Las Vegas to appeal $3.9M verdict in Dotty’s lawsuit
A federal jury this week awarded more than $3.9 million to the slot machine chain Dotty’s in a trial over the Las Vegas City Council’s 2015 failure to issue a permanent tavern license to one of its locations.
Las Vegas spokesman David Riggleman said the city’s lawyers “absolutely” plan to appeal the verdict but declined to comment further.
In the lawsuit, Dotty’s alleged an equal protection rights violation against the location near Hualapai Way and Sahara Avenue.
The company alleged it was treated differently from other, similar taverns — which were granted permanent licenses over the same period — without any rational basis.
The City Council made several attempts to resolve the license application, holding discussions and requesting staff reports surrounding the question of whether Dotty’s — which serves food and drinks but makes most of its money through slot machines — was properly classified as a tavern operation.
Nevada law, with city codes, requires non-casino gaming revenue to be “incidental” to a bar, restaurant or convenience store’s operations.
In its complaint filed by lawyers with the firm Kemp, Jones & Coulthard, Dotty’s cited its first approved restricted gaming license 15 years prior and called itself a “successful tavern business.”
The west valley location opened in March 2015, with $700,000 invested in the structure and “equipment,” before competitors “launched an attack on Dotty’s business model and operation,” the lawsuit said.
Paula Graziano, president of Nevada Restaurant Services, which owns Dotty’s, thanked the jury in a statement. She also thanked Mayor Carolyn Goodman and others who tried to approve the license at the time.
Contact David Ferrara at dferrara@reviewjournal.com or 702-380-1039. Follow @randompoker on Twitter.