Thursday, August 25, 2011

More Companies And People Put Out Of Business By Government

Dotty's is a chain of small gambling halls that cater to mostly women. I've never been in a Dotty's but supposedly, it has stand alone slot machines and a small bar area where they serve chips and a little bit of liquor and beer. Today, the government just put Dotty's out of business and several hundred people out of a job.
From the LVRJ: The debate over Nevada's rules for slot machines in taverns nearly turned into a bar fight Thursday.
Following a seven-hour hearing, the Nevada Gaming Commission voted 4-1 in favor of several amendments to Regulation 3.015, adding a new definition of a tavern. The revisions effectively eliminate the business model for Dotty's Gaming & Spirits, which has been accused of skirting state law by offering mostly slot machine play without the usual trappings of a tavern.
Only Gaming Commission Chairman Pete Bernhard voted against the changes, saying the revisions "do not encourage economic growth, they discourage economic growth."
Bernhard said there's no need to change the long-standing regulation, and any concerns about a restricted license applicant such as Dotty's could already be handled on a case-by-case basis.
"The proposed regulations will have an adverse impact on business of various sizes and an adverse impact on small communities," Bernhard said.
Despite Bernhard's impassioned defense, four commissioners favored a proposal by panelist Tony Alamo Jr. that took into account suggestions from the Nevada Resort Association, the Nevada Tavern Operators Association and the Gaming Control Board.
The resort association, spurred into action by Station Casinos, thought the proliferation of Dotty's throughout Las Vegas was taking away customers from the locals gaming market.
http://www.lvrj.com/business/dotty-s-attorney-alleges-unequal-enforcement-128407098.html
There are about 60 Dotty's in the State of Nevada and presumably, these will close down. Not only will these businesses shut down, it will also open up 60 store fronts that probably will not be filled any time soon, so this will hurt the landlords and possibly, tax revenue for the local governments.
So, I guess the NGC wants more taverns, which includes more drinking which will increase drunk driving. Yep, that's a smart idea.
And I've defended Station Casino's in the past with their problem with the union thugs, but Station Casinos are completely wrong on this issue.
Look for a long and drawn out court fight, either in State or Federal courts and going to the Supreme Court of Nevada or to the 9th Circuit Appeals Court and it's going to cost taxpayers a lot of money to defend the NGC.

1 comment:

  1. They're not going to close. They have a year to put in a bar that holds 9 people, at each location. They will, and they'll survive.

    Dotty's was claiming they were "primarily" a tavern, when in fact they are a mini casino. This is a case of the government being correct.

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