Friday, Oct. 24, 1997 | 10:54 a.m.
CARSON CITY -- The Nevada Gaming Commission accepted a $200,000 fine Thursday from Las Vegas casino owner Michael Gaughan, who admitted regulations were violated at his two casinos.
The commission also approved plans by the Hard Rock hotel-casino in Las Vegas to buy out its partner, Harveys Casino Resorts, for $45 million. And it voted for a gaming license of Jeffrey Jacobs, son of Richard Jacobs, owner of the Cleveland Indians, now playing in the World Series.
The state Gaming Control Board on Aug. 8 filed a nine-count complaint against Gaughan, charging that there were violations in the sports books at the Barbary Coast and the Gold Coast involving the activities of Zacharie "Jack" Franzi, who set the odds on sports events from 1992 to 1995 at the two casinos.
Franzi, in violation of state regulations, was allowed to place bets at the books and he was given credit without proper casino approvals. The complaint said Franzi was permitted to make wagers "on terms more favorable to Franzi" than offered to casino patrons.
On the Hard Rock application, Harveys, whose major club is based at South Lake Tahoe, held 40 percent of the Las Vegas operation. But there were differences of opinion between Harveys, which managed the casino, and owner and founder Peter Morton, so they decided to go their separate ways.
The commission gave final approval for Jacobs to be a director for the Boardwalk Casino Inc., which operates the Holiday Inn Boardwalk hotel-casino on the Strip.
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