Thursday, May 08, 2003
Copyright © Las Vegas Review-Journal

Station Casinos execs lectured on role in California

Gaming Control Board members used a routine appearance by Station Casinos executives at a Wednesday panel meeting to lecture the executives on their concerns regarding Station's deal to manage a Sacramento-area tribal casino.

Inadequate regulations and a system that allows the tribe to act as casino owner, regulator and appeal court makes California casino operations a tricky business, the panel members told Station executives.

Control board member Bobby Siller questioned Station execs about the property's two private gaming rooms. Nevada private gaming operations have tough rules that specify who can play and for how much, but Station bosses told Siller that the Auburn tribal gaming commission hasn't created its own rules.

"It would appear that without written policies, you'd be setting yourself up for legal challenges," Siller said. "It seems like it is an accident waiting to happen. With all due respect to Indian gaming, they own the casino, regulate it and run their own courts. You're operating in the blind. And if you have trouble there, you'll have trouble here."

Station bosses promised to create procedures to effectively control the casino.

Station's deal to manage Thunder Valley Casino for the United Auburn Indians has also raised a great deal of concern about the casino's effect on Northern Nevada casino interests, the regulators said.

Member Scott Scherer asked whether regulators had the authority to force Station to choose between its Nevada operations and its California casino.

Scott Nielson, Station executive vice president and general counsel, said no, adding that a better course is for Nevada companies to be involved in California, reap the profits and invest in Nevada.

Station Chief Financial Officer Glenn Christenson said Station would invest most of the $50 million it expects to make in first-year Thunder Valley management fees in construction of its Red Rock Station, a planned Summerlin locals property scheduled to get under way next year.

"Be sure you live up to your obligations," Scherer said.

"These are great opportunities, but they are great challenges," added Siller. "I view any situation fraught with the potential for embarrassment to Nevada as one to be careful of."