Siena Goes Down, but Not For Long
From reports I've seen over the last few years, the Siena Hotel Spa Casino was skating on the edge of fiscal disaster almost since it opened. When it closed the doors due to bankruptcy on October 21, it had $50 million in debt. The story could have ended there, with the Siena joining Fitzgeralds in Reno (closed in 2008) and the Silver Club in Sparks (closed in 2009) as hotel casino properties that could not weather the recession, declining tourism, and competition from California Indian casinos.
At the bankruptcy auction on November 10, Grand Siena LLC trumped two other bidders to obtain the property for $3.9 million. The purchase included all of the furnishings and equipment inside and the website, but not the $50 million debt.
Showing posts with label Siena. Show all posts
Showing posts with label Siena. Show all posts
Sunday, December 5, 2010
Friday, October 22, 2010
Siena closed
Closed Siena casino in Reno has one more possible lifeline
The Siena Hotel Spa Casino, which closed at noon Thursday, has one last lifeline to explore, according to documents filed with federal bankruptcy court in Reno this week.
By Oct. 29, the troubled property will either be bailed out by a potential investor or will be liquidated in the ongoing bankruptcy, the court filing states.
"It is difficult to say what the market value of the property would be," said Bill Eadington, director of the Institute for the Study of Gambling and Commercial Gaming at the University of Nevada, Reno. "Although the hotel portion is still very high quality and a nice product."
Hotel guests and employees removed their belongings Thursday from the 214-room property, which carries an estimated $100 million in debt.
The Siena had about 500 employees when it opened in 2001. This summer, about 300 remained, but many were laid off as the property closed its gaming operations and cut back in all departments. The 23,000-square-foot casino shut down its table games in June and closed off its slots earlier this month, leaving only the sports book open in the gaming area.
Joe Buentipo, a cook who also worked in shipping and receiving, said he knew something was going on Thursday morning when security guards set a chair near his door and he was told not to accept any deliveries.
At an 11 a.m. meeting they were told the doors would be closed, he said.
"We had some banquets scheduled; I don't know what they're going to do with that," Buentipo said.
Neither Siena owner Barney Ng nor general manager Clyde Callicott retuned calls Thursday for comment.
The sports book was run by the Club Cal Neva, and Cal Neva president Jeff Siri said winning betting tickets from Siena and futures bets will be honored at the Cal Neva and all sports books run by the Cal Neva.
Those include sports books at the Eldorado Hotel Casino, Boomtown, Terrible's Rail City Casino in Sparks and the Bonanza Casino.
Siri said he's hopeful the Siena's patrons will migrate to the Cal Neva and other downtown properties.
"It hurts us to lose the Siena's (214) rooms, though," Siri said. "We hate to see that."
The Siena had been struggling since its opening in 2001 and had staved off foreclosure last year. The operation declared bankruptcy in August.
According to statements filed in bankruptcy court Wednesday, the Siena ran into a "liquidity" crisis in October and couldn't pay its NV Energy bills. Earlier this year, the property had agreed to pay the utility $50,000 every two weeks to keep the lights on.
The most recent filing states the hotel is temporarily closed, but the debtors remain in "active negotiations" with one prospective investor.
By Oct. 29, the filing states, the Siena will either be able to make a deal that will allow it to "reopen some or all of its operations" or will remain closed and "report to the court with respect to its sale prospects and the relative merits of continuing its sale prospects under Chapter 11 or Chapter 7" bankruptcy.
Gaming experts said that given the current economic conditions and gaming's long-term decline in Northern Nevada, the Siena's prospects are dim.
"It's always regrettable when this kind of thing happens," Eadington said. "The problems at the Siena have been pretty systemic and have been developing for a long time. They are related to the overall decline in the gaming economy for the past 10 years and to the Siena's location, size and lack of ties to other casinos.
"To a large extent, it's been an orphan and it's been isolated."
He said it's increasingly difficult to run a successful gaming property in Northern Nevada, especially one with the added problems of the Siena.
Ellen Oppenheim, the president of the Reno Sparks Convention and Visitors Authority, said the Siena had been making weekly payments on its room taxes since declaring bankruptcy in August. But she said the property still owes back room taxes accumulated before the bankruptcy filing.
The RSCVA doesn't disclose individual room tax revenues, but figuring 214 rooms at a 50 percent occupancy rate puts the Siena's annual room tax bill at about $300,000 per year.
Oppenheim said guests who planned to stay at the Siena are being rebooked into other Reno-Sparks hotels. She said she hopes a new owner can be found to take over the hotel-casino.
"The Siena is a unique property along the river," she said. "It has great potential."
The Siena Hotel Spa Casino, which closed at noon Thursday, has one last lifeline to explore, according to documents filed with federal bankruptcy court in Reno this week.
By Oct. 29, the troubled property will either be bailed out by a potential investor or will be liquidated in the ongoing bankruptcy, the court filing states.
"It is difficult to say what the market value of the property would be," said Bill Eadington, director of the Institute for the Study of Gambling and Commercial Gaming at the University of Nevada, Reno. "Although the hotel portion is still very high quality and a nice product."
Hotel guests and employees removed their belongings Thursday from the 214-room property, which carries an estimated $100 million in debt.
The Siena had about 500 employees when it opened in 2001. This summer, about 300 remained, but many were laid off as the property closed its gaming operations and cut back in all departments. The 23,000-square-foot casino shut down its table games in June and closed off its slots earlier this month, leaving only the sports book open in the gaming area.
Joe Buentipo, a cook who also worked in shipping and receiving, said he knew something was going on Thursday morning when security guards set a chair near his door and he was told not to accept any deliveries.
At an 11 a.m. meeting they were told the doors would be closed, he said.
"We had some banquets scheduled; I don't know what they're going to do with that," Buentipo said.
Neither Siena owner Barney Ng nor general manager Clyde Callicott retuned calls Thursday for comment.
The sports book was run by the Club Cal Neva, and Cal Neva president Jeff Siri said winning betting tickets from Siena and futures bets will be honored at the Cal Neva and all sports books run by the Cal Neva.
Those include sports books at the Eldorado Hotel Casino, Boomtown, Terrible's Rail City Casino in Sparks and the Bonanza Casino.
Siri said he's hopeful the Siena's patrons will migrate to the Cal Neva and other downtown properties.
"It hurts us to lose the Siena's (214) rooms, though," Siri said. "We hate to see that."
The Siena had been struggling since its opening in 2001 and had staved off foreclosure last year. The operation declared bankruptcy in August.
According to statements filed in bankruptcy court Wednesday, the Siena ran into a "liquidity" crisis in October and couldn't pay its NV Energy bills. Earlier this year, the property had agreed to pay the utility $50,000 every two weeks to keep the lights on.
The most recent filing states the hotel is temporarily closed, but the debtors remain in "active negotiations" with one prospective investor.
By Oct. 29, the filing states, the Siena will either be able to make a deal that will allow it to "reopen some or all of its operations" or will remain closed and "report to the court with respect to its sale prospects and the relative merits of continuing its sale prospects under Chapter 11 or Chapter 7" bankruptcy.
Gaming experts said that given the current economic conditions and gaming's long-term decline in Northern Nevada, the Siena's prospects are dim.
"It's always regrettable when this kind of thing happens," Eadington said. "The problems at the Siena have been pretty systemic and have been developing for a long time. They are related to the overall decline in the gaming economy for the past 10 years and to the Siena's location, size and lack of ties to other casinos.
"To a large extent, it's been an orphan and it's been isolated."
He said it's increasingly difficult to run a successful gaming property in Northern Nevada, especially one with the added problems of the Siena.
Ellen Oppenheim, the president of the Reno Sparks Convention and Visitors Authority, said the Siena had been making weekly payments on its room taxes since declaring bankruptcy in August. But she said the property still owes back room taxes accumulated before the bankruptcy filing.
The RSCVA doesn't disclose individual room tax revenues, but figuring 214 rooms at a 50 percent occupancy rate puts the Siena's annual room tax bill at about $300,000 per year.
Oppenheim said guests who planned to stay at the Siena are being rebooked into other Reno-Sparks hotels. She said she hopes a new owner can be found to take over the hotel-casino.
"The Siena is a unique property along the river," she said. "It has great potential."
Sunday, October 10, 2010
Siena closes casino floor
Siena closes casino floor
The Siena Hotel Spa Casino temporarily closed its gaming operations on Friday, building a 6-foot wall on its gaming floor around most of its slot machines. The property's hotel, restaurants, spa and sports book remain open.
The Siena filed for bankruptcy protection in Northern California in August -- a strategic move to keep the downtown resort property open while a deal to bring in a partner to help run the property can be finalized.
The Siena's overall debt could be as much as $100 million, according to papers filed with U.S. Bankruptcy Court in Oakland, Calif.
Siena officials could not be reached for comment but issued a news release Friday afternoon announcing that Innovation Capital LLC will serve as its financial adviser to assist the property "in its restructuring discussions with creditors and to pursue various strategic alternatives including securing short-term financing."
"In order to focus on reorganization activities and explore strategic and operational alternatives, Siena has taken the short-term step of closing its gaming floor to customers. The news release said Siena intends, however, to continue providing uninterrupted services to its valued customers in its hotel, restaurants, spa and meeting facilities."
Siena employees on Friday were telling guests and customers the gaming area was closed for renovation.
Joe Santos of Burlingame, Calif., said the Siena was his favorite place in Reno, until it removed the craps tables, because it has some of the nicest rooms in town and he likes the restaurant. The Siena closed its table games in June.
"If they have to renovate, they have to renovate. As long as they renovate for the better," he said.
Dennis Neilander, chairman of the Nevada Gaming Control Board, said the Siena requested temporary closure of its gaming operations. Its sports book will remain open because it is run by the Club Cal Neva of Reno under a separate license.
"They decided to shut down (their) gaming operation and take that bankroll to other obligations as part of steps to make the property viable," Neilander said.
As a condition of granting the temporary closure, the gaming control board required the Siena to maintain enough cash to pay any outstanding tickets, Neilander said.
Gaming was shut down about 4 a.m. Friday, and agents from the board were on hand to observe the final drop about 6 a.m.
Neilander said the Siena is working on proposals to redo the slot floor.
"I think they decided this was the best course of action," he said.
Temporary closures are done by quarter.
The approval runs through the end of this quarter. If the Siena wants to remain closed for another quarter, they can make another request.
Jeff Siri, CEO and president of the Cal Neva, said it will continue to keep the sports book in the Siena open.
"Our sports book's done OK business today, surprisingly," he said, noting the wall that had been placed around the slot machines. "Hopefully we can spruce up the area and stay active. If they can keep the hotel business open, I think it could do OK."
Reno Mayor Bob Cashell said as of 3 p.m. he hadn't spoken with anyone at the Siena yet but had heard it closed the gaming to do a renovation.
"I'm just hoping they're not closing," he said.
Cashell said with other downtown properties shuttered, suspending gaming operations at the Siena could have a negative impact on the city as far as attracting investors.
Expert's insights
The closure, however, isn't likely to have a significant impact on the region's gaming win, said Bill Eadington, a professor of economics and director of the Institute for the Study of Gambling and Commercial Gaming at the University of Nevada, Reno.
"The industry is over capacity at present, it's contracted nearly 25 percent in the last five years," Eadington said. "The closure is not terribly surprising. Customers who would go to the Siena will go elsewhere. There are plenty of empty slot machines to find. It's disappointing for owners and employees, but the handwriting has been on the wall for the Siena for some time."
Eadington said the Siena faced challenges that would make it difficult to succeed despite the economy, such as its location in a rough neighborhood and no partnerships with other properties.
"There are a lot of fundamentals you can point to that say this is a difficult operation under normal times. That's why there's not much surprise in this," he said.
Siena Hotel Spa Casino
•2001: Siena opened in 2001 after a $16 million to $20 million makeover of the former Holiday Hotel-Casino.
•December 2009: The Siena received a notice of default and threat of foreclosure sale from its California-based lender, Bar-K Inc., of Lafayette, Calif., citing an original loan of $50 million.
•March 11, 2010: After three months of reorganization to stave off foreclosure, the Siena plans a big comeback with a new Club Cal Neva sports book. A new nightclub, The Loft, would open in early April, Siena executives said.
•June 11: The Siena announces that it will close down all table games, eliminating about 35 jobs.
•June 22: The Siena faces suspension of its license after several months of delinquency in room tax payments. The Siena owes $135,469 in room taxes from January, March, April and May.
•July 2: The Nevada Gaming Commission gives the Siena a stay of execution on the suspension of its gaming license. Under the order, the Siena must retain $230,000, or an amount determined by a formula based on its casino operations, to pay winners. If it fails to have that amount on hand, it faces immediate closure by state Gaming Control Board agents.
Additionally, the commission orders all casino tax and fee obligations totaling about $150,000 must be paid by July 22.
•July 15: Health-insurance coverage for employees and former employees at the Siena "” which was terminated on June 1 by Hometown Health Providers "” will be reinstated by July 29 if Siena pays its debt to the health-insurance provider. Affected parties receive letters from Hometown Health informing them that their insurance coverage had been canceled, catching many by surprise.
•July 23: The Siena files for Chapter 11 bankruptcy protection in a strategic move to keep the downtown resort property open while a deal to bring in a partner to help run the property can be finalized. The Siena's overall debt could be as much as $100 million, according to papers filed with U.S. Bankruptcy Court in Oakland, Calif.
•Friday: The Siena temporarily shuts down its gaming operations and announces it will work with Innovation Capital, LLC to assist the property in restructuring.
Source: Reno Gazette-Journal archives, research
The Siena Hotel Spa Casino temporarily closed its gaming operations on Friday, building a 6-foot wall on its gaming floor around most of its slot machines. The property's hotel, restaurants, spa and sports book remain open.
The Siena filed for bankruptcy protection in Northern California in August -- a strategic move to keep the downtown resort property open while a deal to bring in a partner to help run the property can be finalized.
The Siena's overall debt could be as much as $100 million, according to papers filed with U.S. Bankruptcy Court in Oakland, Calif.
Siena officials could not be reached for comment but issued a news release Friday afternoon announcing that Innovation Capital LLC will serve as its financial adviser to assist the property "in its restructuring discussions with creditors and to pursue various strategic alternatives including securing short-term financing."
"In order to focus on reorganization activities and explore strategic and operational alternatives, Siena has taken the short-term step of closing its gaming floor to customers. The news release said Siena intends, however, to continue providing uninterrupted services to its valued customers in its hotel, restaurants, spa and meeting facilities."
Siena employees on Friday were telling guests and customers the gaming area was closed for renovation.
Joe Santos of Burlingame, Calif., said the Siena was his favorite place in Reno, until it removed the craps tables, because it has some of the nicest rooms in town and he likes the restaurant. The Siena closed its table games in June.
"If they have to renovate, they have to renovate. As long as they renovate for the better," he said.
Dennis Neilander, chairman of the Nevada Gaming Control Board, said the Siena requested temporary closure of its gaming operations. Its sports book will remain open because it is run by the Club Cal Neva of Reno under a separate license.
"They decided to shut down (their) gaming operation and take that bankroll to other obligations as part of steps to make the property viable," Neilander said.
As a condition of granting the temporary closure, the gaming control board required the Siena to maintain enough cash to pay any outstanding tickets, Neilander said.
Gaming was shut down about 4 a.m. Friday, and agents from the board were on hand to observe the final drop about 6 a.m.
Neilander said the Siena is working on proposals to redo the slot floor.
"I think they decided this was the best course of action," he said.
Temporary closures are done by quarter.
The approval runs through the end of this quarter. If the Siena wants to remain closed for another quarter, they can make another request.
Jeff Siri, CEO and president of the Cal Neva, said it will continue to keep the sports book in the Siena open.
"Our sports book's done OK business today, surprisingly," he said, noting the wall that had been placed around the slot machines. "Hopefully we can spruce up the area and stay active. If they can keep the hotel business open, I think it could do OK."
Reno Mayor Bob Cashell said as of 3 p.m. he hadn't spoken with anyone at the Siena yet but had heard it closed the gaming to do a renovation.
"I'm just hoping they're not closing," he said.
Cashell said with other downtown properties shuttered, suspending gaming operations at the Siena could have a negative impact on the city as far as attracting investors.
Expert's insights
The closure, however, isn't likely to have a significant impact on the region's gaming win, said Bill Eadington, a professor of economics and director of the Institute for the Study of Gambling and Commercial Gaming at the University of Nevada, Reno.
"The industry is over capacity at present, it's contracted nearly 25 percent in the last five years," Eadington said. "The closure is not terribly surprising. Customers who would go to the Siena will go elsewhere. There are plenty of empty slot machines to find. It's disappointing for owners and employees, but the handwriting has been on the wall for the Siena for some time."
Eadington said the Siena faced challenges that would make it difficult to succeed despite the economy, such as its location in a rough neighborhood and no partnerships with other properties.
"There are a lot of fundamentals you can point to that say this is a difficult operation under normal times. That's why there's not much surprise in this," he said.
Siena Hotel Spa Casino
•2001: Siena opened in 2001 after a $16 million to $20 million makeover of the former Holiday Hotel-Casino.
•December 2009: The Siena received a notice of default and threat of foreclosure sale from its California-based lender, Bar-K Inc., of Lafayette, Calif., citing an original loan of $50 million.
•March 11, 2010: After three months of reorganization to stave off foreclosure, the Siena plans a big comeback with a new Club Cal Neva sports book. A new nightclub, The Loft, would open in early April, Siena executives said.
•June 11: The Siena announces that it will close down all table games, eliminating about 35 jobs.
•June 22: The Siena faces suspension of its license after several months of delinquency in room tax payments. The Siena owes $135,469 in room taxes from January, March, April and May.
•July 2: The Nevada Gaming Commission gives the Siena a stay of execution on the suspension of its gaming license. Under the order, the Siena must retain $230,000, or an amount determined by a formula based on its casino operations, to pay winners. If it fails to have that amount on hand, it faces immediate closure by state Gaming Control Board agents.
Additionally, the commission orders all casino tax and fee obligations totaling about $150,000 must be paid by July 22.
•July 15: Health-insurance coverage for employees and former employees at the Siena "” which was terminated on June 1 by Hometown Health Providers "” will be reinstated by July 29 if Siena pays its debt to the health-insurance provider. Affected parties receive letters from Hometown Health informing them that their insurance coverage had been canceled, catching many by surprise.
•July 23: The Siena files for Chapter 11 bankruptcy protection in a strategic move to keep the downtown resort property open while a deal to bring in a partner to help run the property can be finalized. The Siena's overall debt could be as much as $100 million, according to papers filed with U.S. Bankruptcy Court in Oakland, Calif.
•Friday: The Siena temporarily shuts down its gaming operations and announces it will work with Innovation Capital, LLC to assist the property in restructuring.
Source: Reno Gazette-Journal archives, research
Friday, October 8, 2010
Reno's Siena Closes
Reno's Siena closes its casino, keeps hotel open
The Siena Hotel Spa Casino in downtown Reno is temporarily closing its casino but keeping its hotel, restaurants and sports book open.
The Reno Gazette-Journal reports that Siena management is holding a meeting with employees to discuss the resort's plans.
The Siena filed for bankruptcy protection in August in a move to keep the property open while a deal to bring in a partner to run it can be finalized.
According to papers filed with U.S. Bankruptcy Court, the Siena's overall debt could be as much as $100 million.
Reno casinos have been struggling because of competition from Indian casinos and Las Vegas megaresorts.
The Siena Hotel Spa Casino in downtown Reno is temporarily closing its casino but keeping its hotel, restaurants and sports book open.
The Reno Gazette-Journal reports that Siena management is holding a meeting with employees to discuss the resort's plans.
The Siena filed for bankruptcy protection in August in a move to keep the property open while a deal to bring in a partner to run it can be finalized.
According to papers filed with U.S. Bankruptcy Court, the Siena's overall debt could be as much as $100 million.
Reno casinos have been struggling because of competition from Indian casinos and Las Vegas megaresorts.
Saturday, September 11, 2010
Reno: Siena's troubles inevitable
Reno casino’s troubles inevitable, some say
Siena Hotel Spa Casino owner Barney Ng says his casino's downward spiral started with faulty slot machines he purchased from International Game Technology.
But a judge tossed out his evidence _ which Ng says he obtained from a former IGT employee who was fired by the Reno-based slot machine maker because he stole the information. The 2005 decision was part of a back-and-forth series of lawsuits about the Siena's lack of payment on the slots and whether the slot machines were faulty.
"That would have changed everything," Ng said about the information tossed from court.
But casino industry experts say even if the accusations were true, other factors, including Ng's inexperience and a massive loan, have put the downtown Reno casino on the brink of going out of business.
The boutique hotel-casino faces bankruptcy, with debts that could be as much as $100 million. It struggles to pay basic expenses such as power bills, room taxes and employee health insurance costs.
Gambling experts say factors in the Siena's downfall date back to its 2001 opening and go deeper than a judge's decision.
"Well, the location is terrible, the market was declining, 9/11 came into play," said Bill Eadington, director of the Institute for the Study of Gambling and Commercial Gaming at the University of Nevada, Reno. "It was an orphan casino with no ties to any other casinos. Ng had no experience. The whole facility was too small in comparison to what the standard was for successful casinos, even in northern Nevada.
"There were inconsistencies between the hotel rooms and casino floor. It was in a bad neighborhood. The list goes on and on. And to blame it on a software glitch, in my opinion, is not at all credible."
The back-and forth lawsuits between IGT and the Siena is where the evidence emerged that Ng says could've changed his casino's fate.
In 2004, IGT sued the Siena for nonpayment of monthly bills for the slot machines that the company had installed in the casino. The lawsuit also accused the Siena of not paying IGT's cut from the progressive slots.
The Siena countersued, claiming the casino didn't pay IGT because the slot machines were faulty.
As the lawsuits snaked through the court system, Ng's evidence to back up his claims against the slot maker emerged from former IGT employee Baljit Saini.
Before he was fired in 2004, Saini allegedly stole and in 2005 sold IGT's secrets to Ng, according to court papers. Ng acknowledged receiving information from Saini but denies paying for it.
Ng said the secrets proved computer chips used in the machines were faulty, and estimated it cost the Siena about $200 million in the first five years of operation.
"We would have won outright," Ng said, if the data and testimony would have been allowed.
In August 2007, a judge ordered the Siena to pay IGT about $4 million for missed slot machine payments and revenue owed to IGT from progressive slots. A month later, the Siena filed for a new trial, and Polaha granted it in February 2008.
IGT appealed to the Nevada Supreme Court, which ruled in December in favor of IGT and against a new trial.
Now, the case goes back to Washoe District Court, where the Siena has the right to appeal Judge Jerry Polaha's original directed verdict and the exclusion of Saini's testimony and evidence, said John Shaeffer of Los Angeles, Ng's lawyer.
Casino experts and executives point to numerous factors _ other than allegedly faulty slot machines and a lost court decision _ that have negatively affected the Siena:
_Ng was a newcomer to Nevada gaming and did not understand the industry, some experts said. He lacked the savvy to enter a market like Reno, where the local population and visitors had been gambling for generations.
_From the beginning, Ng was saddled with a $50 million loan from his father's investment company, Bar-K. Just paying the interest on a $50 million loan would eat into profits and daily expenses and could move a property from the black to the red, experts said.
_When the Siena opened in 2001, tribal gaming was just taking off in Northern California. Its impact was underestimated by many operators in Reno, including those of the Siena.
_That opening year was also tough on Nevada's tourism industry because of the Sept. 11, 2001, terrorist attacks and its subsequent chilling effect on tourism in the Silver State. The Siena had opened in 2001 after Ng poured between $16 million and $20 million to make over the old Holiday Hotel, which had originally been opened in 1956.
_The Siena has no parking garage, and its parking lot often gets overrun by people attending downtown events.
_The Siena was in a bad neighborhood that was getting worse. The closure of nearby casinos such as the Virginian and Onslow had put the Siena on an island, away from the real action north on Virginia Street.
_Even worse, one block away from the Siena stands the Lakemill Lodge, described by former Siena employees and gaming executives as a notorious flophouse on the edge of downtown Reno.
Ng bristles at the experts' opinions.
"Here's my answer: Everybody can have an opinion as to what went on without knowing, actually, what was going on," Ng said. "They are just opinions, but I am not disrespecting anybody's opinion."
The Siena's location issues don't begin and end with its proximity to the Lakemill, Eadington said.
"It has inadequate access from the freeway for visitors. It is out of the downtown corridor, and it can be a dark and dangerous hike from the nearest casinos.
"It was just a terrible mistake for Ng to buy the property for $3 million and spend whatever he did trying to refurbish it," Eadington said. "It just doesn't make a lot of sense. It didn't make a lot of sense from the outset."
Sunday, July 4, 2010
Reno's Siena Failing to Pay Taxes
What is particularly interesting about this article is that with all the amenities, slot machines, hotel and spa, 300 people are employed.
Where are the thousands of jobs that Beacon Hill would pretend to create?
In early June, the casino closed its table games and laid off about 35 people. About 300 people work at the 214-room property along the banks of the Truckee River.
Nev. regulators hold meeting on Reno casino
CARSON CITY, Nev.
A Reno casino that received a reprieve on back room taxes last week faces another hurdle Thursday when it goes before state gambling regulators over lapsed casino taxes and concerns about its bankroll.
The Nevada Gaming Commission will hold a special hearing in Carson City to consider whether the Siena Hotel Spa Casino's nonrestrictive gaming license should be suspended.
Matthew Kelly, a lawyer for the casino, said plans have been made with various agencies to resolve debt issues.
"The Siena is not seeking to deflect our responsibilities or diminish the seriousness of our obligations," he said Wednesday in an e-mail to The Associated Press.
Under state law, a nonrestricted license is automatically deemed surrendered if the holder falls three months behind on casino fees and taxes.
Dennis Neilander, chairman of the Nevada Gaming Control Board, said the Siena began falling behind in March, but officials delivered a $38,000 check late Friday to cover one month of delinquency. Another $77,000 is owed for the other two months, and $80,000 in annual slot machine fees is due July 1.
"We've never had a nonrestricted licensee fall this far behind on their fees," Neilander said. "We have other properties that are struggling, but they've filed for bankruptcy protection."
The commission also will consider whether the Siena is able to meet minimum bankroll requirements, a protection for gamblers to ensure properties have enough money to pay winnings.
In early June, the casino closed its table games and laid off about 35 people. About 300 people work at the 214-room property along the banks of the Truckee River.
Last week, the Reno-Sparks Convention & Visitors Authority finance committee gave the Siena a year to pay four months of delinquent room taxes totaling $140,000 and keep its lodging license.
Siena general manager Clyde Callicott blamed the delinquency on previous management. He said he inherited debts and a default notice in December on a $50 million loan from Bar-K Inc. of Lafayette, Calif.
Kelly, Siena's lawyer, also blamed the property's financial troubles on a legal battle with International Game Technology over IGT slot machines that failed to work with the casino's management system.
The Siena alleges fraud and deception caused it to "lose hundreds of millions of dollars" in revenues. The case is pending in Nevada courts.
Despite the legal case and Nevada's sour economy, "We are confident the Siena will emerge a prosperous hotel casino," Kelly said.
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