Ruling coming soon in Fremont mobile-bars lawsuit

Steve Burnstine's unhappiness about mobile bars dispensing booze near his two casinos has escalated into a full assault on how the Fremont Street Experience is governed.

In a case filed two years ago, Burnstine, the CEO of Granite Gaming Group, claimed damages due to lost sales at his Mermaids and La Bayou properties, currently estimated at $850,000. But the potentially broader implications arise from his contention that the Experience, which allowed the mobile bars to operate, should be more like a public agency than a private mall.

At a Friday hearing, Clark County District Court Judge Nancy Allf said she was inclined to decide at least parts of the case in favor of the Experience, but did not want to give an oral ruling because of some of the "important" issues involved. She promised a written opinion within two weeks, which could set the stage for a full trial in August.

In making the case that the Experience should be left as it is, attorney Patrick Reilly said, "I want to ask your honor one question: Do you want to manage the mall? That's where this (Burnstine's case) is going."

The Experience came into existence in 1993 after state legislation and city approval. The funding came from the two governments, along with 10 casino hotels as shareholders. The members pay varying dues totaling tens of thousands of dollars a month to operate the light show on the canopy and to stage concerts and promotions such as the New Year's Eve celebration.

Burnstine, who bought the properties from his father six years ago, never joined.

"Mr. Burnstine wants special treatment and that what this lawsuit is all about," Reilly said. The Experience's marketing brings him customers even though he does not contribute to the budget, Reilly said.

He contended that governmental actions established the Experience as a mall, not a public agency.

But because that part of Fremont Street once had cars on it, Burnstine's legal team argued, issues facing the business should be reviewed in something akin to the city's planning process, with public notices and hearings. Leaving the decisions to the Experience management creates a situation where they "are going to favor (their) members," said Burnstine attorney Mario Lovato. "That's not a policy and has led to unfair treatment."

As a non member, Lovato said, Burnstine is not invited to Experience board meetings so has no voice in decisions.

"What are the rules? What are the policies if nothing is ever put in writing?" he said.

The Experience board decided a decade ago to allow mobile bars on the main thoroughfare. That led the Las Vegas Club in 2002 to plant one just steps from the front door of Mermaids. It trundled elsewhere in 2009.

Such a concession should be put out to public bid, Lovato said.

On the other side of the street, Burnstine contended, the Golden Gate Hotel siphoned business away from his La Bayou by parking a mobile bar nearby. This bar was moved in mid-2010 and the Golden Gate opened permanent bars on its front doorstep that September.

"It's interesting to me that these bars are allowed in front of non members (of the Experience) and not in front of members like the Golden Nugget," Burnstine said.

But Reilly said that locations were chosen solely because they were close to electric outlets.

"We couldn't be running cords all over the place," he said.

Contact reporter Tim O'Reiley at toreiley@reviewjournal.com or 702-387-5290.