Executives of two Las Vegas casinos told the Nevada Gaming Commission Thursday that their properties are doing well as the gaming industry rebounds from the pandemic, even as one agreed to pay a $60,000 fine for violating COVID protocols.
Ray Pineault, new CEO of Mohegan Gaming and Entertainment, and Alex Meruelo, owner of the Sahara Las Vegas, appeared in person before the Commission to answer questions about their respective items on the agenda.
The commission signed off on the Mohegan Sun Casino at Virgin Hotels Las Vegas paying a $60,000 fine as part of a settlement for violating the state’s COVID-19 protocols when it opened March 25.
The Commission also certified the suitability of Pineault as a key executive and manager. The Connecticut-based Mohegan Sun operates the rebranded Mohegan Sun Casino at Virgin Las Vegas that opened at the former Hard Rock Las Vegas.
In addition, the Commission approved an application in which Meruelo, whose Meruelo Group owns both the Sahara and Grand Sierra Resort in Reno, pledged a membership interest in the Grand Sierra Resort to Bank of America as part of a loan package closed in December.
In terms of COVID-19 violations, the complaint handled by the Nevada Attorney General’s office was based on a failure to enforce social distancing and mask wearing; it cited widely disseminated photos of celebrities and patrons showing multiple violations of health and safety protocols in place at the time. The $60,000 fine is the largest imposed on a single licensee, but still below the $75,000 fine last fall for combined protocol violations at the Sahara and Grand Sierra Resort.
John Michela, Nevada senior deputy attorney general, said the Mohegan Sun required employees and most patrons to wear masks, but there was a lapse in its enforcement of paid celebrity promoters. Those photos were posted on social media before later being removed.
Mohegan Sun attorney Marc Rubinstein said they originally argued for a reduced fine based on precedent — specifically, multiple violations over multiple properties over multiple days at the Sahara and Grand Sierra — while the Mohegan’s violations occurred in one night.
“This is a long way away from some of the complaints we saw during this horrible time of COVID,” said Commission Chairman John T. Moran, Jr. “There was outright defiance out there and continual violations. You guys ponied up and everything went well.”
As for Virgin’s opening three months, Pineault said they’re happy with the results so far and that the property has settled in since COVID restrictions were lifted and casinos returned to 100 percent capacity.
“We’ve steadily seen the business grow over the last 60 days and we fully anticipate it’s going to continue in that direction with hotel occupancy growing,” Pineault said. “We’re pleased with the direction it’s heading and are confident long term that it will return to full normal operations.”
Moran told Pineault he’s looking forward to the operation of the property, the first by a Native American tribe in Las Vegas. He said Las Vegas should be proud it had the ability to have grand reopenings during the pandemic.
“I think it’s pretty amazing that with COVID, we have the gamers still out there alive and well,” Moran said. “Places like you opened in the midst of it, which is an incredible hurdle. You’re talking about Genting Group (opening Resorts World Las Vegas today) and Circa Las Vegas (opening downtown last fall). Only in Nevada gaming do things like that happen. And I’m excited about the tribal gaming authority getting involved here in Nevada.”
The Meruelo Group obtained its Strip property in 2018 and changed the name from the SLS Las Vegas back to the Rat Pack-era Sahara in 2019. The property is undergoing $150 million in improvements, including a new pool complex and restaurants that will open this year.
“We’ve turned it around,” said Meruelo, also the owner of the Arizona Coyotes of the NHL. “It was losing $100 million when it first opened up. We had the best quarter ever this quarter we’re currently in. We’re doing extremely well and that’s considering we don’t have a pool. We don’t have Magic Mike. We don’t have restaurants opened up. We don’t have much to offer (now), but we do a hell of a job taking care of our customers.”
Moran told Meruelo he frequented the Sahara pool as a child and once met Elvis Presley there. He said he’s glad the property is doing better on the north end of the Strip, which he described as a tough sell for many years.
“Maybe with Genting (opening Resorts World), you will now get some of that with your location as well and help you out there,” Moran said. “With Phil Ruffin at Circus Circus and talk about the property across the street from you, it looks like you can have a breakout.”
