Casino temporarily closed over personnel violations

Wednesday, July 12, 2000 | 10:36 a.m.

THE ASSOCIATED PRESS

GARY, Ind. -- For the first time, the Indiana Gaming Commission closed a casino boat, after learning that a newly promoted employee had not undergone a required background check.

Detroit businessman Don Barden's Majestic Star casino was ordered closed Tuesday because it violated state regulations. About 250 passengers were told to leave the boat, along with many employees.

"What happened came as a surprise to us because we really thought we were in compliance," casino spokesman Jef Bauer said.

John J. Thar, executive director of the gaming commission, told the casino at 10:30 a.m. to cease operations by noon. Regulators told casino officials to let patrons cash out.

Four hours later, the casino resumed its business after making personnel changes that met state requirements.

The order to close followed a shuffling of casino employees, commission spokeswoman Jennifer Arnold said. The casino's surveillance director had been fired and the director of security moved into the vacant position.

Then the assistant director of security was promoted to head the security department, even though that person did not have a required background check.

"Once we found out we weren't (in compliance), we immediately revised our plan, put that in place and the (commission) approved it," Bauer said.

The casino lost revenue from the noon and 2 p.m. boardings.

Many of those waiting in line for the 2 p.m. cruise instead opted for the cruise of the neighboring Trump Casino at 3 p.m.

The revised personnel plan was the chief concern of the commission, Arnold said.

"It is important to note that the casino did not close because of concern about the integrity of their games," she said.

The violation is similar to one from 1998, when the Majestic Star was fined $110,000 for putting one person was in charge of both security and surveillance.

"The security and surveillance departments provide checks and balances," Arnold said.

The commission will continue to investigate. The violation could result in disciplinary action, particularly since it was not the first of its kind for the casino, Arnold said.