100-room gaming rule passes first reading

An ordinance that would require a minimum of 100 guest rooms for a gaming district overlay sailed through its first reading Thursday, heralded as measure to strengthen existing businesses.

Douglas County commissioners voted 5-0 to adopt the zoning text amendment.

Existing and approved gaming establishments would be grandfathered in and the new provisions do not apply to casinos within the jurisdiction of the Tahoe Regional Planning Agency.

Ron Terrell, Sharkey's casino general manager and chief financial officer of Holder Hospitality Group, told commissioners only two of the company's casinos were not in bankruptcy, including Sharkey's.

"I am working as hard as I can to meet our financial obligation to the Begovich family," he said.

The Holder group acquired the casino from the family after namesake and patriarch Sharkey Begovich died in 2002. At one time, he said, the company had 13 casinos.

"It's not us against Hamdog's," he said. "We are not trying to stop anyone else from doing what's right."

Properties like Hamdog's restaurant had opposed the proposal which limits to 16 slot machines properties with restricted gaming licenses.

"If you let Hamdog's get theirs, then you have to let Jethro's. And Moose and Squirrel will be right behind. You're just going to have a bunch of these small casinos and none of these big developments will take place," Terrell said.

Rick Ross, general manager of the Topaz Lodge, said the casino wasn't getting its historical numbers with the sluggish economy, but owners continued to invest in the south Douglas County property.

"We want to come out better than we went in," he told commissioners.

Bill Henderson, director of marketing at Carson Valley Inn, said there was nothing groundbreaking about the ordinance.

"We're not talking here about reinventing the wheel. There's nothing cutting edge," he said. "The thing about 100 rooms is that it involves a sizable investment. If you want nonrestrictive gaming, do something for the community. Make the pie bigger for all of us.

"If we don't have this, we're sending a signal that anybody can come in, put in a few slots and do nothing to enhance tourism. That would 'dis-enhance' the rest of us."

Commissioner Greg Lynn said he felt more of an obligation to existing businesses by enacting the ordinance.

"I don't know that the citizens in this town have an appetite for a bunch of slot joints," he said.

In 2006, commissioners denied a proposal that originally required 200 rooms for a casino overlay. That was cut to 100 rooms, but the proposal ultimately was rejected.

A similar ordinance is in effect in Carson City.

"Since 2006, the set of circumstances has changed dramatically," said Commissioner Dave Brady. "I think gaming is on life support. For us not to address this would deal a knockout blow to businesses here. Without the overlay, the dilution of the market share is an overriding concern."

Commissioner Doug Johnson took issue with the thought expressed by some business operators that the ordinance pits large properties against small.

"I beg to differ that we're trying to protect big businesses over small," he said.