Reno’s Iconic Siena Casino Files Bankruptcy

Less than three weeks after the 60 year old Siena Hotel and Casino receives a temporary stay from gaming regulators, the iconic Reno casino is forced into Bankruptcy protection to avoid an immediate termination of its license.

Late Wednesday the Siena filed for Bankruptcy on the eve of a deadline imposed by regulators to have $153,000 in back tax obligations paid. Now the fate of the casino lies in the hands of a bankruptcy judge and the Nevada Gaming Control Board.

Barney Ng, the owner of the struggling resort said earlier this month that he hoped to reach a management deal with Club Cal Neva to take over casino operations and infuse enough money into the property to avoid the filing.

Under state law, a gaming property can be shut down for falling three months behind in tax obligations to the state, but that is only one issue threatening the casino. It has been a tough year for the Siena who received a notice of default in December and faces possible foreclosure from its lender. In June the casino laid off 35 employees and closed table game operations.

This is the first time in Reno history that a casino has come before regulators without enough money in the cage to pay potential gambling winnings and after Ng invested approximately $100 million in both loans and his own capital has had to seek bankruptcy as a means to keep the property open and maintain the value.

“The population is getting smaller. Each day is trying” Ng commented. “Obviously, if the property closes, it will severely impact the perceived value of the property.”