Clark County Again Looks at Dotty’s Model

Clark County, Nevada lawmakers may do battle again with the operators of so-called slot taverns. According to regulations, the taverns must make most of their money from food and beverage sales, not slots. Some of the taverns have failed to conform.

It depends on what the definition of “incidental” is

Clark County, Nevada commissioners are once again wrestling with the rules that govern slot taverns such as those in the Dotty’s chain.

Last week, commissioners voted unanimously to impose a 90-day period of waiting on any new business licensing applications for taverns with Class A Slot Machine Licenses, the Las Vegas Sun reported.

It all comes down to the definition of “primary” and “incidental” sources of revenue as laid out in the 2011 regulations on such businesses. Back then, commissioners revised the rules in an attempt to check the growth of slot parlors, which the casino industry has complained are not taverns at all, but pure slot parlors that make most of their money on gambling.

The rules require the taverns to have kitchens and a prescribed amount of dining space. Concerns remain that large operators like Dotty’s and other taverns are still defying the intent of the law. According to that intent, gambling should be a incidental source of revenue, with primary revenues coming from serving food and drink.

According to the Sun, some of the taverns, while following the letter of the law, still derive up to 80 percent of their income through gaming.

“We don’t have a problem if you have 15 slot machines because the bar is doing an enormous amount of business. It’s like a pool table. It’s an amenity,” said Commissioner Steve Sisolak. “If it’s your main business, that’s where the problem comes up.”

One solution to the problem could be reducing the number of allowable machines from the current maximum of 15, Sisolak said.

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