The Nevada Gaming Control Board on Wednesday recommended the singer's holding company be approved for a gambling license, setting up a final hearing later this month.
Board members questioned Buffett for about 15 minutes and asked him about two incidents in which he was accused of having drugs.
Buffett said that when the Jamaican military mistook his plane for smuggling drugs in 1996, they fired 115 shots and hit twice. French customs officials detained him in 2006 and suspected he was carrying ecstasy, but Buffett said it was actually heart palpitation medication and he was released quickly.
The Margaritaville casino is at the Flamingo on the Las Vegas Strip.
