Brief: Casino purchase by Jackson would draw regulatory scrutiny

Jackson and his partner, Indiana riverboat operator Don Barden, have scheduled a meeting with Starwood Hotels & Resorts officials to discuss buying the Desert Inn, the elegant but under-performing 715-room Strip resort.

"We'll decline to comment other than to reiterate that the property is for sale and we have several interested parties," Starwood spokesman Jim Gallagher said today.

But sources said Jackson and Barden plan to make an offer to Starwood Chairman Barry Sternlicht by Thanksgiving.

If the duo decided to buy or build a gaming resort in Las Vegas, they would have to be licensed and it is likely the Nevada Gaming Control Board and Gaming Commission would take a hard look at the well-publicized allegations of sexual misconduct against Jackson in the early 1990s.

Sternlicht has said Starwood wants $325 million to $375 million for the DI, which has failed to generate positive cash flow despite a $200 million renovation.

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