Binion's to close hotel tower, lay off 100 workers - News

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Nov. 30, 2009
Copyright © Las Vegas Review-Journal

Binion's to close hotel tower, lay off 100 workers

By ARNOLD M. KNIGHTLY
LAS VEGAS REVIEW-JOURNAL

Binion's in downtown Las Vegas will close its 365-room hotel tower beginning Dec. 14. Officials cited the economic downturn for the move.
Photo by Craig L. Moran.

The owner of the long-troubled Binion’s Gambling Hall & Hotel is closing the property’s 365 hotel rooms indefinitely and will cut nearly 100 of the property’s 800 jobs.

Spokeswoman Lisa Robinson blamed the decision to shut down the rooms on Dec. 14 on the economic downturn.

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“This is a result of this brutal economy that has affected Las Vegas,” Robinson said. “We looked at every aspect of our operations and the hotel rooms are no longer competitive in this market.”

In addition to the rooms, Binion’s Original Coffee Shop is being closed and the casino will discontinue offering keno.

The casino, sports book, poker room, and the casino floor cafes and other amenities will remain open.

The Binion’s Ranch Steakhouse on the tower’s 24th floor will close Dec. 13 for an annual cleaning, but will reopen on Dec. 28, Robinson said.

Las Vegas Mayor Oscar Goodman, long a champion of downtown redevelopment, called the hotel’s closing disappointing.

“The bad news is there are going to be a lot of people out of work,” Goodman said during a press conference held in his office to discuss Binion’s. “That’s a shame.”

News of the Binion’s hotel closing comes a week after the new Golden Nugget opened a new 500-room tower.

Robinson said Binion’s owners – TLC Casino Enterprises – determined that occupancy and average daily room rates at the hotel were too low to make sense to continue operating the rooms, Robinson said.

“With the plummeting room rates in Las Vegas, we just weren’t able to keep it competitive,” she said.

Binion’s rooms rates range from $23 per night on week nights to $54 per night on the weekend until the hotel closes.

Average daily room rates declined 24.7 percent in Las Vegas the first nine months of the year, with hotel occupancy slipping 5.6 percent, according to the latest numbers from the Las Vegas Convention and Visitors Authority.

The hotel is offering to move people with reservations at Binion’s to the 694-room Four Queens across Fremont Street, Robinson said.

Both hotel-casinos are privately owned by Terry Caudill’s TLC Casino Enterprises, which acquired Binion’s in January 2008 for $32 million.

A state gaming law requiring casinos with nonrestricted gaming licenses to have hotels will not affect Binion’s license because the property was open before the regulation was approved, Gaming Control Board member Randall Sayre said Monday.

The announcement, however, was just the latest in a long string of problems for the historic downtown casino, which was founded in 1951 by maverick gambler Benny Binion as the Horseshoe Club.

In 2004, regulators swooped in and closed the casino – then known as Binion’s Horseshoe – to ensure former owner Becky Binion Behnen could pay the property’s mounting debts.

The casino has changed hands three times since Behnen sold the property to Harrah’s Entertainment.

Harrah’s owned the property just long enough to strip it of the Horseshoe name and the popular World Series of Poker brand, which Binion’s had hosted since 1970. It then sold the property to MTR Gaming, which reported millions of dollars in losses during its tenure.

Caudill purchase of the property hasn’t stopped the problems.

TLC is fighting numerous lawsuits from owners of the land underlying Binion’s who are seeking payment for their leases or to increase the rent.

At least four of nine parcels under the main casino and hotel are owned by outsiders who charge the hotel rent.

The latest lawsuit filed in August by the owners of about a quarter of an acre underneath Binion’s is seeking $19,594 per month in rent under an agreement dating back to 1960.

The property’s previous owner, Chester, W.Va.-based MTR Gaming, also sued Binion’s in August, saying TLC has failed to pay rents due to landowners.

Although the lawsuit was settled for undisclosed terms, MTR said at the time TLC was in default on at least two lease agreements.

Robinson said the land leases, which are locked in at fixed rates, have contributed to the property’s economic woes.

Goodman said that despite the Binion’s developments, there’s still good news downtown for those willing to see it.

He mentioned the construction of the Lou Ruvo Brain Institute and the Smith Center for the Performing Arts, and the performance of the Las Vegas Premium Outlets and the World Market Center as positives.

He stuck by the city’s ambitious redevelopment plans that include a new city hall, two proposed new casinos, a sports arena and a reopened Lady Luck casino.

“We have to have a greater resolve than we did before the (Binion’s) closure,” Goodman said. “We need that kind of optimism here.”

Contact reporter Arnold M. Knightly at aknightly@reviewjournal.com or 702-477-3893. Review-Journal writer Alan Choate contributed to this report.

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Please enter your name Name: Please enter your email Email: Please enter a comment COMMENTS : (word count limit is 300) You have reached the maximum number of words allowed Current Word Count: Note: Comments made by reporters and editors of the Las Vegas Review-Journal are presented with a yellow background. Ovomit wrote on December 06, 2009 06:00 PM: Dis be change I can belive in!! Gee Bill wrote on December 01, 2009 11:47 AM: You are right Bill. hold a meeting in Boston or San Fran. No one drinks whena t a meeting there. What a stupid comment, Bill. Any chance Jack will buy it back? He made $900 Mill in the Shoe buyout 10 yrs ago. Dewayne wrote on November 30, 2009 10:06 PM: I guess Terry will have to go back to running all of his Magoo's properties in the ground. Oh wait, I think he did that already.. Bill wrote on November 30, 2009 09:04 PM: "All travel to Las Vegas from Federal agencies are now under the microscope! (This is not the case for San Diego, Miami, New York, or anywhere else)." Rightfully so!! My company used to have meetings in Vegas. Absenteeism from all night partying was very high. Those that did manage to show up were half drunk and hadn't slept. What kind of 'meetings' can you have like that? It was all just a complete waste of money. People are people. Put them in Las Vegas, pay stupid money to hold meetings, and you have water down the drain by corporations. I don't blame them one bit for not having meetings here any longer. The government is right. Same thing happens in there conferences held in LV. John wrote on November 30, 2009 09:00 PM: All of the things Goodman notes as to a positive future for downtown (an arena, reopening of the Lady Luck, 2 proposed new casinos, etc.) are all just PIPE DREAMS. They won't happen any time soon. The land leases underneath Binion's is going to bring the whole deal down, and the fool known as Terry Caudill should have known that. What a sucker. wil wrote on November 30, 2009 08:52 PM: Thats actually a good idea for the homeless to stay there at least that can take a tax loss... Becky was cluless... she didnt want to keep leasing the million dollars and cancelled the steak specials... go figure You deserve it wrote on November 30, 2009 08:36 PM: How is that hope and change you voted for working out for all of you kool aide drinkers now? Harry Reid, You Are the Best! wrote on November 30, 2009 08:24 PM: Jobs lost at Ely Power Plant – $135,000,000 in sunk costs to be passed on to Nevada ratepayers (Very Soon) 1,600 Construction jobs lost to build the facilities in Ely 200 Operations jobs lost Jobs lost at Yucca Mt- 1,200 2,500 Construction jobs lost to build the facilities at the Nevada Test Site 500 Operations Jobs (Since Yucca is the law of the land, it still goes forward, but without the Nevada workforce) Lost corporate travel business from Obama's anti-Vegas statements - 6 Large Corporate cancellations, and climbing (One hundred million dollars in impact so far). Economic Stimulus bill supported by Reid allows the Government to BAN TRIPS TO VEGAS due to excessiveness. As the RJ stated, “ An amendment to the $787 billion economic stimulus bill could have some unpleasant fallout for Las Vegas” All travel to Las Vegas from Federal agencies are now under the microscope! (This is not the case for San Diego, Miami, New York, or anywhere else) Massive cutbacks in flights to and from McCarren 13.0% or worse. Unemployment for Las Vegas! Nevada was shortchanged on the crumbs that we did receive from this multi-billion dollar stimulus. Reid was to blame for our misfortune Let us not forget what Harry specifically ensured what would NOT be in the bill,,, E-Verify. For those not familiar with it, it helps ensure that only legal U.S. citizens get jobs. $1,000,000,000,000.00 in debt to be paid by current taxpayers and their kids Harry Reid’s negative impact on Nevada,,,, PRICELESS !!!! Simple Reality wrote on November 30, 2009 08:08 PM: Another victim to a bleeding economy - no surprise there; however, the surprise could be that current local administration is ignorant to the scenario that continues to plague the valley. People losing their jobs, homes, health care, and general quality of life will not visit a city whos entire economic cycle is based on luxury spending (i.e., gambling). Why would any other industry, outside of gaming vendors, ever have a desire to locate to this valley? That requires an educated workforce - the last time I checked - this city's education infrastructure is in the gutter. The state & local administration has been preaching for decades about expanding and diversifying the valley so this place is not dependent on just one industry - and guess what. "It's never happened". Does anyone find that just a little odd? What elected official is going to buck the "status quo" and ruin their individualistic chances to get reelected? Scott wrote on November 30, 2009 08:06 PM: let the tramps move in & give them a Obama stipend brother the only thing we have to Fear is... Read All Comments