The recent change of ownership in Primm got me thinking: How does the transfer of ownership of a casino actually work? Is the transition something that happens overnight or is it a gradual process?
It’s not an open-and-shut case, according to Jennifer Morton of the Nevada Gaming Control Board. Much depends on what kind of handover it is. Is the company being purchased? Are only its assets being obtained (a frequent scenario nowadays)? Does the buyer already have a gaming license?
The Control Board has seven pages of procedures for a casino changeover, too lengthy to be summarized here. But here's an example. If a change of ownership requires a temporary closure, normal bankroll requirements (such as keeping enough cash on hand to satisfy jackpots) are waived. Outstanding sports wagers, for another example, become the obligation of the new owner. And so forth.
Records maintained per Nevada regulations must be retained for five years following the handoff. By contrast, an outright closure of a casino (rare, but it happens) requires only a one-year retention of those records.
“The ownership transition process is gradual and a final NGCB audit typically commences within 30 days of the ownership change,” adds Morton.
Tomorrow: A case study of a casino change of ownership, as detailed by a participant.
