“This has become clear at the Balkan Gambling Industry Exhibition opened Monday.

“Many casinos and gambling halls are facing bankruptcy because of the decreased number of visitors.

“‘Since the beginning of 2009, we have been witnessing a trend of gambling halls closing down’, Dimitar Terziev, Chair of the State Commission on Gambling, said…”

Commissioner Steve Sisolak questioned why the investigation will take so long and if it will place a financial burden on the owners.

“Is there nothing we can do to speed this up?” Sisolak said. “In fairness to the individuals, I don’t know what the cost of this is, but when it gets dragged out for this length of time, it would seem it would be enormous.”

Business license director Jacqueline Holloway estimated the cost of the investigation, which will include sending as many as three police detectives to Miami, where the owners operate other businesses, at $10,000 to $15,000. She added that it customarily takes a year or longer to complete investigations of large applicants, especially if they are from another state.

Barry Reinink, a detective with police special investigations unit, said officers “want to do their due diligence in looking at every aspect of those businesses.”

Police officials need to complete background checks on two of Privé’s owners and three managers before the club can be issued a permanent license.

The owners of Privé, and the ultralounge The Living Room, will need to return to the county commission in early January for another license hearing.

“We’ve worked so hard with Metro, Planet Hollywood and business license,” Privé attorney Jay Brown said. He said the club will be scrutinized while it operates under a temporary license and could be closed quickly by county officials if new violations surface.

“The good thing about the temporary is that it also allows us to take prompt and precise enforcement action if we find something wrong,” Holloway said.

The club was shut down by the county in late July after its liquor license was revoked because the resort and club were found to be failing to “abide by the duties of a liquor licensee.”

Privé reopened four weeks later under a 30-day license after the new owners were in place.

The clubs were cited for three violations, which included allowing topless and lewd activity to take place on site, in 2008 by the Business License Department.

Privé has agreed to reimburse Planet Hollywood $375,000 of a $500,000 fine that was issued by casino regulators, who said the resort did not “maintain sufficient control over” the nightclub.

The resort will have to pay an additional $250,000 fine if a similar complaint is filed before July 31, 2011.

Holloway said the club’s new managers, as well as management from Planet Hollywood, have been “aggressive” in monitoring Privé and The Living Room since the club was closed this summer.

Privé is owned by Miami-based Opium Group.

Five commissioners approved the 90-day license, with commission Chairman Rory Reid not voting.

Commissioner Lawrence Weekly voted against the motion without comment.

According to court reports, Sir Allen Stanford owes the Bellagio over US$250,000 in markers. Mr. Stanford is currently facing charges of financial fraud by orchestrating a “Ponzi scheme” on his investors.

The holding company that manages the Bellagio has filed suit to recover US$258,000 from loans the casino paid out to Mr. Stanford for use in the casino last January. A month later, when the casino sought repayment on the markers, Mr. Stanford’s checks were returned due to insufficient funds. The casino also seeks to recoup the 18% interest rate on the loans plus court costs.

Mr. Stanford, who previously ran his “Stanford Investment Group” out of an office in Houston, is currently sitting in a prison cell in Texas. US Justice Department officials have charged Mr. Stanford with numerous counts of investment fraud and money laundering while he lied to his customers about the rate of return on certificates of deposit issued by his bank based on the island of Antigua.

Among the accusations that Mr. Stanford faces is that he operated a “Ponzi scheme”, also known as a “pyramid scheme”. In such a scheme, the person perpetrating the fraud engages an initial wave of investors, promising unrealistic return rates on their investments. After a second wave of investors buys in, the perpetrator pays the first wave with the second wave’s money. The process continues with each successive wave of investors.

Dick DeGuerin, Mr. Stanford’s attorney, stated that the reason that his client could not repay the Bellagio was that federal law enforcement officials seized his assets. Mr. DeGuerin sent a message to a newspaper in Britain, where Mr. Stanford received an honorary knighthood, stating that Bellagio should pursue the federal government and the company receivers to recover the debt.