State gaming regulators today granted final approval to Marnell Gaming LLC’s acquisition of the Nugget casino in Sparks.
The Nevada Gaming Commission signed off on the company’s purchase of the Northern Nevada property for an undisclosed price, unanimously agreeing with a decision from the Gaming Control Board two weeks ago. The deal is expected to close next month.
Approval of the sale comes after federal officials earlier this month announced a $1 million civil penalty against the entity that had previously sold the casino in 2013. The Financial Crimes Enforcement Network said it fined Sparks Nugget Inc., which owned the casino under the stewardship of the Ascuaga family, for “egregiously and willfully” violating anti-money laundering requirements.
As he did when he spoke to the control board, Marnell Gaming CEO Anthony Marnell III today sought to assure the commission that those type of problems would not happen on his watch. Marnell said he takes the issue seriously and was confident in measures enacted by the owners selling the casino to him, who were not the subject of the FinCEN fine.
“I feel that the current owners that are selling the property to us did a very good job of getting control of a very bad situation,” Marnell said. “I am currently comfortable with what we are walking into.”
Marnell said the current ownership had done a good job instilling a compliant culture, and his company had engaged with a former gaming control board chairman to help ensure anti-money laundering compliance moving forward.
The commission today seemed comfortable with Marnell’s approach to anti-money laundering efforts. However, commissioners did bring up serious concerns about investor Anthony Magliarditi, whom they said never produced information regulators requested of him as part of Marnell Gaming’s application.
Marnell and his legal team said they did not know why Magliarditi did not comply with the requests. Marnell said he hasn’t spoken to Magliarditi since 2011.
The commission expressed widespread frustration with Magliarditi. Commissioner Randolph Townsend said the failure to comply was “an insult” to regulators and the public, and Commissioner Philip Pro called the situation “very troubling.”
In the end, commissioners voted to put a restriction on Marnell Gaming’s license that any revenue Magliarditi may be entitled to receive from the Nugget will be placed in escrow and cannot be released without approval from the chairman of the control board.
Magliarditi was not present at the commission meeting, which was conducted in Carson City and streamed live via video in Las Vegas. Attempts to contact him for comment were unsuccessful.
As he takes over the Nugget, Marnell said he was planning some substantial improvements, with the top priority being technological upgrades to the casino’s player tracking and database systems. His company also plans to renovate the Nugget’s west hotel tower and upgrade its convention center.
“My intention is to try to bring it back and try to restore it to that iconic status that it once was,” Marnell said.
Gaming Commission Chairman Tony Alamo today agreed the Nugget was in need of some new investment, referring to it as a “tired property.”
While the Nugget is Marnell Gaming’s first casino in Northern Nevada, the company already has two in Southern Nevada: the Colorado Belle and Edgewater in Laughlin.
Marnell used to be president of Henderson’s M Resort, which he opened in 2009, but he left that role last year as the resort’s operator, Penn National Gaming Inc., bought the Tropicana and named a new executive to oversee both properties.