Dotty’s operator files lawsuit against Clark County Commission
The ownership of Dotty’s Gaming & Spirits filed a federal lawsuit against the Clark County Commission late Tuesday, seeking to overturn last month’s change in an ordinance that effectively put an end to company’s business model.
The lawsuit, filed by Dotty’s operator Nevada Restaurant Services, claims its due process rights were violated with county commissioners voted 5-2 on April 5 to change an ordinance that governs the operation of slot machines inside taverns.
Dotty’s attorneys said in the lawsuit the new ordinance would require the tavern owner change its business model and violate the company’s "reasonable expectation of entitlement to continue to operate without the costly retrofitting obligations that the ordinance imposes."
The Dotty’s business model focuses heavily on gaming. County audits last year found gaming revenues accounted for more than 90 percent of the cash flow at several locations.
Dotty’s does not have operating kitchens so smoking is allowed. Dotty’s offers customers prepackaged food and minimal beverage options from a service counter, and the slot machines are all slant-top machines with individual chairs.
Dotty’s critics also believe the business may be skirting state law because the company’s gaming revenues are not incidental to the primary business.
A majority of the commission voted for the ordinance changes after the Nevada Resort Association, two slot machine route operation companies, the Nevada Tavern Owners Association and one of the valley’s largest tavern operators backed them.
Under the ordinance, new taverns must have 2,500 square feet of public space, an operating kitchen open at least 12 hours a day, be 2,000 feet away from another tavern and have a bar with eight slot machines. State gaming laws allow taverns and other restricted locations to have up to 15 slot machines.
The ordinance also requires that existing taverns must add bars with eight embedded slot machines. They were given two years to comply. Dotty’s would be included in the two-year rule and will have to conform.
Dotty’s wants a U.S. District Court judge to halt the county’s enforcement of the new ordinance and overturn the commissioners’ decision.
In the lawsuit, attorney’s said Dotty’s "caught the eye of Station Casinos, Boyd Gaming Corp., and . the Nevada Resort Association." They also called Commissioner Steve Sisolak "the public face of the anti-Dotty’s crusade."
Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871. Follow @howardstutz on Twitter.