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Nevada’s gaming regulators have their eyes on Fifth Street Gaming right now, after tax and audit problems surfaced at its Ojos Locos Sports Cantina Y Casino in North Las Vegas. The Nevada Gaming Commission plans to dig into the situation at its November 20 meeting, zeroing in on whether Fifth Street is following state rules and keeping its internal controls tight.
This all started with a letter from the Nevada Gaming Control Board in 2023. They flagged a bunch of problems—sloppy record keeping, weak oversight, and murky revenue reporting. Not exactly what regulators want to see.
Potential Sportsbook Revenue Restrictions
At the upcoming meeting, the NGC is set to consider a recommendation from the NGCB that would temporarily limit Fifth Street’s share of sportsbook revenue from its partnership with Boomer’s Sportsbook for a period of two years. Notably, the restriction would apply only to Fifth Street’s share; Boomer’s itself would not be affected. If approved, Boomer’s could operate as the new sportsbook at the Ojos Locos venue.
At a recent hearing, Ojos Locos boss Robert Wright admitted there’d been problems, mostly tied to taxes on live shows, and some big upgrades were finished around the end of 2022 and early 2023. Wright said they’ve made changes—tougher accounting checks, shutting down the nearby Silver Nugget to improve oversight, and bringing in a new compliance manager.
Despite these steps, Board Chairman Mike Dreitzer voiced concern that recurring compliance issues persisted. “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.
Efforts to Restore Compliance
Fifth Street Gaming has implemented significant measures to address the NGCB’s concerns. Wright noted the introduction of a new slot system, increased involvement from the company’s controller, and monthly internal audits to ensure adherence to regulatory standards.
Still, Dreitzer stressed that continued oversight would be necessary. The 2025 NGCB letter identified lingering gaps, suggesting that the casino had yet to fully comply with all requirements. That’s why regulators want the two-year revenue restriction: they need more time to check that Fifth Street’s financial systems actually work and that the fixes stick.
Wright argued that shutting down the Silver Nugget has let management focus on the big picture, not just daily headaches. He also said they’ll reopen it once they’ve got a long-term compliance plan in place.
Fifth Street, which also runs the Downtown Grand in Las Vegas, says it’s committed to better accounting and tighter regulatory practices across the board. They’re trying to rebuild trust with the state and make sure their systems measure up.
Looking Ahead
The forthcoming NGC meeting will be critical in determining the next steps for Fifth Street Gaming. The temporary revenue restriction is a cautious move—regulators want to see if Fifth Street’s improvements hold up before lifting any limits. For now, the company stays under the microscope, and the state wants proof that its fixes are real and lasting.
Source: Gambling News
