Brief: Merger faces static in Louisiana

Thursday, Feb. 11, 1999 | 11:16 a.m.

At issue, according to the Times-Picayune newspaper in New Orleans, are allegations a Players representative channeled $550,000 in cash, cars and furniture to former Louisiana Gov. Edwin Edwards and his son, Stephen, in exchange for their help in getting Players a license for two Lake Charles riverboat casinos.

The representative, Ricky Shetler, worked for a company that owns the land where the Players riverboat docks in Lake Charles. He later worked as a consultant for Players.

Edwards was indicted last year on federal racketeering charges related to his dealings with riverboat casinos. Players has said it is cooperating with the investigation, and federal prosecutors say neither the company nor its employees are the subject of their investigation.

But Louisiana casino regulators are investigating the allegations and that means Players could lose its Louisiana gaming license, the Times-Picayune reported.

Regulators may not want to let Players off the hook easy by letting the company sell its license to Jackpot, the Times-Picayune reported.

"If you've had some fraud, particularly in the obtaining of a license, you don't want to reward that fraud," Hillary Crain, chairman of the Louisiana Gaming Control Board, told the newspaper.

Earlier this week, Las Vegas-based Jackpot announced it would buy Atlantic City-based Players for $424 million in cash, stock and assumed debt.