LV casino owner agrees to $136,307 fine

CARSON CITY -- Herb Pastor, owner of two downtown Las Vegas casinos, has admitted his employees improperly hustled tips from slot machine players and he has agreed to pay a $136,307 penalty to the state.

Pastor and the state Gaming Control Board filed a settlement agreement Monday to the 15-count complaint which initially sought up to $1.5 million in fines. While conceding his change girls at Sassy Sally's and the Coin Castle Casino solicited tips, Pastor said the violations were unintentional.

Under the stipulation, Pastor will pay $16,307, which represents the cost of the state's investigation, to the state Gaming Commission on Aug. 19. And starting in October, he must make 12 monthly payments of $10,000.

In addition, Pastor must hire an independent security firm to conduct regular undercover investigations to see if employees continue tip or jackpot hustling. The weekly reports of the security firm must be sent directly to the control board. The undercover operations must be carried on for at least one year.

In signing the settlement, Pastor declined to fight the charges or seek a hearing before the state Gaming Commission. The stipulation will come up for final approval before the commission at its September meeting in Las Vegas.

If Pastor is late in making any of the payments, that will be considered "an unsuitable method of operation," and could result in an additional complaint being filed.

Pastor and the board said the settlement was made "to avoid litigation and economize resources."

Last month, in answer to the board's May complaint, Pastor said he took quick action when informed of the problem by firing 67 workers, some who have been with him 15-20 years.

There were complaints dating back to the 1980s about the behavior of the change girls which the control board called "dishonest and offensive practices ..."

Workers told players they knew which machines were the "hottest" and they expected a gratuity. For instance, one customer told board agents an employee demanded $3 from a $25 jackpot and later sought an $8 tip when the player won a $60 jackpot.

In 1991, the board issued a show cause order against Pastor, charging there have been 22 customer complaints over a seven-year period at his casinos. He said he took care of the problem and the number of complaints decreased.

When licensing matters came before the board in 1996 and 1998, Pastor said board members told him that the complaints were diminishing. But the board's complaint doesn't square with Pastor's statement.

The board said when James Gish appeared to be licensed as a key employee at the two clubs in July 1996, there were 43 documented patron complaints about tip solicitation. Two years later, there were 11 additional complaints about hustling tips, guaranteeing jackpots and demanding a percentage of the payouts.

Earlier this year, undercover state agents visited the two casinos and discovered four change girls hustling tips from jackpot winners and seven others suggesting the players "remember them" when the jackpots were hit. Two of the change girls told one agent he should be "good" to them if he won.

Other employees told an agent to play certain slot machines because they were going to "hit" and "hit big." The board said this was misrepresentation because the workers never knew which of the machines would pay out money.

Pastor said he never knew the practice had resumed. He said immediately terminated about a dozen employees and as of mid-June, had fired 67 workers. That represented a nearly 98 percent turnover in personnel.

He is holding weekly meetings with all employees to remind them of the rules and he said he substantially raised the pay of the change girls to reduce the temptation to hustle tips.

Pastor also said he never personally profited from the practice.

The agreement was signed by Pastor, the three members of the control board, its legal counsel Deputy Attorney General Keith Kizer and attorney James Jimmerson, who represented Pastor.

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