BARBWIRE
Cladianos & casino corporate welfare
by
ANDREW BARBANO
"Las Vegas is a great place to visit, but you wouldn't want to live there.
Reno is the reverse.
The Ancient Tahoe Mariner
The corollary to his timeless observation appeared in last Friday's Reno
Gazette-Journal sounding board: "I, for one, am happy to see the Sands
going down the tubes. It makes me feel good, not because people will lose
their jobs. This town doesn't need gambling. We need to diversify into
other stuff," said an anonymous caller to the print equivalent of
no-account talk radio.
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The Sands Regency Hotel-Casino just had to account for all its years of
no-account operation. Although it's not going under, the Cladianos family
still managed to sell a 46 percent interest for $6.2 million on top of the
bundle they made taking the company public. I thus found it humorous to
hear Pete Cladianos, Jr., complain about his bad fortune and blame everyone
and everything but his own lousy management.
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The sounding board caller was also wrong about job loss, but shouldn't
have been. The Cladianos clansmen should lose theirs after the takeover,
but won't. They will stay on to run the place, in effect able to have their
cake and eat it, too. Plus multiple millions in the bank to sooth their
hurt feelings.
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Perhaps they'll piddle a few pence in the direction of Katherine
Valgardson and Lois Metzer, former Sands dealers fired in 1986 for being
too old (age 58 and 52, respectively). A jury awarded them $1,055,000 in
back pay and damages which our user-friendly courts promptly limited to
lost wages of $194,570. The Nevada legislature moved immediately to make
sure no future Nevada jury could ever again award so much to a screwed
worker. As a result of the Sands case, it's nearly impossible to get a
lawyer to bring a wrongful termination action. Age discrimination has been
basically legal in Nevada ever since.
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In 1995, Cladianos said his mother always told him "to thine ownself be
true." Alas and alack, he hasn't a clue. He blames his rich guy troubles on
"homeless men who scare his customers and dirty sidewalks that spoil his
casino's image," according to the Reno paper.
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For years, the Sands got fat off the Canadian market. While they have
reputations as lousy tippers, snowbirds have one trait casino moguls adore:
they stay put. Once in your store, they tend to stay there, captive
audience.
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Cladianos did not need to worry about competitors as long as he could fly
in golden Canadians to goose. High yield, low cost, minimal marketing
effort: profit paradise for an old-country, mom-and-pop store.
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Other such operations changed with the times. (Some, like the Onslow,
Virginian and Mapes, did not.) Pop Carano and Pop Ascuaga didn't put all
their eggs in one basket. Not so Pop Cladianos. By the early 1990s,
Canadians found themselves able to fly to Las Vegas cheaper than Reno. Pop
goes the weasel.
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Reno's answer has been corporate welfare, hundreds of millions in tax
money capped off by a hyper-expensive, publicly funded bowling alley. This
column broke the story of serious problems more than a year before the
first of almost 100 percent ($25 million and still rising) in cost overruns
became generally known.
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In late 1993, the Reno Gazette-Journal interviewed a marketing expert. "He
predicted that at first it'll seem as if his negative conclusions about
Reno's image have been far off base. However, after a two-year jump in
visitor counts and gaming totals, Truckee Meadows tourism will take a sharp
downward skid starting in 1997, unless it develops a stronger image and
better entertainment."
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We're only halfway through the year, but the minions of the
gambling-industrial complex have been bleating like stuck pigs, even with
business up over last year after a harsh winter. Maybe they see the
graffiti on the wall. The only stronger image is the one on dirtier
sidewalks, which Cladianos was apparently too stingy to assign his low-wage
workers to scrub.
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Help may be on the way. On August 22, the Atlantis Hotel-Casino is hosting
a seminar entitled "Partnerships in Community Action," a summit on welfare
reform. Advocates for the poor worry that gamblers are licking their chops
at the prospect of federal money from "welfare to work" programs giving
them free employees. I'll bet they still don't clean the sidewalks
Cladianos blamed on city government.
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Wiseman George Carlin once said that the only reason we still have
homelessness is because "some greedy son of a bitch hasn't figured out a
way to steal a couple million solving it." That day may finally have
arrived where the only welfare goes to corporations which continue to carp
about their poor lot in life.
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Be well. Raise hell.
-30-
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© Andrew Barbano
Andrew Barbano is a Reno-based syndicated columnist and 28-year Nevadan.
Barbwire by Barbano has appeared in the Sparks Tribune since 1988 and parts of this column were originally published 8/3/97.
Reprints of the UNR financial scandal newsbreaks remain available
for the cost of copying at
Nevada Instant Type in Sparks and both Office Depot Reno locations.
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