Reno Gazette-Journal from Reno, Nevada • Page 20

6B Reno Gazette-Journal Friday, April 12, 1991 LEGISLATURE Small casinos push for bill which would ease strict auditing standards come from the smaller casinos the measure. Committee members briefly discussed the issue but tabled action until later. But Assemblyman Joe Elliott, R-Carson City, tried to sum up the argument from Ihe small clubs. "Basically, the bottom line; is that $3 million isn't what it used to be," he said. 2 Basically, the bottom line is that $3 million isn't what it used to be." J08 Elliott Assemfclyman putting all their cards on the table.

"These are not really your mom-and-pop grocery stores," he said, adding that many of the 50 casinos affected by AB424 are "full-blown" casinos, complete with table games and sports books." Bible cautioned the lawmakers that the measure would allow $18 million in gaming revenues "to escape the scrutiny of an independent audit," claiming that such a system amounted to little more than an "honor system." He added that most of the problems with undemaid revenue AB424 would lift the S3 million threshold to SIO million, and affect about 50 current casinos, according to Gaming Control Board figures. The small operators, including John Woodrum who owns the Klondike Inn in Las Vegas, now have to meet many of the same audit and internal review requirements demanded of mega-resorts on the Las Vegas Strip. Woodrum said that, unlike large operators, expenses for costly audits "come out of our front pockets." "It's antiquated. Times have changed." he said, noting that even a slot machine has increased its expected take as much as 10 By Mark Evans ASSOCIATED PRESS CARSON CITY "Mom and pop" casinos want a break from stringent auditing standards, but regulators said Thursday that the clubs would be left under an "honor system" for paying millions of dollars in taxes. Backers of the measure said gaming regulations require detailed audits of casinos grossing more than $3 million, and that hurts the small clubs.

Ray Koon of Independent Nevada Casino Operators said the clubs must fork over as much as $75,000 each year for the costly auditing process. I'm just a plain old dirty-assed gambler," he said. "(But) somebody's got to do something to help the little people." He said he has had to close one of his casinos for up to nine weeks at a time just to reduce revenues to keep it below the threshold. He added that reporting standards require added personnel to keep track of books and other security measures. "It takes the power away from these little people, and its just not right," Soper said, adding after the meeting that "the little people are what made this state." But Gaming Control Board Chairman Bill Bible questioned whether the "little people" were GazetteJournal Classifieds Get Results! 322-2337 times over the past several years and that the $3 million threshold is too low for modern times Irwin Soper, who owns three small casinos, put the case more bluntly.

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