State gaming board probes Malone flier

David Strow

Wednesday, April 26, 2000 | 11:11 a.m.

The state Gaming Control Board is probing two local casino operators in the production of an anonymous political flier attacking Clark County Commissioner Lance Malone.

Control Board Chairman Steve DuCharme said Tuesday that board agents were assigned to examine the Malone flier case after a meeting with Station Casinos Inc. officials April 14. DuCharme, however, stressed no decision has been made to initiate disciplinary action against any company or individual.

"We have been monitoring this situation, and will continue to monitor and gather information," DuCharme said. "We will make our decision when enough information is available.

"Without talking about specifics, we're reviewing this incident for involvement by any licensee under our jurisdiction."

Last week Station officials acknowledged that the company, together with lobbyist Tom Skancke, was involved in the printing and distribution of the flier.

Stating "You Can't Trust Lance Malone," the flier criticized Malone for saying he would vote against a neighborhood casino in Spring Valley, then changing his mind and voting for it. The flier suggested Malone's actions were related to $100,000 in campaign contributions from "companies that support more neighborhood casinos."

The anonymous fliers were mailed to 39,000 people in Malone's district.

"We initiated that contact with them (the Control Board) and made them aware of the situation," Station spokesman Jack Taylor said. "We haven't done anything wrong. We look forward to working through the situation with them."

Taylor said Station continues to investigate its involvement.

"We have initiated our own internal review of the situation as well, and look forward to working with the Control Board." DuCharme confirmed that Station officials initiated the review by the Control Board.

"They said they were reviewing internal documents to determine possible involvement," DuCharme said.

Skancke has claimed George Maloof, president of the Fiesta hotel-casino, and Howard Hughes Corp. were also involved in producing the flier.

Maloof, however, said he was "absolutely not" involved in the flier's production.

"I haven't spoken to them (the Control Board)," Maloof said. "I never knew anything about any mailer."

As license holders, Station and Fiesta would be subject to discipline by the Control Board if it is found it either had violated any state laws or ordinances, as would individuals at either company. Nevada law prohibits the distribution of anonymous political campaign material.

Disciplinary action in Nevada also could have consequences in other states that regulate casinos. Station has Missouri casinos and plans to expand to California, while the Fiesta operates only in Nevada.

DuCharme added that the Control Board is responsible for ensuring licensees are "conducting themselves in the highest ethical manner" and the board could initiate disciplinary action if it is found they were not.

Since Hughes no longer holds any Nevada gaming licenses, it would not be subject to discipline by the Control Board.

Potential penalties available to the Control Board run from "no action whatsoever to whatever the statute permits, up to and including revocation (of a gaming license)," DuCharme said.

"It would depend on the circumstances surrounding (the incident)," he said.

Revocation of a gaming license would force a company to immediately shut down all gaming operations in the state, while loss of license would force an individual out of the gaming business.

However, such harsh measures are quite rare. Most disciplinary actions that come before the Control Board are settled, with the target company agreeing to pay a fine.