Nevada Gaming Commission denies license to Rio parent company CFO after split vote

The Nevada Gaming Commission on Thursday voted 3–2 to deny a state gaming license to Dreamscape Companies President and Chief Financial Officer John Eder, reversing a prior recommendation from regulators and placing his gaming career in doubt.

Two weeks earlier, the Nevada Gaming Control Board had unanimously supported granting Eder a conditioned license, which would have required him to return for review in two years. But after a lengthy hearing, the commission opted against approval, adding his name to a list of 149 denials, revocations, and findings of unsuitability recorded since 1980.

Licensed casino operators are prohibited from employing or conducting business with individuals who have been denied by the commission.

Eder’s attorney, Frank Schreck, said in an email to the Las Vegas Review-Journal on Monday that there is no formal appeal process available following the commission’s decision. “Mr. Eder and Dreamscape are currently evaluating their options,” Schreck wrote.

Eder was one of three Dreamscape executives under review for licensing as part of the company’s operation of the off-Strip Rio Hotel & Casino. The other two executives, Patrick Miller, president and chief executive officer of the Rio, and Christopher Balaban, the property’s chief financial officer, were both approved unanimously by commissioners in separate votes.

During the proceedings, commissioners scrutinized Eder’s past employment with Seminole Gaming and its Hard Rock Hotel enterprise, where he had spent two decades and risen to the position of chief financial officer before being dismissed three years ago. 

While the Gaming Control Board cited state law in denying the Review-Journal access to its investigative report, the public hearing revealed details of Eder’s termination. Eder told commissioners that he was fired after accepting a European trip from an insurance vendor he described as a personal friend.

Commissioner Abbi Silver, a former Nevada Supreme Court justice, cited state law in explaining her decision to oppose the license. “I don’t doubt that you’re remorseful, but obviously under NRS 463.170, an application must not be granted unless the commission is satisfied that the applicant is ‘a person of good character, honesty and integrity,’” she said. 

“You were CFO of a company where you breached your fiduciary duties and lied to your president. And within three years, you’re before us now wanting to get back into gaming. I have grave concerns about you being a person of good character, honesty, and integrity.”

“I spent 20 years working my way up to CFO of Seminole Gaming,” Eder said during testimony. “Never had a blemish on my record. I know I made a serious error in accepting the gifts, compounded with lack of judgment and being untruthful about the repayment.”

He said the trip included airfare, train tickets, and stays in a luxury hotel, and admitted that he initially misrepresented to his employer that he had reimbursed the cost. Eder told commissioners he deeply regretted “making a bad decision” and acknowledged the personal and professional consequences.

“I’m angry with myself for these bad decisions,” he said. “And I pay for these actions of termination of my employment. I lost my job. I lost money. I lost the opportunity to continue to work with the tribe. And these aren’t small items.”

The commission briefly considered referring the matter back to the Control Board or allowing Eder to withdraw his application, but ultimately proceeded to a vote.