After taking his lumps from an investment in a company that
unsuccessfully attempted to install modified slot ÂÃ‚Âmachines in Mexico City, Las
Vegas entrepreneur Eric Nelson has reached out to a former Downtown Las Vegas
gaming guru for help.
Nelson, chairman and president of Phoenix Leisure ÂÃ‚ÂCorporation,
has arranged a $2 million loan from Jack ÂÃ‚ÂBinion, founder and CEO of Horseshoe
Gaming, a privately-held company that has gaming operations in Louisiana and ÂÃ‚ÂMississippi.
The agreement provides that the $2 million will be
converted to a term loan due March 29, 2003 with interest of 12%. Under certain
conditions, the loan may be extended for an additional year. The loan is secured
by a deed of trust against Phoenix Leisure’s Colorado land holdings and a
first preferred ship mortgage held on the company’s gaming ÂÃ‚Âvessel in
Nelson recently invested
in Viva Gaming & Resorts Inc. (VIGA) with the hope of developing lottery
entertainment centers in Mexico. Despite initial approvals, the company’s
first location in Mexico City was shut down by authorities.
Nelson, one of Las Vegas’ leading auctioneers and real ÂÃ‚Âestate developers, founded Phoenix Leisure to acquire and operate facilities such as four Cleopatra’s mini-casinos in Washington State, the Wyoming Downs horse racetrack with four off-track wagering facilities and other properties to be developed in Mississippi and Colorado.