LAS VEGAS, Nevada -- According to Japan's Jiji Press the new casino planned by

Steve Wynn on the site of the Desert Inn, could face regulatory problems if tax evasion

allegations against Wynn's financial partner, Japanese gaming equipment maker Aruze

Corporation, are true. As Wynn's financial partner, Aruze would have to be licensed by

Nevada regulators as a casino operator when a new resort is built.

The Tokyo Regional Taxation Bureau has charged Aruze with intentionally concealing

about 4 billion yen ($35 million) in taxable income for three years to March 1999. In

November Aruze paid US$260 million for a 50% in Valvino Lamore, a company set up by

Wynn to develop the Desert Inn property.