State Regulators Gear Up For Casino Bankruptcies

BRENDAN RILEY

CARSON CITY, Nev. (AP) — Nevada's casino regulators are forming a team of securities experts, auditors and staffers to handle possible bankruptcies and debt restructurings in the gambling industry.

State Gaming Control Board Chairman Dennis Neilander said in a letter to Nevada's industry licensees that the team's activity could disrupt some of the board's usual routine but is needed to help bring resorts out of bankruptcy.

"Unfortunately, Nevada gaming and tourism have not been spared consequences of the ongoing economic challenges facing the country," Neilander said.

"Already, there are a few large gaming companies in bankruptcy, along with a few smaller licensees," Neilander said. "More are anticipated."

Neilander said the board and its parent Nevada Gaming Commission may have to handle several cases "within a limited timeframe," and that's where the special GCB team will be most needed.

The team will include staffers from the board's seven divisions covering corporate securities, audits, taxes and licensing, technology, enforcement and investigations.