Nevada casino regulators OK new casinos operator

AP News
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Posted: Dec 17, 2009 8:22 PM

The Nevada Gaming Commission on Thursday approved new operators of six rural northern Nevada casinos currently in bankruptcy.

Commissioners unanimously approved Northern Nevada Asset Holdings LLC, of Colorado Springs, Colo., to participate in the operations of the Holder Hospitality Group casinos now in bankruptcy.

The properties include the Silver Club in Sparks; Commercial Casino and Stockmen's Casino Hotel in Elko; Scoreboard Casino in Spring Creek; the El Capitan in Hawthorne; and Parker's Model T Casino in Winnemucca.

Holder filed for Chapter 11 bankruptcy protection in June, and Northern Nevada Asset Holding acquired the $33 million note for $8.5 million from the Federal Deposit Insurance Corporation. The FDIC got the note following a bankruptcy filing by a bank that originally made the loan to Holder.

A federal bankruptcy judge will consider stipulations in the case Dec. 21, said Jeff Silver, attorney for Northern Nevada Asset Holdings. Foreclosure sales are currently scheduled two days later, and Northern Nevada Asset Holdings expects to be the successful bidder in each, he said.

Silver said 777 Gaming Inc., a Las Vegas company that already has a nonrestricted Nevada gaming license, is leasing and managing the properties on an interim basis.

He said Northern Nevada Asset Holdings plans to form a new company and, once its principals are licensed, will take over the casinos' operations.