CasaBlanca shareholder wins license

Friday, Aug. 21, 1998 | 11:04 a.m.

CARSON CITY -- The state Gaming Commission, despite some misgiving, voted unanimously Thursday for a limited license for James Ritchie, a former federal prosecutor and longtime casino figure.

Commissioner Sue Wagner said she saw a "variety of errors in judgment" on the part of Ritchie. Commissioner Augie Gurrola said there were cases of "questionable association" by Ritchie with individuals.

Ritchie won approval to hold 12.3 units in the CasaBlanca hotel-casino in Mesquite. At one time he headed a U.S. Justice Department Strike Force looking into irregularities in Nevada gambling, later he directed a federal gambling study commission and he has worked in the industry for years.

Ritchie was criticized for his associations with Emmett Munley and John Kennedy. Munley, was described by investigators as a person who had past problems in the gaming industry. He applied for a license in the 1980 for the Edgewater resort in Laughlin but questions arose about his source of funds. He withdrew his application. There were also allegations at an Indian reservation in New York that Munley had skimmed profits.

Ritchie said he knew Munley socially and played golf with him, but he didn't know about his problems in gaming. Wagner said she found it hard to believe Ritchie loaned Munley $450,000 without a note.

The money has been repaid. There was also criticism of Ritchie about his association with Kennedy who was trying to set up a group to buy the Desert Inn hotel-casino in Las Vegas. Kennedy was described as a "flim-flam man."

Ritchie said he was the one who alerted state agents to the possible problems surrounding Kennedy.

There were also questions about an investment in a Canadian gaming venture that was not disclosed on his application.

Attorney Mark Ferrario, representing Ritchie, asked the commission to overturn the recommendation of the Gaming Control Board that the license be limited for two years. He argued Ritchie had "a long and distinguished career in the public and private sector. He has respect for the regulatory process."

Ferrario said Munley was not a convicted felon and had never been denied a license.

Commissioners praised the past record of Ritchie but decided the license needed to be limited so there could be another look at his behavior in two years.

Commission Chairman Bill Curran said, "These things, we can't close our eyes to."