Herbst Gaming LLC has signed a four-year deal to provide consulting services to the Rampart Casino in Las Vegas, which is owned by Hotspur Casinos Nevada Inc., according to a regulatory filing.
Herbst won't manage the casino once Cannery Casino Resorts LLC's management contract expires next year. Instead it will work with Hotspur Casinos as the company begins to manage its own casinos.
"The consulting services to be provided by the company include, among other things, the preparation ... of a five-year strategic plan for the casino and the preparation of an annual budget for the operation of the casino," the Securities and Exchange Commission filing said.
The Rampart Casino is at the JW Marriott at 221 N. Rampart Blvd.
Herbst disclosed that its consulting contract started May 1 and the "company will advise and make recommendations to the Hotspur concerning Hotspur's operation of its casino."
Herbst CEO David Ross will direct and supervise the consulting. Under the deal, Herbst is entitled to receive a monthly fee until the "commencement date" of the agreement on April 1, 2012.
Following the commencement date, the gaming company is entitled for three years to receive an annual consulting fee, payable monthly subject to Nevada gaming regulators' approval and an incentive fee if Hotspur's EBITDA, or earnings before interest, taxes, depreciation and amortization, "exceeds certain thresholds."
Herbst also agreed not to acquire any interest or enter any management or consulting agreement in a nonrestricted casino within five miles of the Hotspur casino without Hotspur's prior approval.
Herbst, which exited bankruptcy Dec. 31, also said John Christopher Krabiel has been named chief financial officer and treasurer. Donna Lehman, the company's former principal financial officer, has been named senior vice president, finance, the filing said.
Before joining Herbst in January , Krabiel, 47, was vice president of operational finance for Boyd Gaming Corp.
Herbst operates nearly a dozen casinos in Nevada, including Terrible's Casino in Las Vegas and three Primm resorts at the Nevada-California border; Herbst also operates riverboat casinos in Iowa and Missouri.
The Las Vegas-based company owns a Nevada slot machine route operation with more than 6,000 machines in more than 300 bars, taverns, convenience stores and grocery stores.
Contact reporter Chris Sieroty at firstname.lastname@example.org or 702-477-3893.