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Thursday, April 11, 2002
Copyright © Las Vegas Review-Journal

DOWNTOWN GAMING: Court allows Binion's asset seizure

Fremont Street Experience hopes for settlement over dues dispute

CARSON CITY -- The Supreme Court Wednesday lifted its order blocking the Fremont Street Experience from seizing $1.9 million from the cage of Binion's Horseshoe.

In a 3-0 vote, the court said it should not intervene in the case at this time. The justices said the Horseshoe could secure a cash bond to avoid attachment of its assets to cover payments due to the Fremont Street Experience pedestrian mall.

Because adequate remedies exist for the casino, Justices Miriam Shearing, Bob Rose and Nancy Becker denied the Horseshoe's request to block the attachment of its assets.

Pat Riley, an attorney for the Fremont Street Experience, said it is trying to reach a settlement with the Horseshoe and will not move immediately to attach the money.

"There is a possibility we can work this out amicably," he said.

The court on Feb. 8 temporarily voided an order by District Judge Gene Porter that allowed the seizure of Horseshoe assets to cover its share of the mall's dues.

Horseshoe officials had said a seizure would jeopardize the casino's ability to stay open. Removal of $1.9 million from the cage would have placed the casino below the state-required minimum of $1.2 million cash on hand.

Riley estimated a cash bond to cover the debt could be secured for little more than $20,000 and the Horseshoe could avoid talk of shutting its doors.

A Horseshoe lawyer did not respond to a call for comment Wednesday.

While the court decision allows the Fremont Street Experience to take the due payments, the Horseshoe still has a pending District Court case challenging the Fremont Street Experience's operating agreement.

Its lawyers claim that the Fremont Street Experience's actions violate federal antitrust law, state law and city ordinances. They also claim the hotel-casino's dues are unfairly large compared with those paid by competing downtown properties.

"We haven't won the case yet," Riley said. "This is all about security on a debt."

In court filings in February, the Horseshoe said it would lose $260,000 in daily revenues if forced to close.

The company employs more than 1,700 employees and has an annual payroll of $38 million.