Gaming License: What Would It Take...
Is their equipment & software actually audited by the authorities?
Are probability checks carried out?
Are the slot machine programs tamper proof?
Drop boxes and count room equipment is examined.
Box collection procedures are strict and the times are rigid.
The casinos employ slot machine auditors. The gaming commission checks various seals. The do spot inspections just as a gas station pump is tested from time to time.
Chips once approved will be checked by serial number.
Slot machine programs affect bells and whistles usually.
Most problems relate to record keeping.
Too much tax money depends upon slot machines for the authorities to tolerate sloppiness.
Undercover gaming commission officers do pay visits but they usually only catch procedural violations that the casino would catch and such things might lead to fines but not revocation.
Quote: AussieWhat would it take for a medium-large Vegas casino to lose it's gaming license? Given the huge number of people they employ, massive tax revenue they bring in, huge physical space they take up etc, I'm assuming it would take a hell of a lot. What are peoples thoughts here?
To lose it outright would take quitew a bit I imagine. As it should be since so much has been invested in it. No casino would invest millions on getting a license and as much to keep it if it was easy to lose. It is the same reason people are more likely to purchase land in the USA where you get clear title than say Zimbabwe where a dictator takes what he likes.
I think thru history the gaming board has been more prone to "advise" an owner to sell than pull the license. This way the property stays open and the bad management who violated the rules gets the boot.
Quote: WizardThe only incidence I am aware of in which a casino lost its license was Binion's about five years ago. There is a formula that states how much cash a casino is supposed to have on site, relative to such things as the number of table games, the limits, and annual revenue. Gaming agents can do surprise visits to enforce this requirement. Binion's could not produce sufficient funds at such a surprise inspection one evening, so they were shut down.
How long were they shut down for?
(Yes, I know that Harrah's ultimate goal was to purchase the World Series of Poker, then dump Binion's, but this question is more a curiosity how Binion's reopened.)
---
On a totally unrelated note, a few years back, New Jersey had a budget crisis, and all non-essential state agencies were shut down for a couple days until the budget was approved. And even though they are paid directly by the casinos, that included the Casino Control Commission. As a result, ALL of the casinos shut down during that period. (In 2008, a new law states that casinos do not have to close if there is another similar budget crisis.)
However, the hotels remained open, and, as memory serves, athough occupancy was low, it was a lot higher than expected, as the town turned into a beach resort again. (Curiosity piqued, I actually tried to find info to back up this memory, but came up empty...)
Wikipedia is a wonderful thing.Quote: DJTeddyBearBinion's 5 years ago? Is that when Harrah's bought it? I.E. To get them reopened?
(Yes, I know that Harrah's ultimate goal was to purchase the World Series of Poker, then dump Binion's, but this question is more a curiosity how Binion's reopened.)
From http://en.wikipedia.org/wiki/Binion's_Horseshoe:
Quote:... After holding off numerous times, on December 5 2003, the Culinary Union obtained a court order authorizing the seizure of up to $1.9 million from the Horseshoe casino cage. The seizure took place on January 9; ultimately federal marshals and IRS agents seized $1 million in order to satisfy debts owed to the Southern Nevada Culinary and Bartenders Pension Trust Fund and to the Hotel Employees and Restaurant Employees International Union Welfare Fund. The seizure effectively depleted the Horseshoe's bankroll, forcing it to close. A day later, the hotel was shut down as well, and Behnen reached an agreement with the Nevada Gaming Commission to keep the casino closed until its bankroll was replenished.
A few days later, on January 23, Behnen reached a deal to sell the Horseshoe to Harrah's Entertainment. The deal closed in March 2004. Almost immediately, on March 11, Harrah's sold the Horseshoe to MTR Gaming Group. Harrah's retained the rights to the Horseshoe brand and the World Series of Poker when it sold the casino and hotel, but sold the Binion's brand. The land the casino sits on is still leased from multiple owners.
Binion's reopened in April 2004, with MTR Gaming operating the hotel and Harrah's Entertainment operating the casino, while MTR Gaming completed the process of acquiring the required gaming license. Harrah's continued to operate the casino under a temporary contract with MTR Gaming until March 11, 2005 when MTR Gaming Group officially took control of the operation of the casino and renamed it Binion's Gambling Hall and Hotel.
A friend of mine had winning sports tickets at the time it was shut down. He was a little worried about being paid. I offered him 90 cents on the dollar for the tickets, as I recall, but he declined. In the end I think he had to mail the tickets in somehow, but he was paid, although it took a while.
Quote: AussieWhat would it take for a medium-large Vegas casino to lose it's gaming license?
How about massive fraud caught on record and publicly printed?
But define 'massive.'
Also, whoever looks into it will need to hear the other side of the story before any action takes place.
I have heard rumors that some places do not always meet the bankroll requirements.
Quote: DJTeddyBearBinion's 5 years ago? Is that when Harrah's bought it? I.E. To get them reopened?
(Yes, I know that Harrah's ultimate goal was to purchase the World Series of Poker, then dump Binion's, but this question is more a curiosity how Binion's reopened.)
---
On a totally unrelated note, a few years back, New Jersey had a budget crisis, and all non-essential state agencies were shut down for a couple days until the budget was approved. And even though they are paid directly by the casinos, that included the Casino Control Commission. As a result, ALL of the casinos shut down during that period. (In 2008, a new law states that casinos do not have to close if there is another similar budget crisis.)
However, the hotels remained open, and, as memory serves, athough occupancy was low, it was a lot higher than expected, as the town turned into a beach resort again. (Curiosity piqued, I actually tried to find info to back up this memory, but came up empty...)
(I hope this isn't deemed too political...)
It was 2006...Corzine's first budget, and he bungled it immensely even though he had solid majorities in both houses. Four years later, Christie has the other party controlling both houses and he's able to get his through in time. Corzine learned his lesson quickly though, and the other budgets were not as troubled. What I remember the most is every news organization took a picture of the Roulette Screens that say "No More Bets" when the ball is in motion to signify the lack of gambling, but of course those screens were mostly just turned off during the actual shutdown.
Quote: WizardThe only incident I am aware of in which a casino lost its license was Binion's about five years ago. There is a formula that states how much cash a casino is supposed to have on site, relative to such things as the number of table games, the limits, and annual revenue. Gaming agents can do surprise visits to enforce this requirement. Binion's could not produce sufficient funds at such a surprise inspection one evening, so they were shut down.
link to bankroll requirements . You need anywhere from $2000 to cover a blackjack or roulette table up to a maximum of $30,000 for a major casino that makes over $130 million a year in gaming revenue.
Baccarat requires up to $100K and Craps can be as high as $60K. Slot machines are from $1K to $5K for a major casino.
Binion's was purchased by both Harrah's and Mountaineer Casino, Racetrack & Resort in West Virginia. Harrah's stripped the property of it's two valuable commodities, the brand name for WSOP and the "Horshoe brand name" . Mountaineering tried and failed to make money on the property until they gave up and sold it to Terry Caudill (who owns the Four Queens across the street) on March 11, 2008. Terry had ambitious plans, but ended up shutting down the hotel and the coffee shop and the keno pit.
Downtown has been losing revenue since June 2006 . From a broader perspective downtown peaked in 1992. Business in downtown improved when the Mirage and Rio opened, but when MGM Grand, Excalibur and Luxor opened it started to slide.
Still downtown holds an allure for some people who want to own a Vegas casino, and cannot afford anything else.
