Key Moments:
- Nevada Gaming Commission schedules a November 20 review of Fifth Street Gaming’s compliance practices.
- The Nevada Gaming Control Board has recommended a two-year restriction on Fifth Street’s share of sportsbook revenue at Ojos Locos Sports Cantina Y Casino.
- Fifth Street Gaming has introduced new systems and oversight in response to regulatory concerns, but gaps remain unresolved.
Regulatory Scrutiny Intensifies
The Nevada Gaming Commission is closely examining Fifth Street Gaming after several audit and tax issues surfaced at the Ojos Locos Sports Cantina Y Casino in North Las Vegas. The Commission will address this matter at its November 20 meeting. The focus will be on regulatory compliance and the strength of Fifth Street’s internal controls.
Audit Findings and Revenue Restrictions
The current investigation began with a 2023 letter from the Nevada Gaming Control Board. It cited several issues, including poor record keeping, weak oversight, and unclear revenue reporting. As a result, the NGC is considering a recommendation to temporarily limit Fifth Street’s portion of sportsbook revenue from its partnership with Boomer’s Sportsbook for two years. This potential restriction would only affect Fifth Street Gaming, allowing Boomer’s to remain the sportsbook operator at the Ojos Locos venue.
| Casino | Operator | Proposed Restriction | Duration |
|---|---|---|---|
| Ojos Locos Sports Cantina Y Casino | Fifth Street Gaming | Temporary reduction of sportsbook revenue share | Two years |
Operational Changes and Ongoing Challenges
At a recent hearing, Robert Wright, the head of Ojos Locos, acknowledged past issues primarily related to taxes on live entertainment. He reported that significant upgrades were completed by the end of 2022 and early 2023. Wright also described various steps taken to address concerns: more rigorous accounting checks, closure of the adjacent Silver Nugget property to strengthen oversight, and hiring of a new compliance manager.
Despite these initiatives, Board Chairman Mike Dreitzer expressed uncertainty about whether corrections had been effective. “A new review revealed ongoing deficiencies in record keeping, internal controls, and revenue reporting,” Dreitzer said. He questioned why issues identified two years ago had not been fully resolved.
Continued Corrective Efforts
Fifth Street Gaming has implemented a new slot management system, increased the role of its controller, and begun monthly internal audits to reinforce regulatory compliance. Nonetheless, a 2025 letter from the Control Board indicated that several discrepancies persist and full compliance has not yet been achieved. This situation prompted the recommendation for a two-year sportsbook revenue share restriction, allowing more time for regulators to verify that recent changes are effective and sustainable.
According to Wright, closing the Silver Nugget has enabled management to prioritize compliance improvements over day-to-day distractions, with plans to reopen the location once long-term regulatory practices are established.
Commitment to Compliance and Next Steps
Fifth Street Gaming, which also manages the Downtown Grand in Las Vegas, has stated its dedication to enhancing financial controls and rebuilding trust with state authorities. As they continue working towards regulatory compliance, the outcome of the November 20 NGC meeting will be pivotal. The proposed temporary revenue restriction serves as a cautious measure while state regulators monitor the effectiveness and durability of Fifth Street’s recent modifications.
- Author
Daniel Williams
