Judge approves Horseshoe license for Silver Bullet casino

The new Silver Bullet casino to be located in north Carson City won’t have to build a hotel with at least 100 rooms in order to operate a full casino in Carson City.

District Judge James Wilson this week upheld the Carson City Board of Supervisors’ decision allowing the now-defunct Horseshoe Club’s unrestricted gaming license to be moved to the new casino.

Carson City ordinance

requires new casinos have at least 100 rooms in order to operate an unrestricted gaming casino in the capital.

The Horseshoe, which had operated since the 1970s, was grandfathered in and didn’t have to have the rooms.

But the Horseshoe shut down in 2014.

So after the Board of Supervisors approved transferring the license, the Carson Nugget, Gold Dust West and Casino Fandango — which all have more than 100 rooms — sued to overturn the board decision and block the transfer of the Horseshoe’s license.

They argued it was illegal under city ordinance because the Horseshoe hadn’t paid its quarterly gaming fees for 22 months and had filed papers to dissolve its operations.

They argued therefore the unrestricted gaming license was void and the Board of Supervisors decision to allow the transfer was arbitrary, capricious and an abuse of discretion. They argued that allowing the transfer gave the Silver Bullet an unfair economic advantage because the new casino didn’t have to build at least a 100-room hotel or motel.

Wilson ruled that Carson supervisors control gaming within the capital and have the authority to grant, deny or revoke a gaming license and, therefore, to transfer a license from one entity to another.

He ruled even though the Horseshoe as a business was dissolved, nothing in state law prohibits the Horseshoe from transferring its gaming license by conveying it to the Silver Bullet.

Wilson also pointed out the license wasn’t transferred until the state Gaming Commission approved Silver Bullet’s state gaming license. He ruled the Board of Supervisors had the authority to OK the transfer on the condition the Horseshoe Club’s back quarterly license fees were paid.

Therefore, he ruled, the evidence supports the conclusion the license was in good standing when it was transferred and the supervisors decision wasn’t an abuse of discretion.

“Substantial evidence supports the board’s grant of Horseshoe Club’s grandfathered gaming license to Silver Bullet,” Wilson concluded.