Nevada Regulators Have Concerns About Fifth Street Gaming’s Compliance Issues

Nevada’s gaming regulators are taking a close look at Fifth Street Gaming after tax and audit violations came to light at its North Las Vegas property. The company, which runs Ojos Locos Sports Cantina Y Casino, will face more questions when the Nevada Gaming Commission meets on November 20.

Nevada Commission to Weigh Sportsbook Revenue Restriction for Fifth Street Gaming

At the upcoming meeting, the Commission will look at a plan from the Nevada Gaming Control Board to limit Fifth Street’s share of sportsbook revenue for two years when working with Boomer’s Sportsbook. This limit would not affect Boomer’s, which hopes to become the new sportsbook operator at the venue if approved.

The investigation has its roots in regulatory worries that go back to a 2023 letter pointing out several financial-related issues. At a hearing not long ago, Robert Wright, who runs Ojos Locos, said that most of the earlier problems were linked to the tax on live shows and happened when they were doing big upgrades in late 2022 and early 2023, as reported by CDC Gaming. He mentioned that the casino has made its checking systems better, closed down the Silver Nugget place nearby to keep a closer eye on things, and brought in a new person to check the books to make their internal rules stronger.

Board Chairman Mike Dreitzer was not happy with how the company was doing. He said a new check showed more problems with keeping records, rules for internal control, and figuring out money coming in. Dreitzer asked why these same issues, first brought up two years ago, still were not fixed.

Casino Operator Works to Restore Compliance While Facing Extended Evaluation

Wright said they had made big changes, like putting in a new slot system and getting the company’s controller more involved. He said they now check the books every month to make sure they are following the rules. Even after Wright said this, Dreitzer pointed out that the 2025 letter from the rule makers still found lots of problems, hinting that they were still not following the rules like they should.

Despite recognizing the actions taken to address the issues, Dreitzer stressed that Fifth Street needed more time to comply with regulatory requirements. He suggested a two-year time limit to allow for another evaluation, noting that while the company had made progress, it was still working to stabilize its accounting systems.

Wright pointed out that with the Silver Nugget shut down, management could now pay more attention to financial oversight instead of operational concerns. He mentioned that they aimed to reopen the property in the future once they finalize a long-term strategy. Fifth Street Gaming, which also owns the Downtown Grand in Las Vegas, has committed to keep improving its compliance methods as it strives to regain full trust from Nevada’s regulators.