Circus Circus Chairman-Elect Quits Suddenly

Circus Circus Enterprises Inc. said Tuesday that its chairman-elect unexpectedly quit, and the announcement contributed to a sharp drop in the stock price of the gambling-resort giant.

William G. Bennett, Circus Circus co-founder, told the Associated Press that it was his decision to delay his own retirement as chairman, coupled with some “pretty deep philosophical differences” that led to the resignation of Richard P. Banis, the president and chief operating officer.

The departure came just five months after Circus Circus announced that Banis would replace Bennett as chairman in early 1992.

“Yes, it’s very much so related to my decision to stay,” Bennett said. “Under those conditions, Mr. Banis decided he’d go elsewhere.”

Banis didn’t immediately return a telephone call for comment on his resignation.

The announcement caused a drop in the price of Circus Circus stock, which had been trading at near record levels. The stock fell $2 a share to $75.50 in heavy trading on the New York Stock Exchange.

Bennett said the drop was expected and predicted the resignation would have little long-term effect on the company’s fortunes.

“We figured there would be a drop,” Bennett said. “People just don’t like change. But I think what we’ve done is going to be a very strong change for the better. We’ve got an awful lot of depth in management.”

The 66-year-old Bennett announced in February that he planned to retire in about a year, capping a spectacular run with the company that he and William Pennington founded with the purchase in 1974 of the floundering Circus Circus hotel-casino on the Las Vegas Strip. Pennington is no longer active in the company.

Circus Circus, which operates hotel-casinos in Las Vegas, Reno and Laughlin, Nev., has been riding high the past year on the success of its new 4,000-room castle-themed Excalibur resort in Las Vegas.

Bennett said he had second thoughts about retirement, however, particularly at a time when the company is preparing to announce plans for another large theme resort.

“I don’t know that I’d enjoy retirement at all,” Bennett said. “I think I’ll be around awhile.”