MGM Grand to offer private gambling
By Lisa Snedeker
Associated Press
LAS VEGAS — MGM Grand hotel-casino will be the first in the state to offer wealthy gamblers the chance to place their bets in private.
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In a move criticized by a prominent civil rights activist, the Nevada Gaming Commission yesterday unanimously approved an application for Nevada's first private gambling salon for high rollers since the state legalized gambling in 1931.
The MGM Grand Hotel and Casino is betting that by offering private gambling salons the resort will attract more high-end casino customers from Asia and Europe where private wagering is allowed.
"I think you've done an exemplary job in meeting the legislative intent," Commission Chairman Peter Bernhard told MGM Grand representatives.
Tom Peterman, MGM Grand senior vice president and attorney, said the private gambling areas would be in the Mansion Casino, which will have a private entrance from the resort's 29 private luxurious villas reserved for high rollers and other VIPS.
In addition to attracting more high-end casino customers from Asia and Europe where private wagering is allowed, the resort hopes to bring in more celebrities, who prefer to gamble in private.
"We anticipate that 20 (percent) to 30 percent of the players will be new customers," Peterman said. "Celebrities and sports figures can relax without having to worry about the public asking them for autographs."
The Rev. Al Sharpton held a news conference outside the meeting to criticize regulators for approving the salon but ignoring what he said were the company's diversity issues.
The Strip resort, owned by Las Vegas-based gambling giant MGM Mirage Inc., could open the new salon, consisting of three parlor rooms as early as the end of August, Peterman said.
"We anticipate that 90 (percent) to 95 percent of our revenue will be from table games," Peterman said.
The private salon, which could hold about 100 players, would be equipped with high-tech surveillance devices to allow regulators to monitor betting at all times and ensure that the games are fair.
Commissioners agreed with a recommendation by the state's Gaming Control Board that the private gambling salon license be reviewed in two years.
"It's brand new so we don't have any experience with it," Control Board Chairman Dennis Neilander said.
The state's gambling tax forms will be revised to track the private salons' revenues.
Last month Caesars Palace filed the second application for a salon since the Nevada Legislature last year approved letting casinos offer private gambling.
The new private casinos allow gamblers with at least $500,000 in cash or a credit line. Minimum wagers on private casino slot machines and table games will be $500.
Lawmakers approved the change so Nevada could compete for high-rollers.
Gaming Commissioner Sue Wagner, who initially was against the regulation, commended the MGM Grand on its business plan.
"I look forward to seeing how much new business is generated in the course of a year," she said.
MGM Mirage has been under fire by Sharpton's National Action Network for some time. Gene Collins, president of the Las Vegas chapter, filed a complaint with the commission in March and has called for a boycott of the Las Vegas-based gambling giant over what the group says is racism against minority employees.
MGM Mirage established the gambling industry's first diversity initiative to promote more minorities and increase its number of minority vendors and contractors after officials acknowledged shortcomings.
