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MGM Grand Hotel vs. Russ Gerson

Added: (Fri Nov 22 2013)

Pressbox (Press Release) - What happens when you borrow money from a casino and canít pay back
the money you owe?
Although owing someone money isnít a crime, signing an IOU worth $250
or more without money to back it up is felony theft under a 1983
Nevada law, which defines casino markers as legally binding documents
like checks.
The Las Vegas district attorney processes about 100 marker cases each
week and thousands a year involving big Strip resorts and smaller,
neighborhood casinos. That volume has increased by 5 to 10 percent in
the recession, peaking in 2009.
Russ Gerson, according to his current Linkedin profile is President
of Phoenix Star Capital has been and is party to numerous lawsuits
with Las Vegas Casinos. One example is the following case:
MGM Grand Hotel v. Russ Gerson, No. A-13-675324-C. (Clark County Nevada
District Court, January 18, 2013).Russ Gerson was the defendant in this
breach of contract / commercial instrument lawsuit filed by MGM Grand Hotel.
Default judgment was entered on July 1, 2013 in the amount of USD 266,101.89
(including interest). This case was closed on September 19, 2013. The status of the judgment was not reported in online court documents. Gerson has
had previous judgments for breach of contract/commercial instrument
lawsuits that were filed by Bellagio and Treasure Island.
Nevada casinos commonly grant credit to gamblers who provide evidence
of sizable bank accounts to cover the IOU ó or if they have a credit
history with the casino that indicates debt repayment. By signing
markers, the gambler essentially receives an interest-free loan from
the casino with flexible terms.
Although a gamblerís first marker triggers an application process and
a bank inquiry akin to taking out a personal loan, subsequent markers
involve little paperwork other than a check of the personís gambling
history with Central Credit, a credit reporting bureau for the casino
industry.
In some cases, casinos will extend gamblers additional credit after
they get a nod from a casino host, who is eager to keep the customer
gambling ó and whose pay depends in part on what the customer loses at
the tables.
To avoid antagonizing players and keep them coming back, casinos
generally give gamblers several months to repay debts that can run
into the hundreds of thousands of dollars.
But when they donít, casinos send a demand letter and can turn to the
district attorneyís bad-check unit, which prosecutes such crimes. Or
they may file a civil suit, sometimes in addition to prosecution.

Submitted by:Azizur Rahman
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