John Gaughan figured he was destined for the family business.
When he came home from the University of Nebraska in 1988, a management position with his father Michael Gaughan's airport slot machine operations was on the agenda. It seemed like a good way to learn the casino business.
At the time, John Gaughan's grandfather, Jackie Gaughan, was the casino king of downtown Las Vegas. Michael Gaughan owned and operated the Barbary Coast and Gold Coast, which were the beginnings of the Coast Casinos empire.
Before moving into the airport slots, Michael Gaughan came up with another plan for his son. An opportunity to open a company in the horse race dissemination business presented itself. John Gaughan decided to the give the industry a try, although he didn't have experience with either disseminating horse race information or the racing industry in general.
Twenty-two years later, Las Vegas Dissemination Co. is the industry leader for pari-mutuel wagering and racetrack simulcasting.
From a stylish office park on the southwestern edge of the valley, the company operates a high-tech facility that runs the gaming industry's only full-service race information and off-track wagering hub, providing real-time betting odds and information to Nevada racebooks from hundreds of North American tracks.
"Like any son, I wanted to please my father," Gaughan said. "I could have made more money from slots but I took the hard route."
In 22 years, Gaughan has branched out.
In addition to Nevada, Las Vegas Dissemination provides racing information and pari-mutuel services to casinos in the Bahamas, Connecticut, New Mexico, Iowa and Oklahoma.
Through Gaughan Gaming, which he operates with his brother, Michael Gaughan Jr., the company manages two American Indian casinos in Oklahoma.
His friendship with brothers Trent and Matt Othick led to the formation of GO Productions, which produced the movie "Yonkers Joe."
GO also produced the Broadway play, "A Bronx Tale," which was written by and stars Chazz Palminteri. The one-man show begins a 12-night return engagement at The Venetian on Wednesday. The production earned Gaughan the title of Broadway producer.
Question: What has been the key to Las Vegas Dissemination's longevity?
Answer: We've been loyal to the casinos and they have been loyal to us. I think it's relationships, service and pricing. We haven't raised our prices in 13 years. We look at ourselves as being partners with the industry through good, long-term relationships. Confidentiality is important. We know player information but the casinos trust us. Our relationships are good enough with the casinos where they allow us to wire transfer money in and out of accounts. We've been through billions of dollars worth of audits and down to the penny, there has never been a discrepancy. We also have long-standing employees. Some have been with us almost since the beginning.
Question: How did Las Vegas Dissemination Co. bring pari-mutuel wagering into Nevada?
Answer: We had the backing of Caesars Palace. I was a kid, but I was smart enough to know that if Caesars Palace wanted this thing and was going to drive it, the idea was going to work. Pari-mutuel wagering is like being at the betting window at the track. The risk is low.
We pretty much gave it to the industry for free to show it would work. In our first month in 1991, we ran $3.5 million to $4 million in bets through the system. Last year, the system handled $1.2 billion in wagers. Las Vegas Dissemination earns a percentage of the handle.
Question: How has the business changed in two decades?
Answer: Horse racing grew and we've been able to move into other states. We walked the halls in the Connecticut Legislature to get the law passed to allow us to hook up Foxwoods. We've gone into other Native American markets. We were able to grow the company by being very aggressive. I made a lot of mistakes, but I also made a lot of good decisions. Sometimes when you go for it, you hit a brick wall. That happens. Being passive doesn't work.
Question: What have you learned from your family?
Answer: I'm proud of my dad for multiple things. He was the only casino company operator who didn't lay anyone off after (the terrorist attacks of Sept. 11, 2001). He hasn't laid anyone off during this tough economy. He takes care of his people because they are the backbone of the company. I did have to lay some people off during the tough times and it absolutely broke my heart.
My grandfather taught me to be fiscally responsible. Debt is the killer of everything. One of Jackie Gaughan's famous quotes is, "The more money you owe, the heavier the covers are in the morning when you get out of bed."
Question: Are you and your brother seeking other casino opportunities?
Answer: When the economy gets better, we think some things will come our way. Nothing spectacular, just some small, midlevel places where we can work together and have some fun.
Question: What did your father think about you getting into the entertainment business?
Answer: I don't think he was too high on it at first. He's seen too many people hurt in the industry. Trent (Othick) is the brains behind the business. I just provided some financial backing.
"A Bronx Tale" had a successful 18-week run on Broadway. Despite the first strike in Broadway history, we made money.
The show had a great run in Las Vegas (last October) and we're happy it's coming back (Wednesday through May 9 at The Venetian). Dad saw "A Bronx Tale" twice, in San Francisco and at The Venetian. He liked it.
I'm not a Broadway guy. I'm just a fortunate businessman.
Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871.
VITAL STATISTICS
Name: John Gaughan
Age: 44
Quotable: "We were able to grow the company by being very aggressive. I made a lot of mistakes, but I also made a lot of good decisions. Sometimes when you go for it, you hit a brick wall. That happens. Being passive doesn't work."
Position: President and chief executive officer of Las Vegas Dissemination Co.
Family: Wife, Barbara; daughter, Gwenyth; son, John III
Education: University of Nebraska, Lincoln; Bachelor of Science in business administration, 1989
Work history: Founded Las Vegas Dissemination Company in 1988.
Hobbies: University of Nebraska Cornhuskers football, baseball and football with his son
Favorite books: "Point of Impact" by Stephen Hunter and "Kane and Abel" by Jeffrey Archer
Hometown: Born in Santa Monica, Calif., but considers Las Vegas his hometown.
Las Vegas Dissemination Co.
is at 8924 Spanish Ridge Ave. and
can be reached at 739-8781.
