September 24th, 1999
Nevada Regulators Move Against Cartoon-themed Slot Machines
By David Strow
Las Vegas Sun
Expressing rising concerns about the appeal of new slot machines to children, the Nevada Gaming Commission voted Thursday to begin hearings on potential new regulations that could ban cartoon characters from new machines.
In early language suggested by the Gaming Control Board, a new regulation would “prohibit themes for gaming devices typically associated with children, to include children’s television programs, animated cartoons, and children’s books and games… .”
However, Chairman Brian Sandoval cautioned that no new regulations have been proposed; rather, the Control Board is now authorized to begin public hearings and examination into the issue. Meetings will begin in mid-October, and the board will hold discussions with industry officials to try to find possible solutions.
“When I’m in a grocery store with my two kids and they see that,” said Sandoval, pointing to International Game Technology’s new “Pink Panther” slot machine, “they’re going to go right to it. That concerns me.
“I think this is an issue that’s ripe for consideration.”
Sandoval said one of his biggest concerns was that the cartoon-themed machines could start appearing in restricted locations, such as grocery stores and drug stores.
But Commissioner Arthur Marshall noted that even hotel-casinos, now catering more and more to families, created problems with the new games.
“We have families that come onto those casino floors, and they will be subjected to the images on those machines,” Marshall said.
Steve DuCharme, chairman of the Control Board, called the proposal an attempt to look at the “Joe Camel issue” in the gaming industry. Joe Camel, a cartoon character used in cigarette ads by R.J. Reynolds, was banned by federal regulations prohibiting ads that appealed to children.
“Once a company submits these devices, they’ve already spent a considerable amount of money developing it,” DuCharme said. “(Current regulations) don’t give any guidance or direction to the manufacturer.”
But Brian McKay, senior vice president and general counsel for IGT, argued that potential regulations against the industry were unnecessary at best, unconstitutional at worst. IGT introduced several new animation-themed games recently, including games based on the Pink Panther, “The Addams Family” and “South Park,” and it says such themes are necessary to draw a younger crowd toward slots.
“We too recognize the need not to encourage any form of underage gambling,” McKay said. “But no one under the age of 21 is allowed (on casino floors). We don’t create these games for children ... because they can’t play them.
“Animation appeals to anyone from 2 to 85. But if the game was too juvenile, adults wouldn’t play it.”
Jack Godfrey, an attorney representing the Nevada Resort Association, agreed that underage gambling needed to be controlled.
“But we are not aware of any emperical evidence that might support the need for new regulations,” he said.
Commissioner Augie Gurrola, the sole dissenting vote during the hearings, agreed.
“I feel that the Gaming Control Board now has the authority to monitor what’s going on and direct it in the proper direction,” Gurrola said. “If I had to vote on this today, I would vote in the way of leaving things the way they are.”
In other matters, the commission:
* Approved a $120,000 fine against Coin Castle Casino and Sassy Sally’s, settling a tip-hustling investigation that began in March.
Acting on several complaints, investigators for the Gaming Control Board found in March that change persons at the two Fremont Street casinos were soliciting players for tips. Investigators were also steered toward machines that change people said were “hot,” or “ready to hit.” The settlement also calls for the properties to reimburse the Control Board $16,300 for investigation expenses.
Herb Pastor, owner of the properties, told the commission that he had adopted a “zero tolerance” policy to such practices. He testified that after the allegations came to light, he fired 105 employees, representing more than 90 percent of the casinos’ workers.
“I take this very seriously,” Pastor said. “I’m making every effort to see that such behavior does not occur again.”
Pastor said he’s raised the average wages of the casinos by 35 percent in order to attract a higher quality workforce to his properties and discourage tip-hustling. He also said he’s installed 350 new machines in the properties with bill acceptors, lessening the need of players for change persons.
He also said he’s rethemed the two properties since the incident. Coin Castle has been changed to a Louisiana bayou theme, while Sassy Sally’s now has a mermaid theme.
Under terms of the settlement, the properties have hired independent shopping agencies to monitor the casinos for possible tip-hustling. Pastor must also submit weekly reports of their findings to the control board.
* Approved the acquisition of Stratosphere Corp. by American Real Estate Holdings Limited Partnership of Mt. Kisco, N.Y., and licensed Carl Icahn as a shareholder of the corporation.
Icahn did not attend Thursday’s meetings. But Dan Cassella, the property’s chief operating officer, said it was the company’s intention to proceed with the construction of a second, 1,000-room tower within six months, once the half-completed tower’s infrastructure is brought up to code. The project will cost in excess of $60 million.
“The sooner, the better,” Cassella said.
Cassella said that Stratosphere had yet to resolve litigation with Strato-Retail, the company leasing Stratosphere’s retail space, “but we decided to proceed anyway.”
The project was halted several years ago as the Stratosphere teetered on the edge of bankruptcy.
* Accepted the surrender of the gaming license of Double Diamond Saloon and Restaurant, 3220 N. Jones Blvd., for failure to pay taxes and penalties on time.
The Double Diamond didn’t pay $3,750 in taxes until several weeks after its grace period expired at the end of June. It also delayed payment of about $1,000 in penalties. Although the company did pay both taxes and penalties in full, the Attorney General’s office said a failure to pay taxes on time, under state law, resulted in the surrender of a license.
James Webster, a partner in the property, attributed the late payments to a string of bizarre incidents. In one case, a check was accidentally dated for one month past the tax due date, and in another, an envelope containing payment was left on the floor of his truck and was only discovered several weeks later, he said.
“I deeply regret the situation,” Webster said. “I believe in my heart I never broke covenant with the laws of this state.”
However, the commission ruled that state laws made it clear that if payments were late, the license had to be surrendered.
The property will be able to reapply for its gaming license.
* Approved, for five-year terms, a committee of nine Clark County casino operators authorized to be the only properties in the state allowed to conduct off-track pari-mutuel betting.
The operators named to the committee were Palace Station, Caesars Palace, Bally’s, Mirage, Excalibur, Stardust, Orleans, Leroy’s Horse & Sports Book and Whiskey Pete’s.
Under state law, only those properties named to the committee are permitted to negotiate agreements with pari-mutuel racetracks in other states.
* Granted a two-year unrestricted gaming license to Speakeasy Gaming of Las Vegas Inc., doing business as Ramada Inn and Speedway Casino, 3227 N. Civic Center Blvd., North Las Vegas.
* Approved the application of American Wagering Inc. to operate sports books at Speedway Casino, 3227 Civic Center Drive, North Las Vegas; Riviera Hotel & Casino, 2901 S. Las Vegas Blvd.; Tropicana Resort and Casino, 3801 S. Las Vegas Blvd.; and Speakeasy Casino, Reno. Riviera Operating Co. and Hotel Ramada of Nevada were approved to receive a percentage of the books’ revenues.
* Approved a nonrestricted gaming license for Klondike Sunset Casino, 444 W. Sunset Road, Henderson. Found suitable the Woodrum Gaming Trust, owned by John and Ellen Woodrum, as the holding company. Awarded a key employee license to John Woodrum, manager.
* Approved the transfer of 99 percent interest in Woodroc Enterprises Ltd., dba Klondike Casino, 5191 S. Las Vegas Blvd., from John Woodrum to the Woodrum Gaming Trust.
* Approved a continuous or delayed public offering for Boyd Gaming Corp., 2950 S. Industrial Road.
* Approved an application by Coast Resorts Inc., 4500 W. Tropicana Ave., to pledge the common stock of Coast Hotels & Casinos to Bank of America in conjunction with a credit agreement.
* Granted a waiver to Casino Data Systems, 3300 Birtcher Drive, Las Vegas, to allow the funding of progressive jackpots with U.S. Treasury notes, as well as the payment of discounted, lump-sum jackpots.
* Found suitable Eric Paul Endy as controlling shareholder of Paul-Son Gaming Corp., 1700 S. Industrial Road, Las Vegas.
* Approved the transfer of 1 percent interest in B.W. Corp., 2520 S. Arville St., Las Vegas, George Washington Huffman, Jr., to the George Bradley Huffman 1999 Irrevocable Trust. Awarded George Bradley Huffman a key employee license and permission to participate in company operations.
* Approved a systems operation agreement between Retama Development Corp., San Antonio, and sports books in the following hotel-casinos: Bally’s, Bellagio, Caesars Palace, Circus Circus, Circus Circus-Reno, Fiesta, Gold Coast, Harrah’s-Lake Tahoe, Harrah’s-Las Vegas, Harrah’s-Reno, Harveys Resort, MGM Grand, Mirage, Orleans, Reno Hilton and Treasure Island.
* Awarded a key employee license to John Richard Casano, bar manager, P.T.’s Pub, 2280 S. Nellis Blvd., Suite 1, Las Vegas. License will expire September 2000.
* Awarded a restricted gaming license for 15 machines to Tenaya Point LLC, dba Tenaya Creek Restaurant & Brewery, 3101 N. Tenaya Way, Las Vegas. Licensed as members David Allen Roush, Christina Marie Etter Roush, Timothy Michael Etter, Daniel Michael Etter, Vincent Max Telles and Kathryn Ann Etter Telles.
* Awarded a key employee license to Susan Lee Wieser, manager, 465 S. Decatur Inc., dba The Heights, 465 S. Decatur Blvd., Las Vegas.
* Approved a restricted gaming license for six machines to Michael Wichinsky, dba Game Masters, doing business at Magic Wand Truck Stop, 1100 E. Colton Ave., North Las Vegas.
* Approved a restricted license for 15 machines to Western Hospitality and Resorts LLC, dba Hampton Inn Tropicana, 4975 Industrial Road, Las Vegas. Approved Lewis William Shaw II as member/manager.
* Awarded a restricted license for 15 machines to Bomikevic’s LLC, dba Bogey’s Bar & Grill, 7770 W. Ann Road, Las Vegas. Approved licenses as members/managers to Robert Michael Comminos, Victor Guy Hill and Milo Craig Hurst.
* Approved a license for three machines to Sahara Laundry & Dry Cleaning, 4601 W. Sahara Ave. #A, Las Vegas. The establishment may add a fourth machine with the approval of the chairman of the Gaming Control Board.
* Approved a restricted gaming license for seven machines to United Coin Machine doing business at Turtle Stop #20, 11061 S. Eastern Ave., Henderson. Approved the franchisee of the store to receive a percentage of revenues, and awarded licenses to Robert John Webb, the Michael G. Valpiani Separate Property Trust and the Leslie Valpiani trust as members or managers.
* Awarded a restricted gaming license for 15 machines to SKRR LLC, dba Mulligan’s Landing, 2851 N. Rancho Road, Las Vegas. Licensed as members or managers Richard Lee Stevens, Richard Alan Pollack, Keith Kenneth Lyon and Standley Howard Wasserkrug.
* Approved a six-month extension to the restricted gaming license of P.T.’s Pubs Operating Co., dba P.T.’s Pub, 3935 S. Durango Drive, Las Vegas.
* Approved a six-month restricted license extension to Southwest Gaming Services Inc., doing business at Back to the 50s, 9400 W. Sahara Ave., Las Vegas.
* Approved Cardivan Co. for restricted licenses to do business at: Sav-On Drugs #3447, 5681 Boulder Hwy., Las Vegas; Sav-On Drugs #3431, 2662 W. Horizon Ridge Parkway, Henderson; Sav-On Drugs #3482, 7007 W. Ann Road, Las Vegas; Rite Aid Drug Store #6322, 1920 N. Las Vegas Blvd., Las Vegas; K-Mart #3592, 5050 E. Bonanza Road, Las Vegas; K-Mart #3719, 4500 N. Rancho Drive, Las Vegas; Lucky Store #684, 610 N. Nellis Blvd., Las Vegas; Lucky Store #732, 2400 E. Bonanza Road, Las Vegas; Lucky Store #735, 1200 S. Decatur Blvd., Las Vegas; Lucky Store #786, 1760 E. Charleston Blvd., Las Vegas; Sav-On Drugs #2022, 1812 E. Charleston Blvd., Las Vegas; Sav-On Drugs #2054, 9100 W. Sahara Ave., Las Vegas; Sav-On Drugs #2215, 268 N. Jones Blvd., Las Vegas; Sav-On Drugs #2224, 3550 W. Sahara Ave., Las Vegas.
* Approved restricted licenses to Corral Coin Inc. to do business at: Rite Aid Drug Store #6111, 3852 W. Sahara Ave., Las Vegas; Rite Aid Drug Store #6117, 911 S. Rainbow Blvd., Las Vegas.
* Approved restricted licenses to Corral United Inc. to do business at: Sav-On Drugs #3237, 562 N. Eastern Ave., Las Vegas; Sav-On Drugs #3289, 4600 Meadows Lane, Las Vegas.
* Approved a restricted license for five machines to E-T-T Inc., doing business at Macayo Vegas, 8245 W. Sahara Ave., Las Vegas.
* Approved a restricted license for 15 machines to Anchor Coin doing busienss at Smith’s Food and Drug Center #347, 9851 W. Charleston Blvd., Las Vegas.
* Approved restricted licenses for Green Valley Gaming Inc. doing business at: Carnicera Sonora, 5020 E. Tropicana Ave., Las Vegas; Country Deli & Market, 35 E. Basic Road #C & #D, Henderson; Mariana’s Tortilleria, 2551 E. Bonanza Road, Las Vegas.
* Approved a restricted license for seven machines to United Coin Machines Co. doing business at Arco AM/PM #5356, 6801 W. Charleston Blvd., Las Vegas.