The Nevada Gaming Control Board recommended that the Gaming Commission license Paige Fertitta as the new director and president of Fertitta Entertainment. Her former husband, Tilman Fertitta, is required to step aside in order to become U.S. Ambassador to Italy and San Marino. The matter now goes before the Nevada Gaming Commission on May 22. The commission will consider Paige Fertitta’s license following Tilman’s resignation as company CEO in late April, following his presumed confirmation by the Senate.
Commission member George Assad used the opportunity to question Paige Fertitta and the company’s legal counsel about Tilman Fertitta becoming the largest shareholder of Wynn Resorts at 13 million shares. He has yet to file an SEC 13D form that would allow him to have greater influence on the company, instead of being a silent shareholder. News reports have said he was unhappy with the company’s stock price.
Fertitta Entertainment operates three casinos in Nevada: the Golden Nugget in downtown Las Vegas, Golden Nugget Laughlin, and the Golden Nugget in Lake Tahoe that it recently acquired. Those casinos have 2,300 full-time employees. The company also owns several restaurants with 500 full-time employees in Nevada.
Paige Fertitta joked with the Board that at age 66, she’s now in her “golden years” and should be retiring. She said she won’t have any involvement in day-to-day operations in Nevada. Her role will to be available for board meetings and questions. She’ll visit the properties and rely on their operators.
“It’s pretty much status quo for the businesses,” Fertitta said. “They do an incredible job. While Tilman may be otherwise occupied, I’ll refer to him on anything I’m concerned or not sure about.”
Steven Scheinthal, executive vice president and general counsel at Fertitta Entertainment, said he’s been with the company for more than 30 years and has been licensed in Nevada for more than 20 years. He and CFO Richard Liem have an office next to Tilman Fertitta; with his not being there, the property heads will make decisions. When it comes to capital expenditures, a list will be created and Paige Fertitta will be consulted.
“We’ll be talking to Tilman,” Scheinthal said. “His day ends at 6 p.m., which is 10 a.m. our time. He’s available for discussion. Even though Tilman is ambassador, he’s still the equity owner, along with Paige. He’ll still have some say in the direction and expenditures of the business.”
Responding to a question from Assad about Tilman Fertitta’s shares in Wynn Resorts, Scheinthal said both Fertittas are SEC G-filers, passive investors. “So as long as we believe that management is engaged in the right steps to provide value to the shareholders, I think we’re OK with that. We’ll see what happens.”
In response to a question from Assad on whether Fertitta was happy with the performance of Wynn’s executives, Scheinthal wouldn’t take the bait, repeating his role of passive investor.
Paige Fertitta said she goes to Houston Rockets games, which Fertitta Entertainment owns, but she’s not involved with the team. That falls to her son Patrick.
Scheinthal said there will be a new reality television show about the Golden Nugget in the next six months.
