother of current owner Becky Binion Behnen) sold the place to Becky."

Employees learned of the loss of medical coverage through a Wednesday memo issued by the Horseshoe's human resources department.

Eligibility for medical coverage was changed, with most non-supervisory, non-union workers losing their insurance protection.

Table games dealers and slot attendants are two of the job categories slated to lose their coverage, but the Horseshoe has not disclosed the exact number of affected employees.

Becky Behnen, who bought the property from Jack in July 1998, did not return a Thursday phone message.

One long-term Binion's worker said Thursday he was bitter about the changes.

"They already cut the matching money they contributed to our retirement plans and canceled Christmas bonuses," said the casino employee, who spoke on condition of anonymity. "They've slapped us in the face. Becky Behnen is either trying to milk every dime she can get out of the place or she's struggling to stay afloat."

Binion's Horseshoe is currently fighting an effort by the Fremont Street Experience to collect $1.9 million in overdue fees.

State District Court Judge Gene Porter on Monday ordered the Clark County Sheriff to seize the $1.9 million from Binion's Horseshoe, but gave the hotel-casino until Feb. 11 to attempt to block the move.

Horseshoe lawyer Mike Stuhff said Thursday that the property plans to file a request early next week with the Nevada Supreme Court, asking the panel to stop Porter's seizure order.

FSE President Mark Paris noted in a recent court filing that the Horseshoe initially claimed it didn't have the financial wherewithal to pay its past due payments.

"Based upon all the information available to me, I believe that the Horseshoe has no intention of paying the (FSE) any of the past due assessments owed," Paris wrote. "If the Horseshoe's assets are not (seized), the FSE faces a virtual certainty that the Horseshoe will dispose of any remaining monies voluntarily, or that a bankruptcy may be filed before a final judgment is rendered."

The Horseshoe's Stuhff declined to speculate on the impact a $1.9 million seizure would have on the downtown property, but said the casino is solvent and has enough cash to meet day-to-day needs.

Nevada Gaming Control Board Chief Auditor Gregg Gale said state regulators have increased their checks of the Horseshoe's bankroll.

"We stepped up our monitoring of their bankroll requirements," Gale said, noting that the decision to increase checks on the Horseshoe's fiscal health was made at the request of Gaming Control Board Chairman Dennis Neilander.

Neilander did not return a Thursday phone message.

Gale declined to say how much cash the Horseshoe has to keep on hand, citing confidentiality rules, but noted that minimum Las Vegas casino bankrolls range from a "a few hundred thousand dollars to tens of millions of dollars."

The Fremont Street Experience is run by a board made up of representatives from most of the major downtown hotel-casinos.

The monthly assessments paid by the properties are used to retire the debt used to build the Fremont Street Experience video-display screens and supporting structures, and also to pay for marketing Fremont Street events, security, maintenance and administration.

The Horseshoe, an original member of the Fremont Street Experience LLC, was obligated to pay monthly assessments of $81,029 last year, the FSE's lawsuit against Binion's noted. Monthly assessments in prior years were: 1999, $81,657; and 2000, $78,739.

Stuhff blamed the court battles over the FSE debt on several of the mall's managers.

"Some of the people who run the Fremont Street Experience want to put the Horseshoe out of business," he said. "The Fremont Street Experience has launched a PR campaign aimed at destroying the Horseshoe."

Stuhff declined to identify which Fremont Street managers were targeting Binion's.

FSE lawyer Pat Reilly scoffed at Stuhff's fears.

The purpose of the Fremont Street Experience is to revitalize the downtown business community, including Binion's Horseshoe," Reilly said.

Observers said the Fremont Street squabble and the medical and retirement plan cuts are more telling when viewed in context with Becky Behnen's disposal of one of the Horseshoe's most memorable marketing gimmicks, its $1 million display of 100 $10,000 bills.

"They'd pay their (Fremont Street) assessment if they could," Thompson said. "Of course, all of these things are related, including the sale of the million dollars."

After taking over the casino Behnen sold the famous glass-enclosed cash display where more than 5 million free photos were taken of visitors standing in front of the currency.

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