Trying to Connect the Dotty’s In Vegas

The local tavern gaming chain Dotty’s (l.) was denied a permanent gaming license at a new facility, but instead received a four-month temporary license. City Council has debated about what changes, if any, need to be made to the tavern gaming industry.

Dotty’s entered a meeting with City Council hoping to receive a permanent license on a new property near Hualapai Way and Sahara Avenue. What it got instead, was a four-month temporary license extension, which will bide more time to Las Vegas officials as they figure out how to regulate the popular chain.

With over 100 locations throughout Nevada, many have argued Dotty’s is nothing more than a slot parlor posing as a tavern. However, others have hailed the operators as geniuses for taking advantage of what was formerly loose policy. Gaming revenue from taverns was always supposed to be supplemental to overall revenue, but Dotty’s has made it by far its biggest source.

In fact, the location in question has generated 91 percent of its revenue from video poker and slot machines. City Councilman Bob Beers, recently known for standing in the way of a soccer stadium being built in downtown Las Vegas, pointed that out to Dotty’s, when it claimed 67 percent of revenue was from gaming.

Beers has sent letters to the Gaming Control Board and Nevada Gaming Commission asking them to revisit discussions about the company’s business model. The temporary extension was approved in a 4-3 vote, with Beers being a naysayer.

City staff will continue to study the tavern gaming industry to better understand gaming and food and beverage revenue splits among taverns, including Dotty’s. Until that happens, there is no way of knowing exactly what the future holds for Dotty’s, who may find themselves having to adapt to a new business model.