Longtime casino licensee Michael Gaughan III, son of South Point Casino owner Michael Gaughan, drew criticism Thursday from Nevada regulators for not promptly replying to requests for information as part of his renewed licensing. At one point, Nevada Gaming Control Board Chair Mike Dreitzer wanted Gaughan referred to the state attorney’s general’s office for possible discipline, but the other two Board members did not advocate such action.
Gaughan, who was last approved by regulators in 2011, was recommended for a new license as part of his ownership share in Stockman’s Casino in Fallon. There were no time limits put on the recommendation.
Clarity Game, of which Gaughan is a co-owner, acquired the property in September 2024 for $9.2 million from Full House Resorts. Gaughan was working under a one-year limited license for his ownership stake in the casino that allowed him to participate in the daily management.
Gaughan addressed the Board regarding the documents, citing the significant amount of information required, because his financial situation had changed considerably since the last time he was licensed. An issue arose where he and his wife had a cyberfraud security breach and the hackers got access to several bank accounts. That made it difficult for him to access and retrieve certain financial records and statements requested for the investigation. He said it took time to obtain replacement records and many weren’t easily organized.
Gaughan said he takes seriously the importance of providing timely and complete information to the Board and apologized. “It was never my intention to slow the investigative process.”
Dreitzer said there’s no doubt Gaughan is qualified to be a license holder for Stockman’s Casino. He said in this case, however, Gaughan’s lack of response was the issue, while understanding the problem of cyber fraud.
“The problem is that you ignored the agent repeatedly over what amounts to a period of nine months and that’s simply unacceptable,” Dreitzer said. “By my count, you have been a Nevada licensee for more than 36 years and have held approximately 13 licenses. Of all people, and certainly with the name Gaughan that has so much respect in this city, you should have understood this period of time ignoring repeatedly the agent for requests up to nine months is unacceptable.”
Dreitzer said agents were more than willing to work with Gaughan to have him get his paperwork together, because that’s not how they operate.
“You’re as veteran as anybody I know in gaming and how this all works,” Dretizer said. “I appreciate the words but words aren’t enough. It’s a significant concern.”
While supporting the licensing, Dreitzer then said he wanted to refer the matter to the attorney general’s office for “a measure of discipline related to this matter and that process will unfold as it unfolds.” No other Board members brought that up in their comments and in their recommendation for licensing.
Gaughan said he’s willing to face any punishment. He wished he would have sent off some of the documents he’d obtained to the Board instead of waiting for everything requested.
As of April 1, Gaughan’s company will have ownership of Stockman’s for one year. It’s been successful, after changing about 40% of the floor, and have had a good response from customers who weren’t playing there and have come back.
