Nevada Regulators Deny Gaming License to Rio Hotel Executive Amid Ethics Concerns

Gaming License Denied to Rio Hotel Executive by Nevada Regulators

Recently, Nevada’s regulatory authorities declined to grant a gaming license to John Eder, a senior executive at Dreamscape Companies Inc., the owner of the Rio Hotel & Casino. Concerns were raised regarding Eder’s integrity and past professional conduct, placing his role in Nevada’s stringent gaming sector at risk. Eder holds key positions at Dreamscape as president and chief financial officer.

Commission Votes Against Eder Despite Initial Conditional Approval Suggestion

During the Nevada Gaming Commission meeting, Eder anticipated receiving his license after a prior recommendation from the Gaming Control Board to offer conditional approval. This conditional approval would have subjected him to a two-year monitoring period followed by a fitness review. However, the Commission voted narrowly, 3-2, to reject his application. The panel expressed reservations about his character and honesty, contributing to this rare denial.

This decision places Eder among a select group of 149 individuals and entities deemed unsuitable for licensing by Nevada regulators since 1980. State regulations prohibit any licensed gaming company from employing or associating with persons whose applications have been denied.

Eder’s attorney, Frank Schreck, confirmed that the Commission’s ruling is final and cannot be appealed. Both Schreck and Dreamscape are currently contemplating their subsequent actions. The hearing also reviewed licenses for other Dreamscape executives, with both Patrick Miller, the Rio’s president and CEO, and Christopher Balaban, the property’s financial officer, clearing the approval process without issues.

Rejection Rooted in Past Misconduct and Honesty Issues at Former Employer

Regulators scrutinized Eder’s history during his 20-year tenure at Seminole Gaming and its Hard Rock Hotel operations, where he was terminated three years ago. Eder admitted during testimony that he lost his position due to accepting an extravagant European trip from an insurance vendor he considered a friend. He also acknowledged having lied to supervisors about reimbursing the vendor for expenses including flights, train travel, and accommodations.

Eder expressed remorse for his actions, explaining the incident severely damaged his reputation, ended his career, and affected his livelihood. Despite his regret, the Commissioners deemed his misconduct significant enough to disqualify him from licensure.

Commissioner Abbi Silver, formerly of the Nevada Supreme Court, emphasized that applicants must demonstrate good moral character according to state law. She highlighted that Eder’s acceptance of gifts and dishonesty did not fulfill these stringent ethical requirements. Silver’s recommendation to deny the license received support from Commissioner George Markantonis and Chairwoman Jennifer Togliatti, forming the majority that confirmed the denial.

Dreamscape Companies has not released any statements regarding how this verdict might impact ongoing renovations and operations at the Rio Hotel & Casino under its management.