this story is proof that a bank account balance does not indicate intelligence
On Dec 6, 12:13 pm, dick thompson <[email protected]> wrote: > * > * > > * > > Dow Jones Reprints: This copy is for your personal, non-commercial > use only. To order presentation-ready copies for distribution to > your colleagues, clients or customers, use the Order Reprints tool > at the bottom of any article or visitwww.djreprints.com > <http://www.djreprints.com> > > See a sample reprint in PDF format. > <http://online.wsj.com/public/resources/documents/Reprint_Samples.pdf> > Order a reprint of this article now <javascript:CopyrightPopUp();> > * The Wall Street Journal > > * BUSINESS > > <http://online.wsj.com/public/search?article-doc-type=%7BBusiness%7D&H...> > * DECEMBER 5, 2009 > > The Gambler Who Blew $127 Million > > * Article > > <http://online.wsj.com/article/SB125996714714577317.html#articleTabs=a...> > * Comments (139) > > <http://online.wsj.com/article/SB125996714714577317.html#articleTabs_c...> > > more in Business <http://online.wsj.com/public/page/news-business-us.html> � > > * Email <http://online.wsj.com/article/SB125996714714577317.html#> > * Printer > Friendly <http://online.wsj.com/article/SB125996714714577317.html#> > * Share: > > facebook > <http://online.wsj.com/article/SB125996714714577317.html#> ? 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More > <http://online.wsj.com/article/SB125996714714577317.html#> > > * smaller <http://online.wsj.com/article/SB125996714714577317.html#> > Text <http://online.wsj.com/article/SB125996714714577317.html#> > larger <http://online.wsj.com/article/SB125996714714577317.html#> > > By ALEXANDRA BERZON > > <http://online.wsj.com/search/search_center.html?KEYWORDS=ALEXANDRA+BE...> > > LAS VEGAS -- During a year-long gambling binge at the Caesars Palace and > Rio casinos in 2007, Terrance Watanabe managed to lose nearly $127 million. > > The run is believed to be one of the biggest losing streaks by an > individual in Las Vegas history. It devoured much of Mr. Watanabe's > personal fortune, he says, which he built up over more than two decades > running his family's party-favor import business in Omaha, Neb. It also > benefitted the two casinos' parent company, Harrah's Entertainment Inc., > which derived about 5.6% of its Las Vegas gambling revenue from Mr. > Watanabe that year. > > View Full Image > > Watanabe > Peter McCollough for The Wall Street Journal > > Terrance Watanabe, 52, is believed to have the biggest losing streak in > Las Vegas history, losing $127 million dollars in one year. Mr. > Watanabe, who now lives in the Bay Area, stands near the entrance to > Stanford University on Dec. 3, 2009. > > Watanabe > Watanabe > > Today, Mr. Watanabe and Harrah's are fighting over another issue: > whether the casino company bears some of the responsibility for his losses. > > In a civil suit filed in Clark County District Court last month, Mr. > Watanabe, 52 years old, says casino staff routinely plied him with > liquor and pain medication as part of a systematic plan to keep him > gambling. > > Nevada's Gaming Control Board has opened a separate investigation into > whether Harrah's violated gambling regulations, based on allegations > made by Mr. Watanabe. > > In April, the Clark County District Attorney's office charged Mr. > Watanabe with four felony counts in district court for intent to defraud > and steal from Harrah's, stemming from $14.7 million that the casino > says it extended to him as credit, and that he lost. Although Mr. > Watanabe has paid nearly $112 million to Harrah's, he has refused to pay > the rest. He denies the charges, alleging that the casino reneged on > promises to give him cash back on some losses, and encouraged him to > gamble while intoxicated. If convicted, Mr. Watanabe faces up to 28 > years in prison. > > Jan Jones, Harrah's senior vice president for communications and > government relations, says Mr. Watanabe's civil suit and his defense > against the criminal charges are attempts to get out of paying a debt > and to avoid accepting responsibility for his own actions. "Mr. Watanabe > is a criminal defendant who faces imprisonment," Ms. Jones says. "All of > his statements need to be seen in that light." > > Several former and current Harrah's employees say their managers told > them to let Mr. Watanabe continue betting while he was visibly > intoxicated, even though casino rules and state law stipulate that > anyone who is clearly drunk shouldn't be allowed to gamble. These > employees say they were afraid they would be fired if they did anything > to discourage Mr. Watanabe from gambling at the casinos. > > View Full Image > > Watanabe > Courtesy of Watanabe Family > > Mr. Watanabe made his fortune running the party-favor business he > inherited from his father, Harry. > > Watanabe > Watanabe > > Ms. Jones says company policy is to ask intoxicated gamblers to refrain > from gambling. She says Harrah's has conducted an internal investigation > into how its staff treated Mr. Watanabe but declined to release details > because of the ongoing litigation. > > Mr. Watanabe declined to be interviewed for this article. His lawyer, > Pierce O'Donnell, says Harrah's "preyed" on Mr. Watanabe's condition. > But he says his client also acknowledges that he "drank to excess." Mr. > Watanabe "takes full responsibility for his condition at the > time....He's not saying the devil made me do it." > > Luring the 'Whales' > > Mr. Watanabe's situation illustrates the often-uneasy relationships > casinos have with their biggest clients, also known as "whales." Casinos > vie to lure these high rollers by doling out luxury suites, use of > private jets, and a cadre of personal handlers to fulfill every flight > of fancy, from wire transfers to fishing trips to Alaska. > > Analysts say competition for this group has become especially fierce > because the portion of revenue from big-spending clients appears to be > increasing amid a downturn in overall gambling. Part of that analysis is > based on revenue from baccarat, a high-stakes game favored by high > rollers. Baccarat play on the Las Vegas Strip grew to 14.7% of gambling > revenue in the last 12 months from 13% during the same period in 2007, > according to state gaming regulators. Revenue from all gambling on the > Strip over the same period has declined 19.1%. > > But casino operators often struggle to manage high rollers. Some are > compulsive gamblers whose losses -- and lives -- can quickly spiral out > of control. In some instances, gamblers have tried to turn the blame > around on casinos in civil suits. Such attempts are rarely, if ever, > successful, experts say. > > In 1993, former Philadelphia Eagles owner Leonard Tose failed to > convince a jury in a civil suit against Hollywood Casino Corp. that > employees of the casino had gotten him so drunk that he didn't know what > he was doing when he gambled away millions in Atlantic City, N.J. As a > result, he had to pay the casino $1.23 million in gambling debt. He died > in 2003. > > Nevada treats unpaid gambling debt as a criminal matter handled by the > District Attorney's bad-checks unit. Most defendants agree to pay the > debt through a payment plan before charges are filed, with around 10% > tacked on to fund the D.A. unit. Clark County, which encompasses Las > Vegas, prosecutes roughly 200 cases involving gambling debts a month, > says Bernie Zadrowski, who runs the bad-checks unit. > > View Full Image > > Watanabe > The Omaha World-Herald > > Mr. Watanabe at an Oriental Trading Company office in Ralston, Neb., in > August 1995 > > Watanabe > Watanabe > > Just as in civil cases, people with alleged unpaid debts sometimes try > to get out of criminal charges by claiming that casinos had a hand in > keeping them intoxicated. Although Mr. Zadrowski declined to comment > specifically on Mr. Watanabe's case, he says this kind of defense never > works in criminal court: "Uniformly, the rule is nobody made you drunk." > > State regulators have the authority to fine casinos for letting people > gamble who are visibly intoxicated, but such fines haven't been levied, > says Brian Duffrin, executive secretary to the Nevada Gaming Control > Board and the Nevada Gaming Commissions. > > Still, casinos will sometimes bar gamblers who are behaving erratically > or whom they suspect won't pay their debts. "It almost becomes a > cost-benefit decision," says Glenn Christenson, a former Station Casinos > executive who is chairman of the National Center for Responsible Gaming, > an industry-funded addiction organization. > > Mr. Watanabe says in court documents that he was barred from the Wynn > casino in 2007 because of compulsive drinking and gambling. A Wynn > spokeswoman declined to comment on the matter. > > Harrah's Caesars and Rio casinos continued to put out the welcome mat. > As part of the criminal case against Mr. Watanabe, Wilson ... > > read more » > > wsj_print.gif > 2KViewDownload > > icon_email.gif > < 1KViewDownload > > icon_print.gif > < 1KViewDownload > > icon_smaller.gif > < 1KViewDownload > > icon_larger.gif > < 1KViewDownload > > OB-FA476_whalep_D_20091204175542.jpg > 7KViewDownload > > BTN_insetClose.gif > < 1KViewDownload > > OB-FA476_whalep_G_20091204175542.jpg > 22KViewDownload > > P1-AS774_WhaleJ_D_20091204190350.jpg > 26KViewDownload > > P1-AS774_WhaleJ_G_20091204190350.jpg > 102KViewDownload > > OB-FA464_whalep_D_20091204172010.jpg > 44KViewDownload > > OB-FA464_whalep_G_20091204172010.jpg > 162KViewDownload > > P1-AS773_WhaleJ_D_20091204205634.jpg > 25KViewDownload > > P1-AS773_WhaleJ_G_20091204205634.jpg > 84KViewDownload -- Thanks for being part of "PoliticalForum" at Google Groups. 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