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Tim O'Reiley

Lawsuit filed over closure of Gold Spike Casino

17 April 2013

LAS VEGAS -- The demise of the Gold Spike Casino downtown came too quickly for some of its employees.

A lawsuit was filed in U.S. District Court in Las Vegas by cocktail server Debbie Camp, who claims former owner Siegel Group Nevada, Inc. and casino operator Fifth Street Gaming did not give a 60-day layoff notice required under the federal Worker Adjustment and Retraining Notification Act. The complaint, which seeks class action status for about 50 employees, does not give a dollar figure for the amount of compensation sought.

A memo signed April 11 by Fifth Street Gaming Chief Executive Seth Schorr announced to employees that the casino would close April 14 “due to circumstances beyond Fifth Street Gaming’s control.” It said that people would be given priority for positions at its other operations and that they were encouraged to apply for new positions at the Downtown Grand hotel in June.

The property was passed to an entity affiliated with Tony Hsieh’s Downtown Project that took over the mortgage.