The gambling industry has worked diligently to repackage itself as harmless, wholesome entertainment. One key component in this marketing strategy is the portrayal of gambling as a heavily regulated (and thus "clean") industry. However, the often-cozy relationship that exists between the gambling industry and gambling regulatory bodies calls into question the effectiveness of such oversight. In fact, a "revolving door" of sorts exists within the regulatory agencies; many regulators "cash in" on their experience by turning around and working for the industry they formerly regulated.
* August Masciotra was a state racing commission regulator in Nevada and Colorado before he took over as general manager of the Woodlands in Kansas. During his time as general manager, Masciotra and a business partner were charged with stealing more than $25,000 in track funds, although an ongoing investigation has uncovered evidence that over $180,000 were stolen through phony receipts and other fraudulent acts.1
* Michael Brown, former director of the New Jersey Division of Gaming Enforcement, later served as the CEO of the Foxwoods casino, reportedly the world's most profitable gambling establishment. Foxwoods has hired other former New Jersey casino regulators, including the past deputy director of gaming enforcement.2
* Stephen Perskie, former chair of the New Jersey Casino Control Commission, served as executive vice-president for Players International, a riverboat casino operator.3
* Bruce Nourse, former interim director of the Mississippi Gaming Commission, became a senior vice-president for Casino Magic.4
* The former chairman of the Louisiana Riverboat Gaming Commission, Ken Pickering, enlisted as a lobbyist for the Riverboat Casino Association of Louisiana.5
* Robert Sturges, president of the gaming division for Carnival Hotels and Casinos, formerly served as the New Jersey director of gaming enforcement.6
* Former Mississippi Gambling Commission Director Lorenzo Creighton became the general manager of a Vicksburg casino.7
* The top administrator of the Illinois Gaming Board is now an executive for a company that manages an Illinois riverboat casino. At least three other former Illinois Gaming Board employees, including the board's former chairman and a former chief legal counsel, have since represented gambling companies with interests in the state.8
* The agency which regulates Indian-run casinos in Connecticut has "become a training ground for lucrative jobs with the (Indians') gambling empire," according to the Providence Journal-Bulletin. The agency's executive director, another high-level regulator and the former state police commander have all gone to work for the casino industry.9
* Raymond Avansino, who led the worldwide gambling expansion efforts of Hilton Hotels as the corporation's president from 1993 through 1995, previously served for three years on the Nevada Gaming Commission.10
* The former director of the Minnesota Gambling Control Board, Thomas Anzelc, later went to work for a company that distributes gambling equipment.11
* Mick Lura, former chief administrator for the Iowa State Racing and Gaming Commission, left to become an executive for President Riverboat Casinos.12
* Nevada Gaming Control Board Chairman Bill Bible, hailed within the gambling industry as the nation's top regulator, was appointed to serve on the National Gambling Impact Study Commission at the behest of gambling interests. During the appointment process, the Las Vegas press called Bible "the man the (casino) industry desperately wants on the panel."13
* Harold Monteau, former chairman of the National Indian Gaming Commission, heads a law office in Washington, D.C., which works for tribes on behalf of various issues, including gambling.14
* As executive director of the Illinois Gaming Board, Milton Friedman used his position to link a Nevada casino operator with a state group seeking a casino license. The two parties formed a partnership, which now operates the third-richest gambling boat in the state.15
Footnotes
1 Rick Alm, "Former Woodlands Manager, Son-in-Law Charged with Theft of Funds," Kansas City Star, 1/8/03.
2 Associated Press, "Ex-N.J. Officials Cashing in with Indian Casino Jobs," (Hackensack, N.J.) Record, August 25, 1993, p. A6.
3 Bruce Rubenstein, "Chutes and Ladders," Corporate Legal Times , July 1994, p. 4.
4 Patrick Peterson, "A Wealth of Opportunity for Natives," (Gulfport/Biloxi, Miss.) Sun Herald, April 10, 1997, p. A1.
5 Christopher Cooper, "Bill Eliminating Louisiana Gambling Faces Tough Odds," (New Orleans) Times-Picayune , April 16, 1997, p. A3.
6 Mitchell Zuckoff, "Of Carpentry and Casinos," Boston Globe , September 13, 1994, sec. "Economy," p. 37.
7 Associated Press, "Former Gaming Regulator to Run Vicksburg Casino," (Memphis) Commercial Appeal , March 12, 1994, p. 41A.
8 Ken Armstrong and Robert Becker, "Casino Board Seeks to Rein In Ex-Officials," Chicago Tribune , November 12, 1995, sec. "Metro," p. 1.
9 "Roulettes and Revolving Doors," Providence Journal-Bulletin , January 31, 1997, p. 4B.
10 Jesus Sanchez, "Hilton President Checks Out After 3 Years," Los Angeles Times , November 22, 1995, p. D2.
11 Jim Klobuchar, "Absurdities Spawned by Gambling Have Grown," (Minneapolis) Star Tribune , March 8, 1992, p. 3B.
12 Jenny Hykes, "Meskwakis Hire Lura to Head Casino," Des Moines Register, Dec. 28, 1996, sec. "Metro," p. 3.
13 Jeff German, "Tark Brings Back Old Times to the Thomas & Mack Center," February 18, 1997, p. 3A.
14 "Former Indian Gaming Regulator Heads for Private Practice," Indian Country Today , March 31, 1997.
15 David Gosnell, "Odds on Favorite," Belleville (Ill.) News-Democrat , May 11, 1997.