LV firm faces fine for hiding behind a front organization

Friday, July 14, 2000 | 10:55 a.m.

BILOXI, Miss. -- Grand Casinos and its operations boss Tom Brosig face a $50,000 fine for financing an environmental group opposing an expansion at the President Casino Broadwater Resort.

Brosig is head of gaming operations in Mississippi for Grand Casinos' parent, Park Place Entertainment Corp. Las Vegas-based Park Place owns the Grand Casinos in Biloxi and Gulfport.

Brosig also is co-chairman of the steering committee for Balancing the Coast's Future. The group's co-chairman, Glenda Fountain, is the mother of Park Place's vice president for legal affairs, Trudy Fountain.

Chuck Patton, executive director of the Mississippi Gaming Commission, said the fine will be recommended to the commission.

Gaming regulations prohibit a casino company from engaging in activities that "reflect discredit upon the state of Mississippi or the gaming industry."

Brosig admitted his company was providing financing for Balancing the Coast's Future. The group has sent out mailings claiming the President's plans would cause environmental damage to the coast.

Patton said his agency does not object to a casino company openly expressing opposition to an expansion project by a competitor, for environmental or other reasons. Regulators do object to casino companies hiding behind front organizations to oppose expansion projects or public ballot initiatives.

"We don't necessarily have a problem with people speaking their mind," Patton said. "We do have a problem with somebody engaging in a subterfuge."

"I have no comment," Brosig said Thursday.

He previously had said he did not fear competition from the President's $2 billion proposal to build six hotel-casinos on a man-made peninsula in the Mississippi Sound.