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Siena Hotel Spa Casino given license extension

Posted on July 3rd, 2010

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Siena Hotel Spa Casino is still operational after Nevada State regulators gave the casino a temporary extension of their gaming license, but with many restrictions. The casino is said to be monitored daily from the Nevada Gaming Commission. The Commission recently halted an order to suspend the operations of Sienna Casino for the reason of not having enough money to pay winning players. Nevada Gaming is now imposing daily monitors and certain financial conditions in order to remain in operation

Some of the conditions imposed with the casino is having to maintain $230,000 or another amount derived from casino earnings, whichever is higher in on hand cash. If this amount is not met, Gaming Control Board agents will enforce an immediate closure. This is a daily monitor, so the casino must have that amount on a daily basis. In addition, Nevada Gaming Commission also ordered for all casinos and gaming facilities to pay taxes and fees of $153,000. This needs to be settled before July 22. The Gaming Control Board ordered the suspension of Siena’s operations because of 2 violations: being delinquent in taxes for the past 3 months, and not having the minimum cash on hand for casinos to pay out winning players.

This will be the first time that any regulating body is imposing such kinds of requirements, let alone a casino risking closure due to not having enough cash on hand. Other casinos in financial distress often opt to filing for bankruptcy, since this status can enable any company to still operate until debts are settled. However, Siena Casino owner Barney Ng reasoned that filing for bankruptcy will only spell the ultimate “death” for the company. Lawyers of the casino and owners are said to have been in talks with Club Cal Neva owners offering to take over operations for Siena, but no final talk has been reached.

Nevada State laws dictate that licenses for casinos are automatically taken when tax obligations are not paid for a span of 3 months. In attempts to do last minute amends, Siena paid $38,000 for a month’s worth of late taxes. The commission did not appreciate the attempt, however and is not partial to Siena’s proposal to operate by only paying a portion of the unpaid taxes. John Moran, Commissioner to Nevada Gaming says keeping Siena open “ is not in the public interest to keep that establishment open” if the casino will not agree to pay for back taxes. The commission opted to monitoring Siena’s daily financial activities making sure it is complying to the commission’s requirements. Members of the commission voted for the move, but 2 members, Commissioner Randolph Townsend and Chairman Peter Bernhard have other thoughts. They are both concerned on what the public may think of the state’s gambling industry since a casino such as Siena is still operating even under unstable financial conditions. Siena’s efforts came in “too late” says Bernhard.

Siena Casino has been experiencing finacial downfall earlier in the year. The casino closed some of its games and even let go of some 35 people in June. Only 300 employees now work for th casino. The casino has unsettled amounts in taxes with different companies. Siena owes $140,000 for 4 months of unpaid taxes due to Reno-Sparks Convention & Visitors Authority finance committee. The casino is given a year to settle the debt or its lodging license will be revoked.

$400,000 is also owed to NV energy, and the energy company agreed to have bi weekly payments of $50,000 to keep the casino’s electricity. Siena management blames former business heads for the current financial slump the casino is going thru. Current Manager Clyde Callicot has said to inherit $50 million in debt from Bar-K Inc.