NJ probing casino firm payments to legislator

Wednesday, June 9, 1999 | 11:46 a.m.

The Orlando Sentinel reported investigators wrapped up one stage in a 1 1/ 2-year investigation last week by filing a 62-page report that was not made public. The report by the New Jersey Division of Gaming Enforcement is said to center on Bally Entertainment Corp.'s relationship with Johnson.

The next stage of the probe will be public hearings by New Jersey casino regulators, who are interested in the conduct of casino licensees in all jurisdictions where they operate.

Johnson was convicted of tax evasion in federal court in Pensacola last month for not reporting the payments from Bally and other sources.

"It is this association and Bally's alleged payments to Mr. Johnson that remain the principal focus," said New Jersey's gaming enforcement director, John Peter Suarez, the Sentinel reported.

Bally was acquired by Hilton Hotels Corp. after the Florida gaming legalization effort failed. Hilton later spun off its gaming division into Las Vegas-based Park Place Entertainment. Park Place is acquiring the Caesars World casino chain.

Park Place spokesman Geoffrey Davis told the Sentinel that Park Place officials had not seen the report.

"The company is confident that after this long and thorough investigation, it will not reveal any improprieties whatsoever," Davis told the Sentinel.