Harrah’s, Ameristar targeted in casino dispute

Thursday, Feb. 19, 1998 | 9:42 a.m.

Pennebaker, through his attorney Bill Spell of Clinton, has reached into the Gaming Commission's past opinions to petition regulators to censure the Isle of Capri, Harrah's and Ameristar for activities associated with efforts to derail the Big Black casino.

The petition was filed Tuesday with the Gaming Commission.

"In the past, they have reprimanded casinos for dropping six quarters on the floor, now we will see what they would do with something that really breaks the law," Pennebaker said Wednesday.

Specifically, Spell refers to an opinion of the commission in January 1994 involving the Gold Strike Casino on the Gulf Coast.

In that opinion, the Gaming Commission found that state law placed a duty on regulators to promote competition and that the public policy of the state is that licensed gaming be conducted "competitively."

However, the commission noted that it was concerned about opposition from other Gulf Coast casinos to Gold Strike.

The commission said it was improper for a licensed casino to fight competition from another group or to secure or maintain a monopoly.

Such actions "conflict with the expressly stated public policy of this state and may constitute a violation of the licensee's obligations under its license or a violation of federal and state anti-trust laws," the commission held.

Spell said the commission clearly expressed the law and public policy.

"They have said if you opposed this thing ... because it will compete with you that's a violation of the licenses the casinos now hold. If they violated the conditions of the licenses, the commission should stop it," Spell said.

Gaming Commission executive director Paul Harvey said he has looked at the petition and will talk with commission members and the legal staff about it.

"The issue of the Big Black and the decisions of the commission are on appeal to the Supreme Court. This is ongoing litigation. It is inappropriate for me to make any comment," Harvey said.

Spell said the Ameristar, Isle of Capri and Harrah's campaigned against the Big Black site themselves and through the city of Vicksburg.

"We hope for two things: one, to have the Gaming Commission enforce the law and their own regulations, which say that gaming should be regulated competitively; and second, we ask the commission to require the Vicksburg casinos to cease and desist opposing Big Black because of competition and take action as appropriate against their licenses," Spell said.

A Hinds County judge ruled in December in a lawsuit filed by Pennebaker that a casino site on the Big Black River along busy Interstate 20 is legal under state law.

The Gaming Commission, which ruled in 1996 that the site 13 miles east of Vicksburg was unsuitable, has appealed the ruling to the state Supreme Court.

Multi-Gaming Management and Horseshoe Gaming Inc. have proposed a $150 million casino, hotel and NASCAR-style race track at the site.

Opponents argued the Big Black project would intercept their stream of customers out of Jackson.

The three casinos have asked the Supreme Court to allow them to join in the appeal by the Gaming Commission, something they were not allowed to do in circuit court. Spell said that request was "just another example of how they are acting to oppose the Big Black casino site."