Las Vegas Sun

March 29, 2024

Binion’s fined $50,000 in bookmaking violation

CARSON CITY -- The Nevada Gaming Commission has accepted a $50,000 fine from Binion's Horseshoe Club hotel-casino for failing to cooperate in an investigation of illegal bookmaking.

The Horseshoe also agreed Thursday to turn over a disputed $54,961 that had been on deposit at the casino's race and sports book.

A complaint was filed April 3 by the State Gaming Control Board against the Horseshoe, accusing the downtown Las Vegas casino of violating regulations. The board and the resort then reached a stipulation that was approved by the commission.

In October 1993, Zach Franzi opened a telephone wagering account at the race and sports book. Rules prohibit anybody else from making wagers over the telephone or withdrawing from the account.

The board said Jack Franzi, the father of Zach, made telephone bets and withdrew funds from the gaming account.

On Aug. 9, 1995, state agents seized money, property and records from the home of the father in connection with a probe by the New York State Organized Crime Task Force investigating an international illegal bookmaking ring called the "Kosher Boys."

The agency discovered the father, a Barbary Coast hotel-casino oddsmaker, may have had other accounts and deposit boxes in Las Vegas casinos. A board agent called the Horseshoe and told an employee to freeze the telephone wagering account, which contained $54,961.

But the casino, with the authorization of co-owner Jack Binion, allowed the father to come in and withdraw the money from his son's account. When the gaming board agent arrived later, she was told Franzi did not have a deposit box. But later casino officials admitted that Franzi did have an account and the father had taken the money.

Of the $54,961 withdrawn, the board said about $20,000 consisted of a deposit of gaming chips belonging to one of the individuals who has since been indicted in New York on illegal gambling charges.

Also Thursday, the commission accepted a stipulation for the Flamingo Hilton in Las Vegas to pay a fine of $45,000 and the Reno Hilton to pay a penalty of $25,000 for violating money laundering regulations in the handling and recording of cash.

The stipulation said there were no instances of money laundering.

The Eldorado hotel-casino in Reno also agreed to pay a $10,000 fine for violating financial transaction regulations.

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