This is the online home of David G. Schwartz, who 
The intoxication defense
A high-roller who lost an incredible amount of money gambling in Las Vegas casinos is seeking to avoid paying some of his markers, claiming that he was too drunk to know what he was doing. From the LV Sun:
High-rolling Nebraska philanthropist Terrance K. Watanabe is mounting an unusual defense to charges he failed to pay $14.7 million in Strip gambling debts.
He is accusing Caesars Palace and the Rio, both owned by Harrah’s Entertainment, of providing him with a steady flow of alcohol and — in the case of Caesars Palace — prescription painkillers as his losses increased.
His Las Vegas attorney, David Chesnoff, lays out the defense in a letter to prosecutors, claiming that casino employees will testify that the resorts kept the prolific gambler in a constant state of intoxication in the latter months of 2007 in violation of state gaming regulations.
Gambler who lost millions claims he was plied with alcohol, drugs – Las Vegas Sun.
Some interesting points: Watanabe reportedly lost $112 million at Harrah’s casinos in 2007. The $14.7 million in bad markers is about 13 percent of the total. Was it worth it to go after these markers? Some would say no, citing customer service, while others would say that if Watanabe had won, he’d have gotten paid, so it’s only fair that he pay every marker.
In 2009, $112 million is almost enough to buy a Las Vegas casino–at least a small one. According to David McKee, it would be enough to buy the Slots a Fun and have plenty left over for renovation and expansion–or pay for Criss Angel’s Believe.
Try to wrap your head around that: this guy could have starred in his own Cirque show, complete with a custom theater, with the money that he lost. It’s staggering.
While nothing is impossible, Watanabe probably is facing an uphill battle: the same argument didn’t work for Leonard Tose back in the early 1990s. This seems to be a similar case.
If Watanabe does win, we’d probably see a major re-evaluation of how casinos do business. Could blackjack tables be fitted with breathalyzers? Probably nothing that extreme, but you’d see a lot less complimentary alcohol.
This may be neither here nor there, but I know several people who come to Las Vegas who’d like nothing more than to be kept in a constant state of intoxication. Isn’t that one of the big sales points?
Posted in business of gamblingon 05/18/2009 10:28 am by Dave
05/18/2009 at 11:30 pm
This is a bizarre and depressing story. Mr. Watanabe is going to have a tough time winning his lawsuit.
An older gentleman I used to work with told me about his nephew who inherited around $40 million dollars. He said his nephew inherited the millions in his early 20’s and used to drink, do drugs, etc. and has been in rehab a couple of times to get rid of his vices.
This story has a happy ending though. On his 40th birthday he hired the band Kiss to play for him and his friends in his backyard. I guess if you have a ton of money Kiss will perform for you anywhere, anytime.
05/20/2009 at 10:51 am
I was also reminded of the Leonard Tose case. I’m not sure if the defense called the employees however. That will be an interesting twist in this case. So many dealers are angry at management these days. Might be a good way to get back at them. Sad.
05/20/2009 at 12:07 pm
It’s about time for Slots-of-Fun to build a skyrise hotel and a bridge to The Riviera. :>))
Which reminds me how Westward Ho built a cool addition (with casino, bar, Karaoke stage, convenience store, gas station, and a little restaurant) on their back property facing Industrial (around 2005).
It was an easy place to get in and out of (parking wise), but was only open for (it seems) 11 months.
They must have gotten a pretty good sale offer.
That might be one of the shortest lifespans ever for a new casino space. All-in-all, it was about as big as the Wild West Casino.
So long Ho. I wonder when Slots of Fun will bite the dust. It’s strange to see it still surviving as one of the last Neon Casinos.
05/20/2009 at 4:57 pm
An uphill battle for sure.
Surveillance tapes and internal bar records may show number of drinks served. It might be a bit difficult to determine degree of sobriety from a video tape.
I’ve heard that Benny Binion was the first to offer free drinks in the casino. I believe drinks are banned in UK casinos and that some states ban free drinks or extremely low-cost drinks in casinos.
06/05/2009 at 8:21 am
I may be wrong, but don’t you have to sign some type of contract to get a marker? Also, aren’t contracts null and void if it is found out later that the person signing them is incapacitated? I really don’t know much about makers, having never taken one out but I would think that whenever money is handed over to someone and expected to be paid back that something in writing would have to be signed. Not that I condone what the man has done, just thinking about the logistics.
08/20/2009 at 6:49 am
Many interesting comments,
It’s important to note that Watanabe’s case is a criminal prosecution- there is no ‘winning his lawsuit’ as a possible outcome. It will be interesting to see if the DA can prove criminal intent when Terry paid back 97 million and is simply broke.
Casinos have to pursue these debts because courts have ruled that markers be taxed as revenue even if they are uncollected.
As to Jenn’s comments: I’m researching that very topic for a scholarly article. It seems that ‘involuntary intoxication’ is the key to a contract defense.
Terry’s trial is scheduled for November. Personally, I wish him the best.