California Hotel Sues Casino Operator for Failure to Pay Rent

Locked gateThe owner of the Red Lion Woodlake Hotel has filed a lawsuit against the Sacramento Casino Royale LLC for failing to pay rent for a poker room it had operated on the premises.

In November, the card club was shut down by regulators after the owners were found to be short the necessary cash to pay off all chips in circulation. The discrepancy came to light when a player won $60,200 at the Pai Gow tables but was only paid $20,000. Investigators later found that operators were short around $268,684 in total.

Regulators stated that the casino’s “inability have adequate funds available poses an immediate threat to the public’s health, safety and welfare.

Shri Sidhi Vinayaka Hotel Inc., owner of the hotel, filed suit on December 12 against the casino company and its managing partner James Kouretas. William Blanas, the son of a former Sacramento Sheriff, owns 25% of the Casino Royale and himself sued Kouretas in May, alleging that his former partner had committed fraud.

Blanas told authorities that Kouretas would not hand over financial documents after repeated requests. He claims that Kouretas was dipping into the casinos cash for use in his personal expenses.

Blanas also says that a relocation of the business earlier in the year had cost much more than Kouretas had estimated, and that revenue had dropped significantly at the new site. Last month Kouretas filed his own suit alleging that the hotel had violated its contract.

Shri Sidhi Vinayaka insists that it is owed back rent on the space and says that it had leased it to Casino Royale for $4,000 a month plus expenses.