Tavern liquor licensing halted

The Clark County Liquor and Gaming Licensing Board Tuesday narrowly approved a 70-day moratorium on the issuance of any new liquor licenses for taverns countywide.

The moratorium, which was approved by a 4-3 vote, has been seen as a way to curb the growth of Dotty's Gaming & Spirits and similar businesses that have been expanding throughout the Las Vegas Valley.

"It's in some people's best interest to delay this," said Clark County Commissioner Steve Sisolak, who authored the moratorium. "We have been forced to take this action. Hopefully, the industry can reach some common ground and present us with an idea or ordinance."

Sisolak's measure would allow applications already submitted to the county as of 5 p.m. Tuesday to continue, along with those tavern-related applications being considered by the county's zoning and other departments.

If no agreement is reached, Sisolak said he would introduce his own measure early next year. The issue was placed on the agenda after a Dec. 16 meeting hosted by Sisolak and Commissioner Chris Giunchigliani to receive industry input on a proposed moratorium.

Sisolak said Tuesday he was even more concerned about the issue following last week's meeting. He said he strongly disagreed with the claims made that Dotty's had created new customers.

"I think we need to protect Dotty's business," he said. "But we also need to protect the gaming industry and the tens of thousands of employees. Dotty's isn't hurting Aria, but it does have an effect on Palace Station and Gold Coast."

He also doubted testimony that every Dotty's outlet represented a $1 million investment.

"A moratorium is not needed when all parties are willing to talk," Chris Kaempfer, a partner with the Las Vegas law firm Kaempfer Crowell, who represents Dotty's, told county commissioners.

He also warned commissioners on the "long-term effects" a moratorium could have on an economic recovery in Clark County.

"Let's be candid, this moratorium is aimed at Dotty's-type operations," said Kaempfer, who added that Dotty's opened four taverns in Clark County last year and plans to open three in 2011.

He said the moratorium would have no effect on curbing Dotty's expansion next year, because two of the new taverns "were already in the system."

Dotty's, which was founded in 1995, employs 500 people and operates 68 locations statewide, including 40 throughout Clark County. The company's pubs, which also don't offer full kitchens, have been able to avoid a voter-approved ban on tobacco use in taverns and restaurants where food is served.

Sisolak and other commissioners contend that Dotty's is nothing more than a slot machine parlor, offering minimal food and alcohol while focusing on gaming.

On Tuesday, County Commission Chairman Rory Reid, Vice Chairwoman Susan Brager and Commissioner Larry Brown joined Sisolak in voting for the moratorium. Those opposing the temporary ban included Giunchigliani, Commissioner Tom Collins and Commissioner and Liquor and Gaming Licensing Board Chairman Lawrence Weekly.

"It is a slot parlor or slot palace," Brown said. "Maybe we do need a new category for taverns. We are not going after Dotty's to punish them. We have to be able to ask, what is good public policy?"

Giunchigliani said she wasn't sure a moratorium was necessary and that more time was needed to study whom was being harmed before making any recommendations.

"We shouldn't be legislating competition," she said. "Too many people have invested in these businesses and in some of these shopping centers taverns are the only businesses left."

Sisolak stressed that if representatives from Dotty's, the Nevada Tavern Owners Association and other interested parties could reach an agreement before the deadline, the moratorium could be lifted.

Dotty's locations have restricted gaming licenses and just 15 slot machines each, pay a flat fee per machine but are not taxed on gaming revenues. Major casino companies and other nonrestricted gaming license holders pay a tax on gross gaming revenues and a fee per slot machine.

Contact reporter Chris Sieroty at
csieroty@reviewjournal.com or 702-477-3893.