Mirage's Boardwalk buy OKd - but investigation planned

Approval Tuesday of Mirage Resorts' takeover of the hotel on the Las Vegas Strip, which gives the company a potential site for another megaresort, had been expected to be routine until state Gaming Control Board Chairman Bill Bible announced his undercover agents were blocked Saturday when trying to make $1,000 quinella bets on horse races.

Agents were permitted by Boardwalk race book operators to make just $2 quinella bets, he said.

Control board member Steve DuCharme said Boardwalk race book records show three $500 bets and six $1,000 bets were made within a 57-second period by others on the same races.

At a June 3 hearing, Boardwalk President Forrest Woodward told the board that any player could make the $1,000 special wagers. He said the quinella bets are a loss leader used to attract more wagering on parimutuel horse races.

Bible said the quinella bets tend to have favorable odds that allow many players to win. A quinella is a form of wagering in which a bettor must pick the first two finishers, regardless of the order.

When questioned Tuesday about why state agents were prevented from making the large bets, Woodward had no answer.

Bible wanted Mirage Resorts to suspend the quinella wagering until his agents complete their investigation. But he didn't get that commitment from Dan Lee, chief financial officer of the company.

Lee said a large percentage of Boardwalk profits come from race book betting.

"I'm hesitant to suspend (the quinella wagering)," Lee said. "Thirty percent to 40 percent of Boardwalk earnings come from the race book. They seem to have a regular customer base."

Commission Chairman Bill Curran said he did not want to see the acquisition delayed because of potential problems by the seller's side.

Mirage Resorts is paying $105 million for the stock of the 653-room hotel and 33,00-square-foot casino. The resort will continue as a Holiday Inn franchise and Woodward will remain as its president.

With acquisition of the Boardwalk and the $39 million buyout of nearby commercial properties, Mirage Resorts will have 817 feet of Strip frontage between the Monte Carlo and the new Bellagio. Mirage is building the $1.3 billion Bellagio and is 50 percent owner of Monte Carlo. The acquisition will give the company Strip access to its 30-acre parcel that formerly was the Dunes golf course.

Before the approval vote, Lee pledged to work with the control board in an ongoing investigation of the race book betting.

He added that the failure of race book employees to follow company instructions on betting is a "fireable offense."

Mirage Resorts agreed to take over management of the race book and pledged to stop any discrimination in the amount of bets taken. If quinella betting is suspended for one player, it will be suspended for all players.

Mirage Resorts also agreed to work with agents in determining why their large bets were not accepted Saturday.

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