Nevada Regulators Deny Rio Executive’s Gaming License Due to Ethics Issues

Last week, Nevada regulators turned down a gaming license for a top executive from Dreamscape Companies Inc., which owns the Rio Hotel & Casino. They raised questions about his honesty and past work behavior. This decision throws John Eder’s future into doubt in Nevada‘s strict gaming world. Eder serves as Dreamscape’s president and chief financial officer.

Split Vote Ends Eder’s Hopes for Gaming License

Eder walked into Thursday’s Nevada Gaming Commission meeting thinking he would get his license. The state’s Gaming Control Board had earlier suggested giving conditional approval. This earlier suggestion would have let Eder work under a two-year review before another fitness check. However, the Commission voted 3-2 to turn down the application. They had doubts about his character and truthfulness, reported The Las Vegas Review-Journal.

The rejection puts Eder on a small list of 149 people and groups Nevada regulators have found unfit for licensing since 1980. State law says licensed gaming companies cannot hire or team up with anyone whose application was rejected.

Eder’s lawyer, Frank Schreck, said in an email that he and his client cannot appeal the Commission’s ruling. Schreck also mentioned that Dreamscape and Eder are figuring out what to do next.

The hearing looked at three Dreamscape executives, but Eder faced pushback. The Commission gave a thumbs-up to Patrick Miller, the Rio’s president and CEO, and Christopher Balaban, the property’s financial chief, for their licenses without any fuss.

Nevada Regulators Reject Eder Over Past Misconduct and Lack of Candor at Former Job

Regulators looked into Eder’s previous job at Seminole Gaming and its Hard Rock Hotel operations, where he worked for 20 years before they fired him three years ago. In his testimony, Eder admitted that he lost his job for taking a fancy European trip from an insurance vendor he saw as a friend. He also said he lied to his bosses about paying back the costs, which covered flights, train tickets, and hotel stays.

Eder told the commissioners that this mistake ruined his reputation, cost him his income, and ended a career he had built over two decades. He said he felt very sorry for what he did, and that he still deals with the results of his error.

Even though he felt sorry, many commissioners thought his bad behavior was too big to ignore. Commissioner Abbi Silver, who used to be on the Nevada Supreme Court, pointed out that state law says applicants need to show they are good people with strong morals. She said that what Eder did as CFO of Seminole Gaming, taking gifts and not telling the truth about paying them back, did not match up with those rules.

After talking it over, Silver’s move to say no got backing from Commissioner George Markantonis and Chairwoman Jennifer Togliatti, making up most of the group and sealing the choice.Dreamscape Companies has not commented yet about how this decision might change things at the Rio, which is still being fixed up under the company’s watch.