Why Gaming Commission denied licensing to this Rio parent company executive

When Dreamscape Companies Inc. President and Chief Financial Officer John Eder arrived at Thursday’s Nevada Gaming Commission meeting, he was relatively assured that he was going to be licensed as an officer of the company that oversees the off-Strip Rio property.

The Nevada Gaming Control Board two weeks earlier had unanimously recommended a conditioned license after a lengthy suitability hearing, meaning he would be licensed, but required to return for a regulatory review in two years if approved by the Gaming Commission.

But instead, commissioners voted 3-2 to deny a license to Eder, putting his gaming career in jeopardy.

Licensed companies are prohibited from hiring or partnering with denied applicants. Eder will join a list of 149 denials, revocations and findings of unsuitability posted by the commission from January 1980 through June 2025.

In a Monday email, Eder’s attorney, Frank Schreck, said there’s no right to appeal the Gaming Commission’s denial finding.

“Mr. Eder and Dreamscape are currently evaluating their options,” Schreck said in his email.

Eder was among three executives under consideration for licensing in the Dreamscape hearing.

Two others approved

Patrick Miller, president and CEO of the Rio, and Christopher Balaban, chief financial officer of the property, were up for licensing as key executives. In separate votes, commissioners unanimously approved their requests.

But when Eder was questioned in commission testimony, regulators zeroed in on his work history with Seminole Gaming and its Hard Rock Hotel enterprise where Eder worked for 20 years.

Hard Rock currently is building a guitar-shaped hotel tower on the Strip, and redesigning what once was The Mirage.

Citing state statute, the Gaming Control Board denied the Review-Journal access to its agents’ investigative report on Eder’s application.

But during more than 1½ hours of testimony before regulators, Eder explained how he was fired three years ago by Hard Rock for accepting a European trip from an insurance company vendor who Eder described as a personal friend.

“I spent 20 years working my way up to CFO of Seminole Gaming,” Eder told commissioners. “Never had a blemish on my record. I know I made a serious error in accepting the gifts, compounded with lack of judgment and being untruthful about the repayment.”

Eder had told his bosses that he was paying back the cost of the trip, which included airfare, train tickets and stays in a luxury hotel.

Eder said he regretted “making a bad decision” and that he lost reputation and integrity in addition to his job.

‘Angry with myself’

“I’m angry with myself for these bad decisions. And I pay for these actions of termination of my employment. I lost my job. I lost money. I lost the opportunity to continue to work with the tribe. And these aren’t small items. “

Commissioner Abbi Silver, a former Nevada Supreme Court justice, said based on state statutes, she couldn’t vote to approve Eder’s application.

“I don’t doubt that you’re not remorseful, but obviously under NRS 463.170, an application must not be granted unless the commission is satisfied that the applicant is ‘a person of good character, honesty and integrity.’ You were CFO of a company where you breached your fiduciary duties and lied to your president. And within three years, you’re before us now wanting to get back into gaming. I have grave concerns about you being a person of good character, honesty and integrity.”

When it came time to vote, commissioners discussed the possibility of referring the matter back to the Control Board for reconsideration and the possible withdrawal of the licensing request.

Silver’s motion for denial was backed by Commissioner George Markantonis, but opposed by Commissioners Brian Krolicki and Rosa Solis-Rainey. That left the final decision to Chairwoman Jennifer Togliatti, a former Clark County District Court judge, who also voted in favor of denial.

Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Follow @RickVelotta on X.