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Gambler Who Lost Millions ($127 Million at Harrah's) Wants Some Debt Forgiven
Sphere ^ | December 8, 2009 | Richard C. Paddock

Posted on 12/09/2009 6:18:29 PM PST by DogByte6RER

Gambler Who Lost Millions Wants Some Debt Forgiven

SAN FRANCISCO (Dec. 8) -- Terrance Watanabe sometimes got so high on painkillers and alcohol in Las Vegas that he walked into doors and passed out at the gaming tables.

The Omaha philanthropist consumed more than two bottles of expensive vodka daily and gambled for days at a time without sleeping. In a single year, he lost $127 million at two casinos owned by Harrah's Entertainment. Nearly $1 billion in wagers passed through his hands.

This embarrassing portrait of excess and dissipation comes from legal documents filed by Watanabe's own attorneys, who are defending him against criminal charges that he still owes Harrah's nearly $15 million from his gambling spree.

Watanabe's lawyers cast the once wealthy businessman as the victim of heartless executives who enticed him to their casinos with offers of lavish rewards, then plied him with massive quantities of alcohol and drugs to keep him under control as they milked him of his fortune

From Harrah's perspective, Watanabe is a deadbeat gambler who faces four felonies and is telling his story publicly in a desperate attempt to avoid jail.

A civil lawsuit and a complaint to the Nevada Gaming Control Board filed last month by Watanabe's lawyers allege that Harrah's kept him a virtual "captive" at the Caesars and Rio casinos in 2007 and supplied him with the prescription painkiller Lortab without a doctor's diagnosis or supervision.

"They preyed on a vulnerable person who had a gambling and alcohol addiction," said Pierce O'Donnell, one of his attorneys. "Terry Watanabe takes responsibility for what he did, and Harrah's needs to take responsibility for what they did."

Watanabe, 52, is the former head of the Oriental Trading Co., a direct marketing firm that sells novelties and party items. In Omaha, he is known for donating money to AIDS patients, military families and the police department. He now lives in the San Francisco Bay Area. He declined through his attorneys to be interviewed.

Watanabe sold his interest in the family company in 2000 and by 2006 was gambling heavily in Las Vegas. In the parlance of the Strip, he was a "whale," a high-roller whose huge losses can be a casino's biggest source of revenue. Casinos vie with each other to entice whales to their tables, offering opulent rooms, private jets, gourmet meals, exclusive show tickets and all manner of other inducements.

Watanabe was one of the biggest whales to come along.

For a time he played at the Wynn casino, where he ran up losses of $26 million by June 2007. Owner Steve Wynn personally cut him off from further play, citing his apparent gambling and alcohol addictions, according to the complaint to the gaming board. A spokeswoman for Wynn said the casino had no comment.

Watanabe soon took up residence at Harrah's properties, first the Rio and then Caesars, under an agreement that offered him 20 separate incentives, including a free luxury suite, an airfare allowance, discounts on his losses, private gaming areas, and deferred marker payments of at least 60 days, the complaint says.

The dispute over how much Watanabe owes Harrah's centers on that agreement, which was recorded in a series of e-mails between Watanabe's assistant and a Harrah's executive, his attorneys say.

On its Web site, Harrah's calls itself a leader in responsible gaming and says it trains its employees to recognize problem gamblers.

"Our company's long-standing and continuing commitment to responsible gaming is something we take great pride in," the Web site says. "Harrah's position on this issue is clear: We want everyone who gambles at our casinos to be there for the right reasons: to simply have fun."

But in Watanabe's case, his attorneys say, the casino staff played a different role.

The complaint alleges that Harrah's assigned employees to watch over Watanabe and ensure that he continued gambling at its properties.

During a six-month period in 2007, employees continually plied him with drinks, ignoring several requests from an acquaintance to water down his vodka, the complaint says. Photos of Watanabe were posted in staff areas so employees would know he should not be denied anything he wanted, his lawyers allege. At the height of his binge, witnesses say he consumed two to three bottles a day of his favorite brand, Jewel of Russia, according to court documents.

If Watanabe was absent from the casino floor for a time, his handlers would call or visit his hotel room and steer him back to the casino floor, the complaint alleges.

Staff members who objected to the way the casino was treating Watanabe were reassigned or dismissed, according to the complaint.

His attorneys say that Harrah's carefully managed a daily routine for Watanabe that included alcohol and drugs, inadequate sleep and pressure to continue gambling. As his intoxication grew worse, his losses increased.

His condition began deteriorating markedly in September 2007 after he slipped on the marble floor in his suite and injured his back. He asked for aspirin or Tylenol, his attorneys say.

Instead of calling a doctor, casino employees began giving him Lortab, a prescription narcotic that should not be mixed with alcohol, the complaint says. Casino staff continually supplied him with the drug, it says, on one occasion delivering the pills to his room in a candy box.

Witnesses say Watanabe became so intoxicated that he slurred his speech, walked into obstacles and at times passed out while playing, according to the complaint. "Rather than taking him to his room, a staff member would wake him up to continue gambling or to sign a marker," O'Donnell said in the complaint.

There is no indication from the documents that close friends or family members spent time with Watanabe in Las Vegas until he had lost much of his fortune.

Watanabe's spree came to an end in December 2007 after his sister visited and persuaded him to leave Las Vegas.

By that time, he had given Harrah's $112 million. But he balked at paying $14.75 million more in markers, contending that the debt was offset by promised discounts and other incentives that Harrah's never delivered.

After Watanabe hired an attorney to help him negotiate, Harrah's submitted the markers to his bank for payment. When the markers were returned because of insufficient funds, Harrah's asked the district attorney to prosecute the man who had been their best customer.

In February, Watanabe turned himself in to face four felony counts of theft and fraud.

Under a unique Nevada law, Harrah's turned over the markers to Clark County District Attorney David Roger for criminal prosecution.

The company is seeking the money despite the $112 million it has already taken from Watanabe -- a sum so large it constituted almost 6 percent of casino revenues for the entire Harrah's chain in 2007, the complaint says.

The prosecutor's Bad Check Unit alleges that the markers Watanabe signed are the equivalent of checks that must be paid on demand. Watanabe's lawyers contend that the markers represent loans, not checks, and therefore should not be subject to the bad check law.

The Bad Check Unit has handled cases involving the markers of several prominent gamblers, including the recent $900,000 debt of former NBA star Antoine Walker. But the $14.75 million at issue in the Watanabe case is the largest sum the unit has sought to recover.

Under the law, the district attorney's office will receive a 10 percent commission on any amount it collects from Watanabe. O'Donnell, a prominent Los Angeles trial lawyer, questions whether such an arrangement is constitutional.

"The statutory scheme in Nevada creates an unholy alliance between private gambling companies and the public prosecutor," he said in an interview. "There is no other industry and no other state where this happens. To give a bounty to the district attorney for collecting private debts is extraordinary."

Deputy District Attorney Bernie Zadrowski, who supervises the Bad Check Unit, did not return telephone calls from Sphere.

Jan Jones, Harrah's senior vice president for communications and government relations, issued a brief statement saying the company has no intention of asking the district attorney to drop the case.

Jones said Watanabe's lawsuit and his complaint to the gaming board contain "false statements" but did not specify what she considers untrue. Jones and other Harrah's representatives declined to answer any questions about the case.

"We will not get into a public debate with a criminal defendant who is trying to avoid imprisonment," Jones said in her statement. "He is the one on trial; he's the one who needs to explain his actions."

Watanabe's civil lawsuit does not specify the amount of damages it is seeking. In the complaint to the gaming board, O'Donnell calls for an investigation of Harrah's and the possible suspension of the two casinos' licenses.

"Mr. Watanabe is the victim of a ruthless corporation that deserves the harshest sanctions for its unlawful conduct," he wrote. "Indeed, the evidence is overwhelming that Caesars reprehensibly behaved like a predator stalking, trapping and consuming its prey."


TOPICS: Business/Economy; Crime/Corruption; Culture/Society; US: Nevada
KEYWORDS: addiction; fool; gambling; gaming; loser; vegas
"A fool and his money are soon parted."
1 posted on 12/09/2009 6:18:31 PM PST by DogByte6RER
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To: DogByte6RER
In Omaha, he is known for donating money to AIDS patients, military families and the police department.

His donations could have been $127B greater!
2 posted on 12/09/2009 6:20:20 PM PST by Red in Blue PA (Obama, Hitler, Stalin: Who are 3 people nominated for the Nobel Peace Prize.)
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To: DogByte6RER

Harrah’s forgives him.


3 posted on 12/09/2009 6:20:47 PM PST by Minutemen ("It's a Religion of Peace")
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To: DogByte6RER

The bailout mentality is everywhere.


4 posted on 12/09/2009 6:20:54 PM PST by Lets Roll NOW
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To: DogByte6RER

Whales. I never heard the term before, now everybody is talking about whales.


5 posted on 12/09/2009 6:21:57 PM PST by fhayek (Pointed sarcasm)
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To: Lets Roll NOW
I believe you ought to be able to do what you want with your own money. If you want to burn it in the yard. Go for it.

But no bailouts, and no court sympathy. You did it.
6 posted on 12/09/2009 6:23:53 PM PST by Arkinsaw
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To: DogByte6RER

yup, and another way to put that is , “some people have more money than brains”


7 posted on 12/09/2009 6:24:02 PM PST by WhatNot ( Healthcare Bill-the other man-made object large enough to be seen from outer-space.)
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To: DogByte6RER
Nearly $1 billion in wagers passed through his hands.

What an incredible ride that must have been.

8 posted on 12/09/2009 6:25:23 PM PST by ansel12 (They don't come any slimier than Romney, (in the Republican party))
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To: ansel12

And what does he have to show for it?
Sometimes having that much money can be a curse. However, it is a curse most of us would like to endure.


9 posted on 12/09/2009 6:27:26 PM PST by Yorlik803 (better to die on your feet than live on your knees.)
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To: DogByte6RER
Here's the once rich idiot who judging by the caption has some serious problems.


Terrance "Terry" Watanabe, right, his attorneys, David Chesnoff, background center, and Richard Schonfeld appear in court at the Clark County Regional Justice Center in Las Vegas, Wednesday, Feb. 18, 2009. The prominent Nebraska philanthropist, facing felony theft and bad check charges for nearly $15 million in debts with two Las Vegas casinos, has surrendered himself to authorities and posted $1.5 million bail.
10 posted on 12/09/2009 6:32:19 PM PST by SpaceBar
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To: DogByte6RER
Owner Steve Wynn personally cut him off from further play, citing his apparent gambling and alcohol addictions, according to the complaint to the gaming board. A spokeswoman for Wynn said the casino had no comment.

If true, this is a smoking gun - Harrah's will get dinged big time.

Second, there are video cameras everywhere in Vegas; Harrah's will face subpoenas for every piece of video they have, or should have kept, of Watanabe.

Provided him a prescription drug - yes I believe that could have occurred.

11 posted on 12/09/2009 6:32:49 PM PST by ikka
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To: Yorlik803

Well, he cured himself of the curse. Next up, “would u like fries with that?”


12 posted on 12/09/2009 6:33:39 PM PST by Gapplega
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To: DogByte6RER
Under the law, the district attorney's office will receive a 10 percent commission on any amount it collects from Watanabe.

The DA is nothing but a common thug.

13 posted on 12/09/2009 6:34:17 PM PST by an amused spectator (The money vampires fear garlands of lead & brass)
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To: DogByte6RER

In California I voted against first the state lottery, and then allowing Indian gaming casinos all across the state precisely because of the problems associated with people becoming “hooked” by gambling. A friend of ours, while managing a Forest Service camp grounds and Marina at our favorite lake got caught up in gambling at a casino in Northern CA during the winter months. She became “hooked” on going to the casino, and increased her visits to include during the open season for the lake. At first she only used her money. But, as she became more in debt, she then started taking cash receipts from the campgrounds. By the time it all crashed down upon her she had embezzled more than 50 thousand from the campgrounds. This was over a period of just over a year’s time. Yes, she was arrested. She entered a plea to avoid a lengthy prison sentence, but did spend time in prison. Her future as far as a career of any significance is probably done. It was a sad situation as she was a very hard working person who took her responsibilities seriously before this episode.


14 posted on 12/09/2009 6:44:45 PM PST by SoldierDad (Proud Dad of a U.S. Army Infantry Soldier whose wife is expecting twins SONS.)
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To: DogByte6RER
known for donating money to AIDS patients... He now lives in the San Francisco Bay Area.

From this, is it safe to assume that he's probably not married to a woman?

15 posted on 12/09/2009 7:39:21 PM PST by PAR35
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To: fhayek

Save the Whales !


16 posted on 12/09/2009 7:40:31 PM PST by DontTreadOnMe2009 (So stop treading on me already!)
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To: DogByte6RER
Gambler Who Lost Millions ($127 Million at Harrah's) Wants Some Debt Forgiven

And of course, had he won 127 million, he'd have given some of it back to the casino, right? Sure.

What a dumb-a**. Risk what you are willing to lose. You lost, big.

17 posted on 12/09/2009 7:42:20 PM PST by ThunderSleeps (obama out now! I'll keep my money, my guns, and my freedom - you can keep the change.)
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To: SoldierDad
Nobody but the woman you mentioned is responsible for her stupid behavior. It wasn't the casino's or anyone else's fault. Almost everything can be abused but most people have the will power to resist that. Food is probably the most abused thing in the country considering how many morbidly obese people there are here. That doesn't mean we need to regulate a persons food intake.
18 posted on 12/09/2009 8:20:54 PM PST by ThermoNuclearWarrior (Obama is a fraud and is ineligible for the Presidency!)
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To: DogByte6RER
“The Omaha philanthropist consumed more than two bottles of expensive vodka daily and gambled for days at a time without sleeping.”

It's impossible that he was drinking that much alcohol and staying up for days without sleep unless he was also taking some type of speed.

19 posted on 12/09/2009 8:24:41 PM PST by ThermoNuclearWarrior (Obama is a fraud and is ineligible for the Presidency!)
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To: DogByte6RER

Maybe Harrahs should brake one of his legs and force him to be a “Cooler” just like in the movie “The Cooler”.


20 posted on 12/09/2009 8:51:05 PM PST by willk
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To: DogByte6RER

Maybe Harrahs should brake one of his legs and force him to be a “Cooler” just like in the movie “The Cooler”.


21 posted on 12/09/2009 8:51:11 PM PST by willk
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To: DogByte6RER

In California I voted against first the state lottery, and then allowing Indian gaming casinos all across the state precisely because of the problems associated with people becoming “hooked” by gambling. A friend of ours, while managing a Forest Service camp grounds and Marina at our favorite lake got caught up in gambling at a casino in Northern CA during the winter months. She became “hooked” on going to the casino, and increased her visits to include during the open season for the lake. At first she only used her money. But, as she became more in debt, she then started taking cash receipts from the campgrounds. By the time it all crashed down upon her she had embezzled more than 50 thousand from the campgrounds. This was over a period of just over a year’s time. Yes, she was arrested. She entered a plea to avoid a lengthy prison sentence, but did spend time in prison. Her future as far as a career of any significance is probably done. It was a sad situation as she was a very hard working person who took her responsibilities seriously before this episode.


22 posted on 12/09/2009 9:03:35 PM PST by SoldierDad (Proud Dad of a U.S. Army Infantry Soldier whose wife is expecting twins SONS.)
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To: DogByte6RER

Oops. My computer’s doing strange things tonight.


23 posted on 12/09/2009 9:06:37 PM PST by SoldierDad (Proud Dad of a U.S. Army Infantry Soldier whose wife is expecting twins SONS.)
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To: DogByte6RER
POTUS muzzie Hussein makes this guy look like a piker.

The commie in chief and his comrades have stolen trillions in the last 10 months and he's jetting to Europe to accept the Noble Peace Prize!

24 posted on 12/09/2009 9:07:46 PM PST by Rome2000 (OBAMA IS A COMMUNIST CRYPTO-MUSLIM)
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To: SoldierDad

Lets bring back prohibition and branding adulteresses with a scarlet letter while were at it.


25 posted on 12/09/2009 9:10:03 PM PST by Rome2000 (OBAMA IS A COMMUNIST CRYPTO-MUSLIM)
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To: DogByte6RER

Dude...stick to buying lotto tickets. And at 2 bottles of vodka a day, gambling is the least of your worries.


26 posted on 12/09/2009 9:11:00 PM PST by Drango (A liberal's compassion is limited only by the size of someone else's wallet.)
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To: DogByte6RER
I quit gambling, although I usually won. I played poker. I only played with people who were drinking when I wasn't.

I felt guilty taking their money. I mean, a guy gets enough booze in him and he's raising on the third round with two pair. I've spent maybe twenty bucks on lottery tickets over the last ten years. It kind of freaks me out to see people in the stores buying twenty dollar scratch off cards. I just don't have twenty bucks to throw away.

Stuff like craps, roulette, or slot machines never interested me, at all. I don't believe in the tooth fairy, and I don't believe Vegas keeps all those lights on by giving money away. I love a good poker game, but it's not really poker unless you won't be able to pay the rent if you lose. Small stakes poker is just "Who's got the best hand?"

Since I'm married, have kids, and stuff, I can't take those kinds of chances with my money, though, so my poker days are over.

27 posted on 12/09/2009 9:16:10 PM PST by Richard Kimball (We're all criminals. They just haven't figured out what some of us have done yet.)
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To: DogByte6RER
For a time he played at the Wynn casino, where he ran up losses of $26 million by June 2007. Owner Steve Wynn personally cut him off from further play, citing his apparent gambling and alcohol addictions, according to the complaint to the gaming board. A spokeswoman for Wynn said the casino had no comment.

That's pretty classy for the owner. He walked away from $100 million.

On its Web site, Harrah's calls itself a leader in responsible gaming and says it trains its employees to recognize problem gamblers.

I'll bet they do. Watanabe is a full grown adult, and should have been more intelligent in his choices. However, it's pretty sleazy for a casino to induce a problem gambler into more problems with alcohol, etc. Of course, Vegas wasn't founded by the Boy Scouts. It was founded by the mob, and they went legit when they found out it was easier and safer to fleece people legally.

28 posted on 12/09/2009 9:23:56 PM PST by Richard Kimball (We're all criminals. They just haven't figured out what some of us have done yet.)
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To: SpaceBar

Guilty!


29 posted on 12/09/2009 9:26:46 PM PST by moehoward
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To: Yorlik803

There’s a difference between responsibility and entrapment. $127M? Harrah’s needs a wake-up call.


30 posted on 12/10/2009 1:00:20 AM PST by Whiskeyjim (Friedman's fallacies)
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