Tuesday, January 13, 2004
Copyright © Las Vegas Review-Journal

EDITORIAL: The Horseshoe closes down

Bad management the most likely culprit

Although Bugsy Siegel opened the Flamingo in 1946, many date the arrival of "big-time gambling" in Las Vegas to Benny Binion's launch of Binion's Horseshoe on Fremont Street in 1951.

In his 85 years, Mr. Binion -- who died in 1989 -- was reputed "never to have encountered a bet too large to cover."

The Horseshoe's neon canopy has long been part of the familiar panorama of Glitter Gulch. The casino -- known for easy comps and a fine basement coffee shop -- is home of the World Series of Poker, broadcast internationally on ESPN.

And the Binion family remained in the headlines, albeit unwillingly, linked inextricably to Las Vegas with the recent murder trial -- about to be repeated, after the court threw out the initial convictions -- of Sandy Murphy and boyfriend Rick Tabish, accused of the murder of Binion heir Ted Binion.

Of course, the Horseshoe is not a large casino, compared to any of a dozen newer mega-properties further south along the Strip. In its total contribution to the region's economy, the shuttering of Binion's -- presumably temporary -- is not a major blow.

But for all the reasons cited above -- in addition to the addition of 900 Binion's employees to local unemployment rolls -- Friday's events have nicked the soul of Las Vegas.

The casino closed this weekend after U.S. marshals entered the building late Friday with a court order to seize $1.9 million in cash to satisfy debts owed to union pension and welfare funds.

About $1 million was seized, but not enough to satisfy the order. The Horseshoe recently listed at $1.2 million the amount they are required by gaming regulators to have on hand to operate -- though casinos of similar size are often required to have $3 million to $5 million on hand.

Many observers express doubts that Becky Binion Behnen, current owner and daughter of the casino founder, will be able to satisfy cash requirements to re-open. (Other creditors include the Internal Revenue Service, which has filed two liens totaling more than $5 million.)

The shuttering of Binion's by no means indicates it's time to administer the downtown its last rites -- the recent purchase of the Four Queens and the prospective sale of the Golden Nugget and all of Jackie Gaughan's properties except El Cortez are strong evidence of that.

Yes, downtown Las Vegas continues to struggle despite public investment and protectionism unheard of on the vibrant Strip. The closure of Binion's doesn't help. "Empty spaces reinforce the message that downtown is less than vital," warns professor Bill Eadington, director of the Institute for the Study of Gambling and Commercial Gaming at the University of Nevada, Reno.

In this specific case, however, mismanagement is the likeliest suspect in Binion's demise -- Ms. Behnen apparently didn't inherit her family's magic touch.

It would be a shame to see the final demise of Benny Binion's fabled gambling palace. Let's hope Harrah's Entertainment's offer to purchase the Horseshoe comes to fruition and quickly gets things going again.