Missouri Orders Gaming Investors to Sever Station Casinos Stake

Station Casinos, which is contracted to manage the Graton Rancheria, was fined by Missouri in 2000.

A report earlier this week in Vegas Inc. said regulators from the state of Missouri ordered investors in Ceasar's Entertainment Corp. "to sever their ties with locals casino operator Station Casinos LLC of Las Vegas, prompting the investors to sell their stake in a Nevada hotel-casino on a rush basis."

went through a bankruptcy re-organization last year. Prior to that time it was Station Casinos Inc., which paid a $1 million fine to Missouri in 2000 over improper contact with regulators. 

The request was for divestiture of investments in the 202-room, 2,000-slot machine Aliante Station hotel-casino in North Las Vegas. The Aliante was one of the old Station Casinos projects, opening in 2008; but Station lost its ownership of Aliante in its 2009 bankruptcy.

For reasons that weren’t immediately clear Thursday, Missouri has been insisting Apollo and TPG sell their Aliante Station stakes even though Station no longer owns the property, its management contract there is expected to end in a few months and Station hasn’t done business in Missouri in a dozen years.

''Missouri doesn’t like Station Casinos,'' one insider said Thursday.

Station Casinos is contracted to manage the controversial complex in Rohnert Park for the first seven years of its operation.

Read the entire article on Vegas Inc online.

Xyiencesucks Dotcom July 31, 2012 at 04:00 AM
The bad blood between Station Casinos and Missouri is assumed to be the sole reason for the request to sever ties. The problem with that theory is that it makes no sense. The more likely scenario is that Missouri feels Station Casinos is still involved in shady business dealings, perhaps even worse than what was done under Frank Fertitta Jr.'s watchful eye. Gaming commissions don't get involved in pulling licenses unless there is some semblance of criminal associations of some kind. You only need to look as far as Full Tilt Poker and Station Casinos launching a partnership with them just before they were raided and the whole operation was revealed to be a Ponzi Scheme. They disbanded the partnership after the fact, but maybe it was too little, too late.
Ernest Giono July 31, 2012 at 03:48 PM
This is just the beginning of what is to come with the casino. Every degenerate in the North Bay Area will migrate here. I saw it at Soutn Lake Tahoe in the 60's and now look at Tahoe - Business is way down and the casinos are starving. New building at Stateline has come to a halt. Rohnert Park is no place for a casino.
Stop Graton Casino July 31, 2012 at 07:04 PM
Station Casinos was in trouble in Missouri way back at the beginning and was fined $1.9 million between 1997 and 2000 for violations such as dumping fill into the Missouri River, allowing a 12-year-old girl to play slot machines and refusing to testify before a state regulatory agency investigating corruption charges. Missouri has also been concerned that the company's owners have strong family ties to the Mafia, Frank Fertitta Jr.'s was involved in a 1980s scandal, in which mobsters skimmed millions of dollars from several Las Vegas casinos. They also had to pay a $475,000 fine in Nevada in 2000 for a complaint the Nevada Gaming Control Board filed against Station for financing an anonymous campaign mailer. Station execs were mad because a Clark County commissioner promised to vote in favor of a Station project, but voted for the rival firm instead. Corrupting the political process is something that's happened here from the beginning. The Fertitta family was heavily mobbed up for years in Texas. Are the sons involved in organized crime? Maybe. Hard to say. Artificially inflated stock prices prior to the big sell-out to Colony Capital a few years ago is what rings their bell now.
Stop Graton Casino July 31, 2012 at 07:04 PM
Obviously, Missouri knows something we don't know for them to have taken this action now. IT'll come to light sooner or later.
Stop Graton Casino July 31, 2012 at 07:19 PM
It could be. The Ponzi scheme was just revealed July 2 of this year. Where did the money go? Did Station Casinos get any? We'll never know, because the Justice Department settled in exchange for full repayment to those who had lost money.


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