Las Vegas, Nevada. More Cash, More Problems
4th March, 2008
Casinos and clubs in Las Vegas are again awash with cash. The increase in cash handling in Las Vegas is said to be reminiscent of the Vegas early days.
The IRS (Internal Revenue Service) are conducting investigations into two of the biggest casino clubs in the Vegas strip, Pure at Caesars Palace and LAX at Luxor, regarding the potential abuse by employees and managers of new cash flows. The greater worry to casino executives and gaming regulators is the damage that the case could have on the reputation they have built up of a modern Las Vegas with transparent and legitimate businesses.
Many people, including the Gaming Control Board Chairman, Dennis Neilander, do not recall any occasions where the IRS have conducted raids since the 1980s. He commented that his agency will be watching the IRS investigation closely and that they are prepared to take legal action over any alleged violations. They have also been informed by many casinos that they are carrying out their own in house investigations and reviews of their cash practices.
Pure Management, who operate both casinos, have seen their revenues grow very quickly in the last five years, suspiciously jumping from £25million to over £120million. Neither Pure Management or the IRS have commented much on the issue, but Pure Management have said that they are “fully cooperating and look forward to a quick and satisfactory resolution.”
Some operators are now concerned about the possibility of anything illegal happening. Gary Thompson, a spokesman for Harrah's Entertainment, said: "If there was something illegal going on that would obviously be of great concern to us. But we don't know if there was any such activity going on."
All Vegas operators are looking forward to the investigation being resolved quickly so that it does not damage their reputation or business. We will keep you updated on the progress of the investigation.
