Two top executives up for a gaming license offered insights in front of the Nevada Gaming Control Board into their Nevada operations, including a weakness in downtown Las Vegas and what it’s like to work with billionaire Tilman Fertitta.
Richard Liem, Fertitta Entertainment’s chief financial officer and vice president, and General Counsel and Executive Vice President Steven Scheinthal, are scheduled to appear before the Nevada Gaming Commission July 23 for their gaming licenses. The Nevada Gaming Control Board recommended their approval on Wednesday. The licensing is unrelated to Fertitta’s move to acquire Caesars.
When Caesars entered into an agreement to be acquired privately by Fertitta and his company in an all-cash transaction it included a “go-shop” period for Caesars through July 11 to consider other offers. There are no updated reports that anything has changed.
On Monday, Scheinthal said they will be filing with the Federal Trade Commission and Department of Justice a Hart-Scott-Rodino application, an anti-competition review of their properties and Caesars’s properties.
Tilman Fertitta has been on the sidelines of operating the company as he serves as ambassador to Italy and San Marino. For ethics reasons, he stepped down from his role as a director and president of Fertitta Entertainment. The company’s Board of Directors was then expanded to three to include Liem, Scheinthal, and Fertitta’s ex-wife Paige Fertitta. who was also named president.
Scheinthal started advising Fertitta as outside counsel in 1988 and has served as Fertitta’s primary legal strategist and closest business advisor since 1992. He oversees legal and corporate affairs for the company’s vast portfolio, including Landry’s, Golden Nugget casinos, and the Houston Rockets. Scheinthal has directed all mergers and acquisitions, including the acquisition of the Rockets in 2017.
Liem has been with the company since 1999 and manages the financial operations for Golden Nugget casino and the Landry’s restaurant chain. He also directs the long-term financial strategy.
Both Liem and Scheinthal were licensed in Nevada in 2005 when Fertitta Entertainment acquired the Golden Nugget. They were also licensed in 2023 with Fertitta’s acquisition of the Golden Nugget Lake Tahoe.
“This is a huge enterprise that in addition to the seven casinos has 10 non-gaming hotels and over 400 restaurants, four aquariums, and two amusement parks. These gentlemen oversee it with not a large staff or large management team, but they get it done,” said Sonia Vermeys, Fertitta’s Nevada-based legal counsel with Brownstein Hyatt Farber Schreck.
Vermeys said the duo are “extremely busy” with the Caesars transaction, especially in filing applications in jurisdictions where Caesars is licensed. Most of those applications were due at the end of last week.
Gaming Control Board Chair Mike Dreitzer asked Scheinthal how the Fertitta board operated with its namesake in Italy.
“Tilman is an owner along with Paige and all Tilman can do is set a strategy or provide some guidance,” Scheinthal said. “Since he resigned, he’s had no day-to-day involvement in any of the business or operations. Rick and I are in discussion daily about things happening with the business. The business tends to operate on its own, because our consumer-interfacing businesses have their own management teams. They open the doors every day. From a board perspective, only when we do major transactions, financing, an acquisition, and things that aren’t routine, we have a discussion with Paige. From time to time, we call Tilman and ask if this is something that he wants to consider. We typically bring ideas and either Tilman or Paige consider it and we go from there.”
Scheinthal said being a “lean, mean, flexible and profit-driven” organization comes from the top. “Mr. Fertitta says you don’t want an organization where your assistants have assistants.”
Dreitzer asked Scheinthal what it’s like to work with Fertitta for nearly 40 years on a personal level. “It’s like a husband who’ve been married for almost 38 years,” Scheinthal said, laughing.
“We’ll just leave that there,” Dreitzer said in response. “Understood in many ways.”
Liem said their relationship with the board of directors works well. He and Scheinthal, because they’ve been with the business for a long time, have “wide-open communication” with everyone. “This transaction (with Caesars) is out of the norm, but it’s been discussed and we think it’s a tremendous opportunity to put two really good businesses together and provide an environment which has some benefits in how you operate,” Liem said. “The board operates fine.”
Dreitzer asked Liem about the Golden Nugget in downtown Las Vegas and what’s happening in that environment.
“Downtown Las Vegas is a little challenging today,” Liem said. “Some international travel has declined with geopolitical tensions. A big promotion with Canadians here for the soccer tournament (by Circa Las Vegas) drove some traffic there. We’re the grand lady of downtown. We’re moving forward, but it’s not one of those great years. They come and they go. It gets soft, and it gets strong.”
Liem also talked about the Golden Nugget Lake Tahoe, saying the property will do well renovations are completed.
“It’s a great location. It’s right across from the event center that brings in talent. It has good views and good service. We’re still in the midst of renovating it. We have a number of floors to go in the Heavenly Tower, then we’ll be up and running.”
Liem was asked how he met Fertitta and got going with the Houston-based operator. He said he was working at a different company when Fertitta reached out after he lost his controller.
“I came down to visit and I first met Tilman as he was on his way to the helipad to go off to wherever he was going,” Liem said. “We spent about 10 minutes together. That was my first meeting. That’s the kind of guy he is.”
