Nevada Prepares for Casino Gambling Operators to Bankrupt
The combination of out-of-control expansion and one upmanship, misguided corporate policies, and the effects of the recession have caused some of the largest casinos in Nevada to teeter on the edge of bankruptcy. The state Gaming Control Board is scrambling to get ready for any gambling operators declaring themselves bankrupt, so as to minimize damage to the local economy.Regulators have formed a team of financial experts, accountants, and auditors to help expedite restructuring plans and debt negotiations should any of the casino gaming companies stumble.
"Already, there are a few large gaming companies in bankruptcy, along with a few smaller licensees," the chairman of the board, Dennis Neilander, said. "More are anticipated."
Neilander cited the existing company failures of Herbst Gaming and Tropicana Entertainment, as well as the warning statements issued by MGM Mirage, Harrah's, and Riviera.
Station Casinos is currently negotiating a framework to restructure its debt. The company faces being forced to sell its assets to rival Boyd Gaming if the talks do not prove successful.
Herbst is actually ceding control of its fifteen regional casinos located in Iowa and Missouri, as well as Nevada. The company hopes bankruptcy proceedings will allow it to retain control of its slot machine located at stores, bars, and restaurants throughout Nevada.
Gaming is responsible for more jobs than any other industry in Nevada. Regulators want to ensure corporate upheaval does minimal damage to employment and state revenue.
