Tuesday, June 17, 2003
Copyright © Las Vegas Review-Journal

El Cortez agrees to fine in employee gambling case

Casino to pay $15,000 to settle Control Board complaint

The El Cortez has agreed to pay a $15,000 fine for allegedly allowing one of its key employees to gamble at the downtown casino in violation of state law, according to a settlement agreement reached with Nevada gaming regulators.

The Gaming Control Board filed a five-count complaint charging El Cortez executives with allowing an unnamed employee, a female cage manager, to gamble before, during and after her shifts despite her key employee status.

El Cortez executives admitted to the allegations in the control board complaint.

The former employee worked at the El Cortez from 1965 through September 2001, and ran up more than $532,706 in gambling debts at the property by writing checks to the casino cage, the complaint noted.

She then had the checks held in the cage rather than deposited, the complaint noted.

El Cortez executives agreed to allow the unnamed key employee to repay the accumulating debt out of her retirement account when she retired, but the woman refused to pay up when she retired in 2001, the complaint noted.

Gaming Control Board Chairman Dennis Neilander said the agency doesn't release the names of individuals involved in complaints, noting that the board's complaint is against the El Cortez.

Although the complaint and settlement didn't name the key employee, El Cortez parent Exber Inc. filed a lawsuit against former cage manager Carolyn Masten in January 2002 that contains allegations closely matching those in the control board complaint. Masten's lawyer, Paul Gaudet, did not return a Monday phone message.

Regulators and El Cortez officials declined to confirm Masten was the key employee named in the complaint.

El Cortez owner Jackie Gaughan and Vice President Alan Abrams weren't available for comment; casino manager Wayne Starker declined comment.

Neilander said the board regularly disciplines casinos for allowing key employees to gamble.

"It creates a bad public perception, that someone working at the casino has an advantage, even though it's not true," Neilander said.Neilander declined to say if the agreed-upon fine was lowered because El Cortez is an older casino operating in the downtown market, but former control board member and University of Nevada, Las Vegas professor Shannon Bybee said he wouldn't be surprised if regulators took that into account.

"The financial impact on the licensee is a legitimate factor to consider," Bybee said. "Gaming regulators are not traffic cops. Their purpose is to keep the place running and in compliance with state regulations."

The complaint charged the El Cortez with:

• Allowing a key employee to gamble on premises in violation of state rules.

• Allowing a key employee to extend herself credit by writing checks to the cage that weren't placed for deposit.

• Allowing a second unnamed key employee to gamble on site and to extend credit by writing checks that weren't deposited.

The Nevada Gaming Commission must still approve the settlement reached last week; the five-member panel is expected to consider the agreement at its Thursday meeting in Carson City, Neilander said.