BJ21.com Newsletter
October 11, 2007      071011

Presented as a public service by 
BJ21.com, the leading source of accurate information about casino games and conditions.

Compiled by Al Rogers
 Al@bj21.com


600 rooms at Harrah's closed -- Concerns about remodeling prompt move

As a safety precaution, Harrah's Las Vegas early Monday evening closed about 600 of its hotel rooms, relocating affected guests to comparable lodgings at sister properties nearby.

Oversight defended -- Official rebuts criticism of review of work at Rio, Harrah's Las Vegas

Clark County Manager Virginia Valentine attempted Tuesday to defuse two controversial aspects to the county's handling of remodeling projects at Harrah's Entertainment properties. Questions about those projects have led to the closure of hundreds of rooms at Harrah's Las Vegas and Rio.

Constant need to renovate challenges gaming industry

Randall Sayre, a member of the state Gaming Control Board, said he hopes the permitting problems are limited to Harrah's Entertainment properties. He does not feel the need to look at other gaming companies at this time, but he said that could change if the final investigations by the gaming company and the county end up showing problems could exist elsewhere. "Clearly this is a profound issue with regards to public perception," Sayre said. "I don't think it is right, at this point, to push a great deal of expense through the entire industry to go look for a maybe."
Corporate arrogance plus county laziness equals serious public danger

Arrogance is not unique to Harrah's Entertainment. But in recent weeks, the company's actions have been the most flagrantly arrogant in a company town known for corporate arrogance.  ...
Those of us who were in Las Vegas when the MGM Grand burned 27 years ago remember that 83 building code violations were found ... after the fact.


A quiet debut for casino

A new Desert Diamond casino is expected to open quietly today. Workers at the 165,000-square-foot casino near East Los Reales Road and South Nogales Highway were busy applying the final touches Wednesday.

Thanks to Green Chip member Flatpick for submitting this link.

Supreme Court rejects high-roller lawsuit 

The U.S. Supreme Court refused to take up an appeal Tuesday from a high stakes California gambler who claimed he was defrauded by the Paris Las Vegas in 1999.

Civil suit over casino halted -- Eleventh-hour bankruptcy filing stops investors' civil trial

A civil trial involving investors who lost money in a failed casino venture was postponed indefinitely Monday after the co-defendants filed for bankruptcy hours before its start.

Scandals causing cooperation between sports groups and gambling outlets

In September 2005, a stranger from the Midwest walked into an MGM Mirage casino here and bet around $20,000 against the University of Toledo football team. Casino officials grew suspicious: It was an unusually big wager for a school like Toledo, which was heavily favored. They wondered whether the bettor had inside information that the game was rigged. ...

"The leagues have a public stance that, 'We don't like gaming, we don't like Vegas.' But the reality is that without Las Vegas and without sports betting, their giant empires would crumble," says Ted Sevransky, a professional gambler and sports handicapper based in Las Vegas. He credits gambling, in part, for sports' high television ratings and, by extension, for big TV deals signed by pro leagues and the NCAA. "Sports betting is the hidden fuel," he says.

Under the radar, Caesars dealers push for union

For decades, dice and card dealers resisted unions, preferring to watch out for themselves, pocket their own tips and cut their own deals for choice shifts. But a new culture among dealers is emerging. It surfaced this year at Wynn Las Vegas, where dealers organized in anger over how their tips were being shared with supervisors.

So far, track is clear for Station to go private -- Locals casino operator says it plans to keep building

Steve Wynn invited the wrath of Wall Street soon after the 1999 opening of his $680 million Beau Rivage in Biloxi, Miss., which earned less than analysts expected.

MGM Plans New Atlantic City Casino

MGM Mirage Inc. announced Wednesday that it plans to build a mega-casino resort worth up to $5 billion that will dwarf anything Atlantic City has seen before.

Sands' explosive ending to take about 18 seconds

A series of sharp bang-bang-bangs will be heard at first, followed by the thud-like sounds of heavier explosions ripping through the building.

Casino tribe alleges fraud -- Cache Creek suit accuses lawyer, financial adviser

The Rumsey Band of Wintun Indians, owners of the Cache Creek Casino Resort, filed a bombshell lawsuit Tuesday that claimed their longtime lawyer and financial adviser swindled the tribe for years, even as they guided its members from poverty to immense wealth.    Link to copy of lawsuit.

Indian band wants say over CAW workers


In a case that's expected to help define the limits of native self-government in Canada, an Indian band operating a highly profitable casino near Port Perry, Ont., says the province's Labour Relations Act does not apply on its land.

Judge sides with Barona tribe over selling alcohol at casino


An administrative law judge is recommending that the Barona Band of Mission Indians be allowed to continue serving alcohol at its massive casino resort north of Lakeside over the opposition of county officials and neighbors.

Venetian Macau imports Vegas service workers

Chinese customers at the newly-opened 3,000-room Venetian Macau are experiencing a taste of Las Vegas-style gambling, glitz and luxury on a massive scale.

Ignoring law, Blue Man Group drags out union fight

The International Alliance of Theatrical Stage Employees Local 720 won an election 16 months ago to represent workers at the Blue Man Group's show at the Venetian.

In a bold move, teachers reach for gaming's pockets ...

So now the moment of reckoning has arrived.

Gaming tax boost popular -- Union leader says 70 percent of voters would back increase

More than 70 percent of Nevadans will support a petition to raise the gaming tax by 3 percentage points and raise an estimated $400 million a year to fund higher teacher pay and school improvements, a union president predicted Tuesday.

Homeless camping on Strip 

They hang "Do not disturb" signs from their doorknobs. Some make their beds in the morning. Artwork even hangs on a few of the walls of this one-time Strip motel. Less than a mile south of the golden-windowed towers of Mandalay Bay, the homeless have found a new place to stay -- inside the shell of what was once the Klondike Inn.

Las Vegas could learn a few things from Reno

Reno vs. Las Vegas. We can't help but to compare and contrast Nevada's two urban centers. Having lived in both places, I've always tried to be a voice of reason on the subjec


The Bear Growls: Harrah’s apparently put patrons’ lives at risk to save a few dollars

Long-time Las Vegas-based advantage player, casino critic, and frequent BJ21.com contributor LVBear offers his opinions on things that sometimes go wrong in the world of casinos.  Current and past growls can be read and comments posted at LVBear's website, TheBearGrowls.com

By LVBear
LVBear584@cox.net

The latest incident involving shameful corporate behavior by Harrah’s is mind-boggling. Though the story is still unfolding, what is known so far is reprehensible. When Harrah’s remodeled some floors of the Rio, it managed to avoid county building and safety inspections. According to news reports, apparently Harrah’s personnel or contractors blatantly lied to the county about the scope of the remodeling, or the county inspectors were so incredibly inept they failed to see an entire floor being gutted.

After a whistle-blower exposed the wrongdoing, it appears that Clark County tried to cover it up. It is not yet known whether this was an internal coverup of its own incompetence by the county, or whether Harrah’s is involved in the coverup. It appears that a combination of both is most likely.

As of this writing, the County has revoked the occupancy certificate for two floors of the Ipanema Tower at Rio and ordered the evacuation of guests from the possibly unsafe rooms. The investigation continues, but so far no outside agency has become involved. Surely, an apparent crime of this magnitude is a matter for police and/or the District Attorney. But oddly, Rick Maddox, the county employee in charge of the investigation, is the very person who is either so incompetent he didn’t notice the obvious, or was previously hoodwinked by Harrah’s, or had some other reason to not do his job properly. Obviously Mr. Maddox has a conflict of interest “investigating” his own misbehavior and/or incompetence.

It’s too early to predict what will happen. If the allegations against Harrah’s are true, someone should go to prison. The culprits are probably some Harrah’s executives, as well as corrupt county officials who willfully participated in allowing the remodeling to go forward without proper permits and safety inspections. Was it done just to save Harrah’s a few bucks on inspection and permit fees? Was it done to slip through shoddy and unsafe workmanship, putting guests at risk? Were country officials paid off to look the other way? Unfortunately, I suspect we will never learn the truth. While our corrupt, grandstanding District Attorney David Roger is personally prosecuting O.J. Simpson for the type of crime casino guards routinely commit but never get prosecuted for, the Harrah’s crimes will be swept under the rug, and it’ll be business as usual. Shame on Harrah’s, and shame on Clark County.

BUILDING PERMITS AND SAFETY INSPECTIONS: Rio rooms close

Harrah’s: Tower open, safe — Officials investigate remodeling

EDITORIAL: Just a little ‘cosmetic work’ — What was county doing when it came to Rio inspections?

OCCUPANCY REVOKED: Two Rio floors closed

The scandal worsens — another local Harrah’s property was improperly remodeled

As a safety precaution, Harrah’s Las Vegas early Monday evening closed about 600 of its hotel rooms, relocating affected guests to comparable lodgings at sister properties nearby. Jan Jones, an executive at Harrah’s Entertainment, said the company voluntarily took the step because an ongoing internal investigation had revealed that several larger remodeling projects at Harrah’s on the Strip took place without the necessary permits.

“Voluntarily”? What a joke. They did it because they got caught, plain and simple. There is no reasonable possibility that Harrah’s management didn’t know this work was done without the proper inspections and permits. There is no reasonable possibility that the county didn’t know this work was done without the proper inspections and permits. Because of the good work done by the newspaper in exposing the wrongdoing, despite Harrah’s and the county’s best efforts to cover it up, now the finger-pointing will begin.

“We value the trust that our guests and communities have placed in us, and the only way we can maintain that trust is to be completely open about the results of the investigation,” Jones said in a statement.

600 rooms at Harrah’s closed

Does anyone “place trust” in Harrah’s? If so, I have some fine swamp land for sale. I deeply hope that one day soon Harrah’s is destroyed by an Enron-like scandal, and the slimeballs that run this horrible company are exposed for what they are.

It’s interesting to note that another former public employee has crossed the line and accepted employment at Harrah’s, joining former Las Vegas mayor Jan Jones as a publicity and “government relations” hack. Marybel Batjer was a respected public servant with responsible government positions before she apparently checked her morals and ethics at the door and entered Harrah’s. Shame on Marybel Batjer.

Already the politicians are ducking for cover and the Harrah’s mouthpiece is changing which foot is in her mouth:

In an interview Tuesday, Jones emphasized that the company has identified problems at only two of its Las Vegas properties and expects to find nothing more.

“We believe, and our investigation has found, these incidents appear to be isolated to the two floors at the Rio and the 500-plus rooms at Harrah’s Las Vegas,” she said. “We are fairly confident we have identified the rooms, and they are isolated to the Rio and Harrah’s.”

“Fairly confident”?  I think she means they are “fairly confident” that nothing else will be uncovered during the present "investigation” headed by the same buffoon who let it happen in the first place, then apparently lied about it in official reports.

“Gary Loveman takes very, very seriously his role in being the leader of integrity for Harrah’s Entertainment,” Jones said.

The sleaziest reptile in the entire casino industry is a “leader of integrity”? Pardon me while I throw up.

The state attorney general’s office says it’s up to local authorities to investigate potential criminal aspects to the remodeling problems. …

But two Clark County agencies say it’s not their job to investigate, either.”Our office is not staffed to investigate criminal matters. Rather, we receive requests for prosecution from local law enforcement once they have completed their investigations,” said Christopher Lalli, head of the criminal division of the Clark County district attorney …

But the hands of Las Vegas police are also tied, according to police spokesman Jose Montoya. “I’m not sure that we would get involved. It’s not a criminal act. It’s more a civil act,” Montoya told the newspaper last week. He did not change his response when asked whether remodel managers for Harrah’s Entertainment should have known to seek permits, and might have covered up faulty work. …

The county investigation of the Rio led to closure of two floors for remodeling that bypassed county safety procedures. One county official says the Rio failed to adequately protect holes between floors so smoke won’t spread during a fire. …

Official rebuts criticism of review of work at Rio, Harrah’s Las Vegas


“It’s not our job.” Sickening, corrupt, cowardly public officials.

Two opposing views:  Gaming regulator takes usual do-nothing approach:  
"I don't think it is right, at this point, to push a great deal of expense through the entire industry to go look for a maybe."

In other words, let's not ask the greedy casinos to follow the law in protecting guests against hazards.  Mr. Sayre is an embarrassment, and should resign immediately.

A well-informed long-time local columnist who understands how things work in Las Vegas:


Arrogance isn't admirable, but incompetence and sloth aren't so terribly commendable. Our crack officials at the Clark County Development Services couldn't find there was a problem at the Rio when Frazzetta came to them in August 2006 and said the Rio had undergone major remodeling without permits or inspections. Sure they checked six months after he complained. But all that the keenly perceptive supervisory building inspector Rick Maddox could find was that the work was original and not remodeled. Case closed. Now he's in charge of the Rio reinspection, with supervision of course. That's just so reassuring. How hard will he look for the things he couldn't see before?

As pointed out previously, having this buffoon in charge of the "investigation" is beyond ridiculous. 

NOTE:  Information about this scandal will continually be updated on  www.TheBearGrowls.com


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