The Chula Vista City Council went all in on the Stones South Bay Corp.
The five-member City Council last week approved an amendment to the gaming plan and unanimously approved the transfer of ownership and gambling license for Seven Mile Casino from VC Cardroom Inc. to the Stones South Bay Corp.
VC Cardroom was managed by Harvey Souza, whose family had the only two gambling licenses in Chula Vista since 1963. Souza, one of 25 defendants in an illegal gambling and money laundering operation, was indicted in 2015 on one count of failing to implement policies and procedures to maintain an anti-money laundering program that complied with federal regulations.
Souza’s indictment has placed his gambling license in jeopardy, but the transfer of ownership to the Stones South Bay Corp. keeps the casino operational.
The Stones South Bay Corp. is made up of Rodney Stone, Ryan Stone, Masis Kevorkian and Kermit Schultz who are familiar with gambling establishments. The group owns the Stones Gambling Hall in Citrus Heights.
The California Gaming Commission unanimously approved a temporary state gambling license to the Stones Corp. and approved the ownership transfer of the Seven Mile Casino from VC Cardroom Inc. to the Stones Corp. on March 23. The city’s approval last week was the last phase of the process before Stones took full ownership of Seven Mile Casino.
The ownership change was effective immediately.
As new owners the Stones Corp. vowed to be contributing community members, and use the card room to develop a first-rate gaming and entertainment destination.
“Stones Group is proud that we have been granted state and local approval for the purchase of Seven Mile Casino, affirming our commitment to becoming industry leaders and elevating the card room industry,” Ryan Stone said in a statement. “Our mission is to create a first-class entertainment destination in Chula Vista that will stand as a source of pride for the city, our customers, and our employees.”
Chula Vista Councilman Steve Padilla admits that he is not a fan of using a gambling hall as a signature piece for the bayfront, but he said he was excited with the Stones’ track record with their Citrus Heights location.
“I’ve been impressed,” he said. “I’ve never been a huge fan of large-scaled gaming or using card rooms as a way to brand Chula Vista to the rest of the community. But in the case of the Stones’ group I’ve been impressed with what they’re doing.”
