Tension remains for Hard Rock and gambling regulators

 

December 2

Last month, if you thought that the Hard Rock Hotel advertising controversy was over when they signed a settlement agreement with regulators you were sorely mistaken.

Wednesday, at the State Gaming Control Board meeting, Peter Morton, who owns Hard Rock, was interrogated for approximately 45 minutes in regards to Hard Rock's troubled relationship with state regulators. The meeting was thought to be held for a simple stock transfer matter for the owner. Morton and his attorney, Jeffery Silver were caught largely off guard by the questioning.

The action at hand was one of many stock transfer issues to be handled by the board Wednesday. Morton and his attorney mentioned before the board's consideration that they were under the impression that the board would consider it a simple transfer.

After the intense questioning, the board unanimously permitted the transfer of some 1,365 shares of privately held stock from a voting classification to a non-voting classification, enabling the shares to go into a trust for Morton's children.

It is speculated that most of the uneasiness between the two parties involved stems from regulators belief that Morton has fallen short with his insight and management skills. Hard Rock has been sited with two major violations in the last three years.

The latest violation was just settled in November by the Nevada Gaming Commission. The violation involved the Hard Rock's failure to live up to pledges that it would monitor advertising through a compliance committee. The resort's promise was called into question when launched an overtly sexual ad campaign.