Reno Gazette-Journal from Reno, Nevada • Page 19

Ml ami Mm WEDNESDAY JANUARY 18. 1995 TODAY'S GAMING TOURISM SS Grans Qrais sues former to Hacienda deal: Company claims William Bennett is doing an end run in purchasing the Las Vegas Strip hotel. the property even after another board meeting in November at which time the board authorized negotiations for the Hacienda purchase. In addition to asking that Bennett's planned purchase be stopped, the suit asks for damages from Bennett and for the company to be assigned all his rights to buy the Hacienda. No date was immediately set for a hearing on the dispute.

Bennett was forced out as chairman of Circus Circus last summer, following a stockholders' meeting at which he was criticized for the company's recent poor stock showing. Circus Circus operates eight casino properties in Nevada, one in Mississippi and has an interest in a Windsor, Canada casino. It is also developing the Silver Legacy resort in Reno with the Eldorado. company could buy the Hacienda cheaper if it waited longer, the suit said. Bennett, who still owns 7.5 percent of the stock of the company he helped create, announced last week that he would buy the Hacienda from Sahara Resorts Inc.

and turn it into a South American-themed resort. Bennett, who did not respond to a call for comment on the suit, said he would resign from the Circus Circus board if he bought the resort. The value of the 37-year-old Hacienda is not in the 900-room hotel, but largely in its location near the busiest corner in Las Vegas, the intersection of the Strip and Tropicana Avenue, and its proximity to the new Russell Road interchange with Interstate 1 5. Circus Circus owns the Excalibur on one corner of lion purchase of the Strip resort. The suit contends that, before his ouster as chairman, Bennett had planned to announce at a stockholders meeting last July the plans of Circus Circus to buy the Hacienda and its 47 acres of land.

The suit also disclosed that Circus Circus wanted to buy an adjacent 74-acre parcel and merge one side of an entire block of the Strip into a huge megaresort. The planned purchase was put off, however, after Circus Circus president Clyde Turner made a "tactical determination" that the By Tim Dahlberg ASSOCIATED PRESS LAS VEGAS Circus Circus Enterprises Inc. claimed Tuesday that its former chairman went ahead with his own plans to buy the Hacienda hotel when he knew the company wanted to buy the hotel and develop a huge megare-sort on the Las Vegas Strip. The allegation came as Circus Circus filed suit in state court, seeking an injunction that would stop William Bennett from proceeding with his planned $80 mil RADIO HELPS CASINOS SPOT BIG A look at the online system that allows casinos to monitor slot-machine play at the touch of a few buttons. I Six computers I I il keep the software 1 VS I that runs the ft I IrfcTiTffffiTH I I I nohunrtr an4 4ha I I Casino stocks: Listings and more news about the gaming industry, page 3C.

the property, and its pyramid-shaped Luxor resort is next door. The Hacienda is just south of the Luxor, with the 74-acre undeveloped parcel owned by a California investment group next to it. The suit contends that Bennett was at an Aug. 25 meeting of the Circus Circus board at which a five-year forecast was delivered that included a plan to build a $400 million resort on the 74-acre property and spend another $200 million connecting the four properties into one giant megaresort complex. The suit claimed that Bennett went ahead and negotiated to buy SPENDERS Gabriel MorbnGazette-Joumal Chrysler earned $3.7 billion in '94 DETROIT Strong sales of cars and trucks and sharply reduced spending on marketing helped make 1 994 the most profitable year in Chrysler history.

The No. 3 U.S. automaker's $3.7 billion earnings, $10.1 1 per share, will translate to fat profit-sharing checks or bonuses for its employees. Kodak plans alliance to enhance photo CD ROCHESTER, N.Y. Eastman Kodak Co.

formed an alliance Tuesday with a software imaging company to enhance Photo CD, a pioneering product that captures images on a computer disc but has so far been a consumer flop. The alliance is the first in a series that Kodak plans with electronics companies aimed at accelerating the company's critical transition from chemical-based photography to digital imaging. Playboy magazine has selected the 1995 Porsche 91 1 Carrera Coupe, distributed by Reno-based Porsche Cars North America, winner of its Car of the Year Award. American Airlines Sabre computer reservations system has created a no-frills booking service aimed at low-fare carriers. Dallas-based Southwest Airlines Co.

is the First carrier to sign up. Union Pacific Corp. boosted its hostile bid for Santa Fe Pacific Corp. by 6 percent to 1 8.50 a share, or $3.5 billion. Tom Fuetsch, 4 1 got his start in the gaming industry 1 8 years ago as a cashier at the Club Cal-Neva in Reno.

He has been named executive vice president of gaming operations for John Ascuaga's Nugget. What are the keys to your success? "I Fuetsch hire the best people I possibly can. 1 worked my way up from the ground floor, so I can understand what is going through the mind of each of my employees." How did you prepare for your career? After going into the gaming industry, from a position as sales manager for a local engineering firm, Fuetsch went back to school at the University of Nevada, Reno to get his degree in business. Who have been your inspirations in the industry? "I was very fortunate to start at the Cal-Neva, where the owners (Warren Nelson, Jack Douglass, Howard Farris, Ad Tolan and Leon Nightingale) had been in Nevada gaming for 50 years. I'm also fortunate to work for John Ascauga.

He was really one of the pioneers in the industry." To nominate a business person for "The Road to Success, "call the Gazette-Journal's Business Hot Line, 324-0225, code 8256. Clarion slots: High technology zeroes in on players. By James Robbins GAZETTE-JOURNAL Strolling through the gaming floor of the Clarion Hotel Casino, Jack Kalla holds up a small computer device about the size and shape of a walkie-talkie. The Clarion's special projects manager then types 1 500" on the device, presses a button and waits. In a few seconds the machine tells him which of the 1,000 slot machines in the casino are "hot" and have recently had 1,500 or more coins played in them.

He then types in the identification number of a dollar slot machine in front of him, and the device displays on its small touch screen the name of the patron using the machine, how long the player has been there, how many coins he's played and how much the machine has paid out. If the customer has been there a while and bet a significant amount of money (whether the player won is not important), Kalla can then extend a complimentary room or meal to the guest to make him feel more at home. More important, the casino instantly has invaluable business information, such as which games are popular, who the best customers are and whether or not the casino's marketing strategy is working. See TRACKING on page 3C information about I the customers WrS xrvNv HV 1,000 slots VXVSl IkifXS machines are VX' 'jfVtf connected to KSxXv the network VXS Jsmi 1 1 John Smith I I 7 Vfhis portable ovice allows the supervisor to keep track of the Tf the customer EARNINGS Hilton Hotels reports profit climb of 18 BEVERLY HILLS, Calif. (AP) Hilton Hotels Corp.

reported an 18 percent increase in fourth-quarter profit Tuesday. The company earned $38.1 million, or 79 cents a share, in the fourth quarter of 1994, compared to $32.3 million, or 67 cents a share, in the fourth quarter of the previous year. Fourth-quarter hotel occupancy increased from 64 percent to 68 percent, and the Las Vegas Hilton posted an especially big in-" crease after the debut of a new gaming facility and new rooms, the company said. Nevada occupancy was 91 percent for 1994, up from 89 percent a year ago. The company owns the Flamingo Hilton-Reno and the Reno Hilton.

"We are extremely pleased with our results in both the fourth quarter and full year 1994," said Barron Hilton, chair man and chief executive officer. "Improved economic condS, tions and major international' special events such as the World Cup helped spark this lodging in?" dustry recovery," he said. The Waldorf-Astoria, New York Hilton and Towers, Chicaj go Hilton and Towers, San Fran- cisco Hilton and Towers and New Orleans Hilton Riverside also posted strong increases, the company said. For 1 994 earnings were $121.7 million, or $2.52 per share, up 1 5 percent from $102.7 million, or $2. 14 per share in 1993.

ment by federal prosecutors that Bally former president pleaded guilty to a felony charge connected with the collapse of two Louisiana video poker companies alleged to be controlled by the Gambino, Genovese and Marcello crime families. Alan Maiss, the ex-Bally official, admitted knowing that he was dealing with a person not licensed to conduct video poker activities in Louisiana, prosecutors said. Sam LeBlanc, an attorney for Bally, said an extensive FBI investigation had determined that the company was the victim of the alleged scheme after reviewing 3,300 hours of tape-recorded conversations. I ST I Source: Gazette-Journal research or whether the Star would reopen. Star owner Louis Roussel III recently said he plans to move the riverboat later this year, perhaps to Jefferson Parish.

Another river-boat, owned by Bally Entertainment and local businessman Nor-bcrt Simmons, is slated to take over the berth in the spring. Connick's spokeswoman, Zuli Jemanez, would not directly confirm that Connick planned charges. However, she said, Connick gave the Star "a couple of options and they elected to shut down." The Star, opened in late 1993, has remained dockside throughout most of the time it has operated. casino's P. slot-club Photo by Jean membership pixondazetie- card Identifies Joumal theplayer- 8 1 A.

1 1 i 1 ir A i Fearing criminal charges, Star halts operation in New Orleans asks for quick hearing on ban NEW ORLEANS LAND CASINO Bally Gaming NEW ORLEANS (AP) A major slot machine manufacturer asked the state casino commission on Tuesday for a quick hearing to appeal the chief regulator's order banning it from doing business with the New Orleans land casino. Bally Gaming Inc. was declared unsuitable last week by Wilmore Whitmore, the president of the land casino regulatory agency. Whitmore cited involvement with companies allegedly tied to organized crime in making his decision. But an attorney for Bally Gaming said a federal investigation determined that the company was the unwitting victim of an alleged scheme by three organized crime NEW ORLEANS (AP) The Showboat Star Casino shut down Tuesday after learning that District Attorney Harry Connick planned to charge the operators with illegal dockside gambling.

"Showboat is protecting itself against the threat of a misdemeanor indictment that could jeopardize its gaming license in this and other jurisdictions," said a statement issued by the Star. Manager Nick Gullo said Con-nick was threatening a misdemeanor charge because the Star continues to stay dockside rather than cruise. Gullo said employees were on standby, but he was unsure when Market Day families to infiltrate Louisiana's video poker industry. Harrah's Jazz the land casino operator, planned to use 647 Bally slot machines and a computer system designed to monitor their use by players and provide security. The initial contract is valued at $6.2 million, casino officials said.

With a temporary casino scheduled to open April 23, time is of the essence, Bally officials said. Harrah's Jazz officials, who said they planned to use the contract with Bally for about a fifth of the total number of slots in the casino, can go to other distributors if the company is not cleared. The ban followed an announce DOW (Industrials) NYSE Diary I DaSaw: S3 Composite volumt: 400,132,480 i 1W4 vg. comp. 3S2Jgg .590 NYSE SIP 5dy Ml EX StPMidCap, NASDAQ Stocks: Stocks finished mixed Tuesday after strong economic data renewed fears of higher interest rates and derailed a two-day rally.

Still, investors apparently remained cautiously optimistic. Of the major market indicators, only the Dow Jones industrial average ended with a negative finish, falling 1.68 points to 3,930.66. Advancing issues outnumbered declines by about 1 1 to 8 on the New York Stock Exchange. Among actively traded NYSE issues, Chrysler fell 1 to 5 1 The company released strong quarterly earnings but they were still below Wall Street expectations. In Nasdaq trading, Intel lost 1 's to 67.

The company said after the close of trading that fourth quarter earnings were 86 cents a share vs 1 .35 a share in the same three months last year. Many investors apparently anticipated the report. Treasury bills: Interest rates on short-term Treasury securities fell in Tuesday's auction to the lowest level in three weeks for three-month bills and in nearly two months for six-month bills. The Treasury Department sold 1 3.5 billion in three-month bills at an average discount rate of 5.77 percent, down from 5.87 percent last week. Another 1 3.5 billion was sold in six-month bills at an average discount rate of 6.

1 9 percent, down from 6.42 percent. The new discount rates understate the actual return to investors 5.94 percent for three-month bills with a 1 0,000 bill selling for $9,854. 1 0 and 6.48 percent for a six-month bill selling for $9,687.10. In a separate report, the Federal Reserve said that the average yield for one-year Treasury bills, the most popular index for making changes in adjustable rate mortgages, fell to 7. 1 2 percent last week from 7.24 percent the previous week.

Donds: Treasury bond prices ended mostly lower Tuesday as new evidence of economic strength suggested inflation remains a threat and rekindled fears that the Fed will raise short-term interest rates. But the Treasury's main 30-year bond rose. The price of the bond was up about point or $2.50 per 1 ,000 in face value. Its yield, which moves in the Sposite direction, dropped to 7.76 percent. Currencies: The dollar posted modest gains Tuesday against other major currencies in domestic dealings as new government reports led to renewed speculation about interest rate hikes.

The dollar was trading at 1 5330 German marks late in the day in New York, up from 1 .5308 marks late Monday. In late New York trading, the dollar was quoted at 99. 1 3 Japanese yen, up from 98.40 yen late Monday. Amfed Financial 22 44 Amserv Inc. 2Vi Va BankAmerica 42Vz -V Clorox 56 -y Coeurd'Alene 17 Comstock Bank 7V t- R.R.

Donnelley 30 Echo Bay 10Vb Vs First Interstate 73 FirstMiss Gold 7 ft FMCGold 3Vs Gannett 52 General Motors 41 4fe GlamisGold 8 Granite Const 20V4 V'2 Harding 6 Nevada Power 20 Newmont 36Vs Pacific Telesis 28 J.C. Penney 41ft -V Radica Games 4 -V Reno Air 4 -V'e Rotech 28 V2 Santa Fe Pac. Gold 12 Vi Sierra Pacific 19 Sierra Tahoe 8'A -va Southwest Gas 137 US Bancorp 24Vj V4 Bob Ostrovsky, a lobbyist for the Nevada Resort Association, complained at a Senate Finance Committee hearing on SIIS that his clients have a hard time getting employee medical treatment records so the companies can keep track of the treatments. SIIS Assistant General Manager Cecilia Colling said J'that information is available employers" and assured critics that SIIS is doing its best to work with businesses. Is there a business issue you would like followed? Call the Business Hot Line and tell us: 324-0225, code 8256.

For questions or comments: STEVE FALCONE BUSINESS EDITOR PHONE, 788 6322 FAX, 788-6458 1.