Concerns over Fifth Street Gaming’s Compliance in Nevada
Nevada Gaming Regulators Examine Fifth Street Gaming’s Compliance Issues
Nevada’s gaming authorities are scrutinizing Fifth Street Gaming following the discovery of tax and audit irregularities at its North Las Vegas casino, Ojos Locos Sports Cantina Y Casino. This issue is set to be discussed further during the Nevada Gaming Commission meeting scheduled for November 20.
Proposed Restrictions on Sportsbook Revenue
During the upcoming session, the Nevada Gaming Commission is expected to review a recommendation from the Nevada Gaming Control Board to impose a two-year limit on Fifth Street Gaming’s share of sportsbook revenue in partnership with Boomer’s Sportsbook. This restriction would target Fifth Street’s earnings without affecting Boomer’s, which is aiming to become the new sportsbook operator at the property upon approval.
Background of the Investigation and Regulatory Concerns
The current investigation stems from financial concerns initially raised in a 2023 letter. Robert Wright, the operator of Ojos Locos, explained during a recent hearing that many of the earlier compliance issues were related to taxes on live entertainment during major renovations carried out in late 2022 and early 2023. He assured that the casino has since enhanced its auditing processes, closed the nearby Silver Nugget establishment to improve oversight, and appointed a new financial controller to reinforce internal controls.
However, Nevada Gaming Control Board Chairman Mike Dreitzer expressed dissatisfaction with Fifth Street Gaming’s handling of compliance matters. He highlighted findings from a recent audit revealing continuing problems with recordkeeping, internal controls, and revenue accountability, questioning why issues first flagged two years ago remain unresolved.
Fifth Street Gaming’s Efforts and Ongoing Challenges
Wright noted significant improvements including the introduction of a new slot management system and increased involvement of the company’s controller. They now conduct monthly financial reviews to ensure regulatory compliance. Despite these steps, Dreitzer pointed out that a 2025 regulatory letter still identified numerous shortcomings, indicating ongoing non-compliance.
Timeframe for Compliance and Future Plans
Dreitzer recommended granting Fifth Street Gaming a two-year period to fully restore compliance, allowing for a follow-up evaluation. Although progress has been made, continuous efforts are needed to stabilize the casino’s accounting practices.
Wright also mentioned that after closing the Silver Nugget, management can concentrate more effectively on financial monitoring. Plans are in place to eventually reopen the property following the development of a comprehensive long-term strategy. Fifth Street Gaming, which also owns Downtown Grand in Las Vegas, remains committed to enhancing its compliance measures as it seeks to regain full confidence from Nevada’s regulatory bodies.
