Nevada Regulators Move to Limit Sportsbook Revenue at Ojos Locos
Nevada regulators are weighing limits on sportsbook revenue at Fifth Street Gaming’s North Las Vegas casino after flagging tax and audit deficiencies.
LISTEN TO THIS ARTICLE:The Nevada Gaming Control Board has recommended that the Nevada Gaming Commission restrict the operator’s share of sportsbook revenue at Ojos Locos Sports Cantina Y Casino for two years and require the operator to return to the Commission for further review. The Commission is scheduled to consider the recommendation when it meets on Nov. 20.
Fifth Street Gaming, which owns Ojos Locos (formerly the Lucky Club) and operates the Downtown Grand in Las Vegas, is in talks to move Boomer’s Sportsbook into the North Las Vegas venue. The proposed restriction would affect Fifth Street’s revenue participation but would not limit Boomer’s role as the prospective sportsbook operator.
At a recent hearing, Ojos Locos General Manager Robert Wright acknowledged a series of compliance concerns that trace back to a 2023 letter from regulators and were amplified by a follow-up communication this year. Wright told the board that many of the earlier items were related to the live-entertainment tax and stemmed from a period of simultaneous operational changes.
“There were a bunch of changes in the company and the accounting. All of those things have been addressed”, Wright said. He added that the company upgraded its auditing systems, implemented a new slot accounting platform and closed the Silver Nugget casino to consolidate oversight while those changes were made.
Board Chairman Mike Dreitzer pressed Wright about recurring accounting record issues raised in the 2025 letter. “A review this year brought about a whole host of additional matters, including the one recurring matter relating to accounting records. Why was that not addressed when it was brought to your attention in 2023?” Dreitzer asked.
Wright said many records gaps coincided with the property remodel and technology transitions in late 2022 and early 2023. He pointed to a controller who had used a raw slot win calculation rather than a method that accounts for promotional free play; that practice, Wright said, has been corrected, and the company has retained a more experienced auditor.
Dreitzer catalogued further concerns: records retention, internal control policies, mandatory count procedures and gross revenue computations. “I understand some of these relate to the time period in question, but these are pretty serious matters that need to be addressed in full. Would you agree?” he asked. Wright replied, “100%”.
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Dreitzer argued that the extent of issues raised in the recent letter suggests a pattern over four years that falls short of the standards the Nevada Gaming Commission expects of licensees. He proposed the two-year limitation as a measured step to allow Fifth Street time to strengthen controls and demonstrate sustained compliance.
This is a fair amount of data and responsibility to fall on your shoulders in a direct way,” said. “I want you to use this time to continue to improve. I appreciate what you are doing, but it feels like it’s not quite set and you’re still trying to figure things out. You need time to get it set and for it to gel … and meet the standards we expect from our licensees.”
Industry compliance consultant Jonas Taylor, who has worked with casinos on audit remediation, said regulators tend to focus less on isolated errors than on systemic weaknesses. “When a property repeatedly misses basic controls – document retention, count procedures and consistent revenue calculations – regulators view it as an enterprise risk. The usual remedy is independent audits, tighter governance and a period of heightened oversight”, Taylor said.
Fifth Street says it has increased training for its controller, moved to a new auditor and centralized accounting oversight following the Silver Nugget closure. The company also faces expectations to demonstrate corrected gross revenue reporting and robust internal controls during the proposed two-year review period.
The Commission’s decision on Nov. 20 will set the next enforcement milestone. If commissioners approve the Board’s recommendation, Fifth Street will operate under the limitation while regulators assess whether remediation efforts fully resolve the outstanding deficiencies. The case underlines Nevada’s continued focus on precision in tax and revenue reporting as casino operators introduce new technology and third-party partnerships.
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