Tuesday, February 11, 2003
Copyright © Las Vegas Review-Journal

Source: Binion's owner forced to inject funds

Insiders say Binion's Horseshoe, located at the Fremont Street Experience, has been losing money for more than a year. Photo by Craig L. Moran.

Binion's Horseshoe is bleeding red ink and there's no sign of improvement, informed sources said.

Owner Becky Binion Behnen has been forced to plow millions in personal funds into Horseshoe accounts to keep the failing property open, while the list of Horseshoe business associates owed money by the 51-year-old hotel-casino continues to grow, sources said.

"Reality's going to have to set in," said one Horseshoe insider who questioned how long Behnen can continue pumping money into the property. "She's losing money, so you'd think she'd sell it. Why not sell it now when you can get something for it? It doesn't make sense, but she seems like she's going to wait."

A second informed source said the Horseshoe's been losing money for more than one year.

"They've been able to continually replenish their funds, but there is a limit to how much (Behnen) can afford to put in," the source said.

Behnen failed to return several calls last week and Monday seeking comment.

The latest sign of problems became apparent last week after a National Labor Relations Board complaint was filed accusing the downtown casino of being behind on contractually promised payments to the Culinary's health and welfare plan.

Meanwhile Horseshoe watchers note that the 51-year-old hotel-casino is:

• About $2.5 million behind on payments to the Fremont Street Experience pedestrian mall.

• In arrears on lease payments owed to property landlords.

State gaming regulators in October forced the downtown casino to shut down hundreds of slot machines as well as several table games and its keno operation when the Horseshoe's bankroll dropped below the state's minimum requirements.

Within a week Behnen was able to add enough cash to the bankroll to reopen the closed machines and games, but the temporary closure prompted questions about the Horseshoe's solvency.

State regulators used the same rules to enforce bankroll minimums at the bankrupt Vacation Village before it closed early in 2002.

Nevada Gaming Control Board Chairman Dennis Neilander said the agency is aware of the Horseshoe's financial plight.

"We're monitoring their finances, particularly as they relate to bankroll or patron payment," Neilander said.

Culinary Workers Local 226 Political Director Glen Arnodo declined to say how much money the Horseshoe is behind on payments to the union's health and welfare fund.

"They are behind on their payments," Arnodo conceded. "Everyone knows the place is losing money -- they must be to be behind on their (contract payments)."

Fremont Street Experience President Mark Paris said last week that the mall's management board has had to cut back on entertainment offerings and marketing expenses because of the Horseshoe's failure to pay its allotted membership dues.

Las Vegas casino expert Anthony Curtis, publisher of the Las Vegas Advisor consumer newsletter, said he thinks Behnen can fix the Horseshoe's money crunch.

"The people I talk to say that (Behnen) can solve the problems, that she can pinch 'em down," Curtis said. "People are saying that money's walking out of the place, but I think she can deal with it."