Coast Resorts oddsmaker Franzi quits in face of probe

Gary Thompson

Tuesday, June 17, 1997 | 11:59 a.m.

Embattled Coast Resorts Inc. oddsmaker Zacharie Franzi has resigned in the face of a State Gaming Control Board investigation into his activities.

In a letter to Coast Resorts Chairman Michael Gaughan, Franzi said he was resigning "to avoid any further embarrassment, public or private, to Coast Resorts, and the gaming industry and myself."

Franzi faced extensive grilling from the Control Board over his association with convicted felon Danny Kramer and his prior testimony in a probe into betting activities at the Barbary Coast.

At a board hearing last week, Franzi had testified he placed a $55,000 bet for the late gambler Gene Mayday on the 1995 Super Bowl. But Control Board Chairman Bill Bible pointed out today that Mayday had died four to five months before the game took place.

"In May, my vote against Mr. Franzi's licensing as a key employee was based on his association with Mr. Kramer, which brought disrepute to the gaming industry," Bible said.

"Based upon Franzi's most recent testimony, there is a credibility problem in addition to an association problem. It has been difficult to get candid and straight responses from Mr. Franzi."

At the earlier hearing, the board voted 3-0 to deny Franzi's bid for a gaming license, an action duplicated by the board today when it voted despite Franzi's resignation.

As a result, Franzi's 18-year career as chief oddsmaker for the Barbary and Gold Coast casinos is over. Franzi's attorney, Steve Stein, said Franzi will receive no further compensation from Coast Resorts as a result of his resignation.

Bible said a review of wiretap transcripts from conversations between Kramer, a New York City gambler, and Franzi indicated "activity that may have gone beyond Mr. Franzi acting as a bagman for Mr. Kramer."

Kramer, who pleaded guilty to fixing horse races and was fined $2 million, had several hundred thousand dollars in safe deposit boxes in Las Vegas casinos. The board's investigation that stemmed from the wiretaps disclosed that, while Franzi may not have made any bets for Kramer, he "aided Kramer in circumventing the laws by providing funds for various runners" who placed bets at Las Vegas sports books, board member Steve DuCharme said.

While the Franzi saga appears closed, Coast Resorts faces possible disciplinary proceedings over what board members consider shoddy internal control procedures and possible violations of gaming regulations.