On 4/8/2014 8:45 AM, Barry Glazer wrote:
> I am neither an accountant nor an attorney, let alone one that
> specializes in bankruptcy, and I don't even know if Nevada statute can
> affect this differently than in other states, nor do I know if there
> are previous examples in Nevada, but...
>
> I DO know that at least one casino chain in another state HAS filed
> for bankruptcy, and that it continued to have a license, to operate,
> and it honored its comps, eventually emerging from bankruptcy.
>
> I believe there are many kinds of bankruptcy, and if operations cease
> and assets are distributed to creditors, I'm pretty sure that comps
> and other benefits of being a frequent player would not only have to
> "stand in line" with other creditors, but would likely disappear
> altogether, since most programs have fine print that they can be
> changed or discontinued at the whim of the casino. But if it's
> "operating bankruptcy" as was the case of which I am aware, emergence
> from bankruptcy is the ultimate goal, and honoring earned comps and
> benefits seems to be a critical element in maintaining an existing
> customer base in order to recover - although, as happens all the time
> without bankruptcy, the conditions of the program can be changed.
>
> At the same time, a HISTORY of bankruptcy, especially a recent
> history, is VERY likely to adversely affect any new applications for a
> casino license, as I understand it - again, not only in Nevada, but in
> other states as well.
>
> --BG
> =================
>
>
> 1d. Re: CET is getting tight on the freeplay
>
> ...I have no idea what this does to the gaming licenses but I doubt
> that being
> in bankruptcy re-structuring would immediately disqualify them from
> holding
> one. But I would think that it puts comps into jeopardy - at
> bankruptcy you
> would be a "credit holder" of CET.
The most well-known example of licensing broke corporations comes from
the multiple bankruptcies of Donald Trump. Nothing about him and his
pathetic business model and practices ever seemed to bother either the
NJ Casino Control Commission or the Division of Gaming Enforcement. Both
of them focused on the really big problems like the square footage of
bathrooms.
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