License for unused Vegas high-roller gambling salon renewed

CARSON CITY, Nev. (AP) - A license for a private salon for high-rolling gambler at the MGM Grand in Las Vegas was renewed Thursday despite concerns by a Nevada regulator that it's never been used as intended. The state Gaming Commission voted unanimously for the renewal, with the chairman, Pete Bernhard, saying he wasn't going to second-guess the MGM's judgment in maintaining the private salon, the first in the state when licensed in 2002 and now one of only three in Nevada casinos. Bob Moon, marketing chairman for MGM Mirage, said in response to questions that business might improve if regulators would ease a requirement that the salons be open only for players with $500,000 to spend and willing to bet $500 minimums. Commission member Art Marshall said he had seen a similar salon at an Indian gambling casino in California where a gambler from Nevada lost $10 million - money that could have stayed in this state. Marshall added he had some initial concerns about high-rollers from foreign countries but now his advice to the MGM Grand is, "Just bring customers." Moon said that with post-Sept. 11 security upgrades, it's tougher for some foreign gamblers to get visas so they can come to Las Vegas. He also said that despite the lack of use of the salon as intended it's still "a definite tool to attract new business to this state." The renewal had been endorsed at an Aug. 11 state Gaming Control Board on a 2-1 vote, with board member Bobby Siller voting "no." Siller said he hadn't heard a credible explanation for the non-use of the salon by heavy-spending gamblers. Siller also said a lot of work went into creating the regulation that allowed such salons - the first step away from a requirement dating to 1931, when Nevada legalized gambling, that the games be conducted in public areas. In the early days of Nevada gambling, the public area rule guarded against backroom cheating, regulators said. But with the use of cameras and other security devices, that's no longer an issue. Lawmakers approved the law allowing private salons in 2001, at the urging of resort operators who said Nevada needed to compete with other gambling locales where private wagering is allowed, especially in Europe and Asia.