VEGAS INC Magazine - Latest Las Vegas business news, features and commentaries about gaming, tourism, real estate and more
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In business legislature state considers decriminalizing recreational marijuana By Anjeanette Damon staff writer Nevada Assemblyman Joe Hogan, DLas Vegas, introduced a bill to legalize and tax marijuana last month. Under Assembly Bill 402, Nevadans older than 21 could legally possess up to one ounce of marijuana for recreational use and up to six marijuana plants. earnings stratosphere parent company suffers $8.3m quarterly loss By Richard N. Velotta senior staff writer An executive with the company that owns the Stratosphere said he expects the development of a new Strip resort by the Genting Group will expand the north Strip market and attract new business to the area. Ned Martin, chief financial officer for American Casino and Entertainment Properties, said he doesn't expect Genting's planned Resorts World Las Vegas to negatively affect the Stratosphere, although he admitted it's hard to predict how adding 3,500 hotel rooms would change Southern Nevada's room capacity outlook. Martin commented in response to an inquiry during the ACEP earnings call. The company posted a fourth-quarter loss of $8.3 million, citing soft occupancy and room rates and increased repair and maintenance expenses. The company, which also owns two Arizona Charlie's neighborhood casinos and the Aquarius in Laughlin, reported the loss on revenue of $79 million for the quarter that ended Dec. 31. A year ago, the company had a $7 million loss on revenue of $81.5 million. Net revenue decreased 5.1 percent at the Stratosphere, the company said, with lower occupancy rates leading to reduced gaming revenue. In addition, the property's signature Top of the World restaurant was closed for three weeks for renovations. Arizona Charlie's net revenue also fell by 5.1 percent, with most of the decline attributed to the Boulder Highway location. The Decatur location also had lower slot revenue, despite increased promotional efforts. The Aquarius had a 2.9 percent increase in revenue for the fourth quarter over 2011, attributing that to a 3.6 percent spike in casino revenue. | 1 APRIL 2013 20130401_VI11_F.indd 11 | Nevada already allows for medical marijuana possession, but has no legal system for obtaining the drug. Hogan's bill would allow for the wholesale cultivation and retail sale of marijuana. A 25 percent excise tax would be charged at each step of bringing the drug to market: from wholesaler to the processing facility, from the processing facility or wholesaler to the retailer and from retailer to customer. All tax revenue from marijuana sales would be earmarked for public schools. Stephen Frye, a retired Las Vegas psychiatrist pushing the measure, estimat- ed $500 million could be generated for education. Hogan said he is sponsoring the measure because "prohibition doesn't work." Nevada is the sixth state to consider decriminalizing recreational marijuana use. FORWARD TOGETHER #1 TM SBA 504 LENDER IN NEVADA - U.S. Small Business Administration • ComprehensiveFinancingCapabilities • LocalDecisionMaking • ASingleRelationshipManager • TreasuryManagementServices 2/13 702.248.4200 bankofnevada.com Bruce Hendricks Chief Executive Officer John Guedry President and Chief Operating Officer Bank of Nevada is an affiliate of Western Alliance Bancorporation 11 3/28/13 2:55:29 PM