Did gaming regulators let Jimmy Buffett cruise through the licensing process?

Singer Jimmy Buffett, center, laughs as Michael Utley (not pictured), keyboardist for the Coral Reefer Band, answers questions during a Gaming Control Board hearing at the Sawyer State Building Wednesday, March 7, 2012. With Buffett are attorney Jeffrey Smith, left, and John Cohlan of Margaritaville Holdings.

Richard N. Velotta

Richard N. Velotta

Jimmy Buffett's Margaritaville Gaming License Approved

Jimmy Buffett goes before the Nevada Gaming Commission for approval of his Margaritaville gaming license inside the Grant Sawyer Building in downtown Las Vegas on Thursday, March 22, 2012. Launch slideshow »

Margaritaville Casino

Cocktail servers Laura Parisi, from left, Kitty Carangelo, Rachel Gries, Julie Bladow and Brandy Gates train for their jobs at the Margaritaville casino inside the Flamingo on Friday, Sept. 30, 2011. Launch slideshow »

Jimmy Buffett Celebrates Margaritaville, World's Largest Margarita

Jimmy Buffett celebrates his new Margaritaville Casino and the World's Largest Margarita at the Flamingo on Oct. 14, 2011. Launch slideshow »

VEGAS INC coverage

When popular entertainer Jimmy Buffett received his Nevada gaming license last month, a number of skeptics immediately jumped to the conclusion that star-struck gaming regulators allowed him to skate through the process unchecked.

While it’s understandable that some believe celebrities get a free pass, the state Gaming Control Board and the Nevada Gaming Commission investigated the singer with the same scrutiny it gives all licensing applicants. Maybe more.

It seems that Buffett not only is a success with his sold-out concert tours and music sales, but he’s also a savvy entrepreneur. He displayed his acumen with his successful pursuit of his state license, which will allow him to get a cut of gaming revenue at his Margaritaville Casino and Restaurant at the Flamingo, as opposed to profits only on food, beverages and merchandise sold at the establishment.

He’s creative, selling best-selling books as well as songs, and is book smart as well as street smart. Most of his executives have college degrees.

One gaming commissioner told me that Buffett was one of the most astute businessmen he had ever encountered and it was reflected in the thorough documentation he was required to file. The commissioner said investigators pored over the documents before Buffett stood before regulators for questioning.

There was no question that a celebrity was in the house when Buffett attended the Gaming Control Board meeting on March 7 and the Nevada Gaming Commission session on March 22. The meeting had the same kind of feel as when Kirk Kerkorian and Steve Wynn have made appearances.

The Buffett visits were a little different, because the singer’s fun-loving stage persona shined through the business shrewdness.

Control Board Chairman Mark Lipparelli, who has a droll sense of humor, broke some initial tension when Buffett approached the podium by acknowledging his legal team and noting that Buffett had “fins to the left, fins to the right” — a reference to the lyrics of one of Buffett’s popular ballads.

Buffett’s legion of fans — known as “Parrotheads” because they often wear gear printed with birds and tropical flora reminiscent of the sun-soaked setting of Buffett’s musical vibe — are familiar with the singer’s repertoire and his references to Caribbean lore. But some of his music regales pirating and drug-smuggling.

Lipparelli’s colleagues asked Buffett about two high-profile incidents a decade apart in which he had brushes with police authorities.

In 1996, Buffett, who holds a pilot’s license, was flying a type of seaplane often favored by drug smugglers. A Jamaican SWAT shot at and hit the plane.

Buffett was an open book with regulators, describing details of the incident for both board members and commissioners at their respective meetings. Buffett has been open about it with fans, too — check out the lyrics to the song “Jamaica Mistaica,” in which he recalls the incident to music.

Board members Shawn Reid and A.G. Burnett were even more pointed in their questioning of Buffett about being detained by French customs authorities who believed he was carrying Ecstasy. Buffett took a public-relations hit in that incident because he paid a fine. He told gaming regulators he did that because it was more financially viable for him to pay the fine than to be detained for a lengthy period. In short, it was a business decision.

The Control Board warns applicants that they could be publicly humiliated during the licensing process: “An applicant must accept any risk of adverse public notice, embarrassment, criticism, financial loss or other action which may result from action with respect to an application and expressly waives any claim for damages as a result thereof.” In other words, you can’t sue the state after they beat you up.

I’ve seen applicants scorched by regulators who have questioned inconsistencies between the application and investigators’ findings or instances in which an applicant leaves out important details in their record, like a bankruptcy filing, an IRS inquiry or a drug possession arrest.

Commissioners also questioned Buffett about how he protects intellectual property, and the singer said he spends millions of dollars a year in legal fees to protect his brands.

In the end, regulators were happy with Buffett’s clean record and were satisfied with the details of the questionable encounters. They did their jobs and didn’t give a celebrity a pass.

Buffett was clearly pleased with the outcome. He said he’d had dreams about bringing a seaplane concession to Southern Nevada, and it made me wonder if an amphibious aircraft has ever landed at Lake Mead.

“I hope that if you ever write a song about this experience (of being licensed) that it will be positive,” Commissioner Tony Alamo told the singer.

You could see the creative juices already flowing in Buffett’s eyes.

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