Hearings start; LV firm likely to keep license

Wednesday, Sept. 22, 1999 | 11:57 a.m.

ATLANTIC CITY -- As Park Place Entertainment began a three-day hearing before the New Jersey Casino Control Commission Tuesday, the chairman of that body hinted that he does not consider the charges leveled against the Las Vegas company to be "license-threatening."

"This may well be the case, and nothing I have said should be taken as indicating that I disagree with the (Division of Gaming Enforcement's) opinion," the Press of Atlantic City quoted Commission Chairman James Hurley as saying.

The newspaper reported that company officials and the DGE already agree that Park Place should adopt a stronger corporate compliance program, but that the division wants to press ahead with hearings anyway to "bring this whole episode into the light of public awareness."

The investigation stemmed from Bally Entertainment Corp.'s decision to hire the then-speaker of the Florida House of Representatives, Bolley "Bo" Johnson, as a real estate consultant in 1994, the year it tried to put a gambling legalization measure on that state's ballot. Bally is now part of Park Place. Bally paid Johnson $240,500, but Park Place admitted to the commission that he did little work for the company. Johnson was jailed earlier this year on tax evasion charges.

"What we essentially are left with is Bally paid Speaker Johnson $250,000 for little or no work, and we must ask why," said DGE Director J.P. Suarez.

The DGE is asking the commission to require Park Place to establish tighter reporting rules on lawsuits, as well as its contact and activities with government officials in jurisdictions outside of New Jersey. Park Place said it has already established most of those conditions.

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