Fifth Street Gaming, the operator behind Ojos Locos Sports Cantina Y Casino in North Las Vegas, is under intense scrutiny from Nevada gaming regulators due to recent tax and audit violations. These compliance issues have prompted the Nevada Gaming Commission to schedule further proceedings on November 20 to address the company’s adherence to regulatory standards.
The Nevada Gaming Control Board has proposed a plan to restrict Fifth Street Gaming’s share of sportsbook revenue for the next two years, particularly concerning its collaboration with Boomer’s Sportsbook. This measure aims to ensure compliance and accountability without impacting Boomer’s operations, which aspires to become the new sportsbook operator at the venue, pending approval.
The investigation traces back to a 2023 correspondence highlighting several financial discrepancies, raising alarm among regulators. Robert Wright, who oversees operations at Ojos Locos, explained at a recent hearing that many of the issues were tied to taxes on live entertainment events during significant renovations in late 2022 and early 2023. He assured that efforts have been made to enhance the casino’s auditing systems, including the closure of the nearby Silver Nugget facility to enable better oversight and the appointment of a new compliance officer to strengthen internal controls.
Nevertheless, Board Chairman Mike Dreitzer expressed dissatisfaction with the company’s progress. He noted that a recent audit uncovered further deficiencies in record-keeping, internal control protocols, and revenue reporting. Dreitzer questioned why persistent problems identified two years ago remain unresolved, suggesting a need for more rigorous intervention.
Despite implementing notable changes such as upgrading their slot management system and increasing the involvement of the company’s controller, Fifth Street Gaming still faces challenges. Monthly audits are now in place to ensure regulatory compliance; however, Dreitzer remarked that the 2025 regulatory review continued to reveal substantial gaps, indicating ongoing non-compliance.
Recognizing the steps taken to rectify issues, Dreitzer emphasized the necessity for an extended period to achieve full compliance with regulatory demands. He proposed a two-year timeframe for re-evaluation, acknowledging that while the company has made strides, its accounting systems require further stabilization.
Wright highlighted that the closure of the Silver Nugget allows management to focus more on financial governance rather than operational issues. He expressed the intention to eventually reopen the property after establishing a comprehensive long-term strategy. Fifth Street Gaming, also the owner of the Downtown Grand in Las Vegas, remains committed to enhancing its compliance frameworks to restore full confidence from Nevada’s regulatory bodies.
While Fifth Street Gaming is making efforts to correct past errors, the regulatory bodies remain vigilant, ensuring the company addresses all outstanding issues. The compliance journey is ongoing, with the need for constant improvements in governance and financial transparency.
On the other hand, some industry analysts argue that the regulatory environment may be overly stringent, suggesting that rapid growth and expansion phases naturally lead to transitional difficulties. They point out that the challenges faced by Fifth Street Gaming are not unique, as other operators have encountered similar hurdles when integrating new systems and facilities.
The broader economic context also plays a role, with fluctuations in the gaming industry requiring operators to adapt swiftly while maintaining compliance. The push for modernization and efficiency in casino operations often clashes with the rigorous demands of regulatory frameworks.
Nonetheless, the consensus remains that adherence to regulatory standards is paramount for long-term success and trust within the industry. As Fifth Street Gaming works to resolve its compliance issues, the outcome of the Nevada Gaming Commission’s upcoming review will be crucial in determining the company’s future trajectory in the competitive Las Vegas market.
In conclusion, while Fifth Street Gaming is actively addressing its compliance challenges, the path to full regulatory alignment is fraught with complexities. The company’s efforts to enhance its internal controls and financial oversight, coupled with ongoing scrutiny from Nevada regulators, underscore the importance of stringent compliance measures in the gaming industry. The upcoming decisions by the Nevada Gaming Commission will play a pivotal role in shaping the company’s operational strategies and reputation going forward.
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