The Rise and Fall of Terrance Watanabe: How He Lost $204 Million in One Year (2024)

Terrance Watanabe was once a successful entrepreneur who inherited and expanded a multimillion-dollar party supply business. But his life took a dramatic turn when he became addicted to gambling and squandered most of his wealth at the casinos of Las Vegas. This is the story of how he rose to fame and fortune, and how he fell into debt and disgrace.

From Party Favors to Philanthropy

Terrance Watanabe was born in 1957 in Nebraska, where his father Harry Watanabe founded Oriental Trading Company, a direct merchant of value-priced party supplies, arts and crafts, toys and novelties, and school supplies. Harry was a Japanese immigrant who started as a gift shop owner in Omaha, and later expanded to multiple shops across the Midwest.

In 1977, when Terrance was 20 years old, he took over as president and part owner of Oriental Trading Company, after his father suffered a stroke. Terrance Watanabe shifted the focus from carnivals to supplying party goods for churches, schools, retailers, and individuals. He also invested in technology and marketing, making the company one of the first to use toll-free numbers and online catalogs.

Under his leadership, Oriental Trading Company grew from a $12 million business to a $300 million one, becoming one of the largest direct marketers in the United States. In 2000, Watanabe sold his entire stake in the company to Brentwood Associates, a Los Angeles-based private equity firm, for an undisclosed amount. He resigned as CEO and president.

Terrance Watanabe donated millions of dollars to various causes, such as education, health care, arts and culture, and animal welfare. He also established the Watanabe Family Foundation, which supported organizations such as the Omaha Children’s Museum, the Nebraska Humane Society, the Joslyn Art Museum, and the University of Nebraska Medical Center.

Terrance Watanabe: From Philanthropy to Gambling

After selling his company, Watanabe became notorious for his extreme gambling habits. He moved to Las Vegas in 2001, where he became a regular at several casinos, especially those owned by Harrah’s Entertainment (now Caesars Entertainment). He was known to gamble 24 hours a day. This personality used to play three $50,000 hands of blackjack simultaneously. He end up losing up to $5 million every day.

Terrance Watanabe’s gambling addiction reached its peak in 2007, when he reportedly lost $127 million at Caesar’s Palace and The Rio in Las Vegas, after having gambled a total of $825 million. He was banned from Wynn Las Vegas for compulsive gambling. Watanabe is estimated to have lost approximately $204 million in one year alone, giving him one of the biggest losing streaks in Las Vegas history.

He claimed that he was lured into gambling by the casinos, who offered him lavish perks and incentives, such as tickets to the Rolling Stones concerts, $12,500 a month for airfare. Terrance Watanabe also alleged that he was given alcohol and drugs by the casino staff to impair his judgment and keep him gambling.

The casinos denied these allegations and filed criminal charges of fraud and theft against Watanabe for failing to pay back $14.7 million in markers (casino loans). They accused him of using marijuana and cocaine and making sexual advances toward employees. They also argued that he was fully aware of his actions and signed documents acknowledging his debts.

In July 2010, a settlement was reached. It was declared between Harrah’s Entertainment and Watanabe Both the civil and criminal cases were dismissed as a result. However, the terms of the settlement were not disclosed.

The Aftermath

Terrance Watanabe’s gambling spree had a devastating impact on his personal life and finances. He lost most of his fortune that he had built over decades of hard work and innovation. He also lost his reputation as a respected businessman and philanthropist. Terrance Watanabe became estranged from his family and friends who tried to help him overcome his addiction.

Watanabe has since moved out of Las Vegas and lives in a modest apartment in California. He has sought treatment for his gambling problem and has vowed never to gamble again. He has also resumed his charitable activities through his foundation.

Terrance Watanabe’s story is a cautionary tale of how gambling can ruin lives and fortunes. It also raises questions about the ethical responsibilities of the casinos and the regulators in dealing with problem gamblers. Watanabe’s case is not unique, as there are many other high rollers who have lost millions of dollars at the casinos, some of whom have committed suicide or gone bankrupt.

His story is also a reminder of the human cost of gambling addiction, which affects not only the gamblers themselves, but also their families, friends, and communities. Gambling addiction is a serious mental health disorder that requires professional help and support. It is not a matter of luck or skill, but a disease that can be treated and prevented.