Nevada Regulators Express Concerns Over Fifth Street Gaming’s Compliance Issues

Nevada’s gaming regulators are tightening the reins on Fifth Street Gaming after uncovering multiple tax and audit violations at its North Las Vegas property. This scrutiny centers on Ojos Locos Sports Cantina Y Casino, a key venue for the company. The looming questions and concerns are scheduled to be addressed when the Nevada Gaming Commission convenes on November 20. During this meeting, the Commission will review a proposal from the Nevada Gaming Control Board aimed at curbing Fifth Street’s share of sportsbook revenue for the next two years. This restriction, however, will not extend to Boomer’s Sportsbook, which is slated to become the new sportsbook operator at the venue pending approval.

The origins of this investigation trace back to a 2023 letter highlighting several financial deficiencies. Robert Wright, the operator of Ojos Locos, attributed most of these issues to miscalculations on the tax for live entertainment, which coincided with significant upgrades at the facility in late 2022 and early 2023. Wright stated that they have enhanced their auditing systems, shut down nearby Silver Nugget to tighten oversight, and brought in a new auditor to fortify internal compliance. Despite these efforts, Board Chairman Mike Dreitzer voiced his dissatisfaction, revealing that a recent inspection une

The origins of this investigation trace back to a 2023 letter highlighting several financial deficiencies. Robert Wright, the operator of Ojos Locos, attributed most of these issues to miscalculations on the tax for live entertainment, which coincided with significant upgrades at the facility in late 2022 and early 2023. Wright stated that they have enhanced their auditing systems, shut down nearby Silver Nugget to tighten oversight, and brought in a new auditor to fortify internal compliance. Despite these efforts, Board Chairman Mike Dreitzer voiced his dissatisfaction, revealing that a recent inspection unearthed persistent problems with record-keeping, internal controls, and revenue reporting. Dreitzer was particularly perplexed as to why issues flagged two years earlier remained unresolved.

Wright elaborated on the corrective measures they had taken, including implementing a new slot management system and increasing the involvement of the company’s financial controller. He noted that they now conduct monthly audits to ensure regulatory compliance. However, Dreitzer remained skeptical, pointing out that a 2025 letter from regulators still identified major shortcomings, suggesting ongoing lapses in adhering to the established rules. Despite acknowledging the improvements made, Dreitzer emphasized that more time was required for Fifth Street to fully align with regulatory expectations. He proposed