Gaming Commission issues $50,000 fine against Park Place Entertainment

Matt Moore

Thursday, July 20, 2000 | 11:06 a.m.

JACKSON, Miss. - Mississippi gambling regulators have fined a Biloxi casino company $50,000 for its part in financing an environmental group opposed to the expansion of a nearby competitor.

The action by the Mississippi Gaming Commission on Thursday against Tom Brosig, head of gaming operations for Grand Casino's parent company, Park Place Entertainment in Mississippi, was expected.

Park Place owns Grand Casinos in Gulfport and Biloxi.

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.

The group had sent out mailings earlier this year criticizing the President Casino's planned $2 billion expansion that will add 13,000 hotel rooms and one driveway. The project would requiring filling in tens of acres of the Mississippi Sound.

Brosig and others had claimed the project was unfunded and would slow traffic on U.S. 90.

As part of the fine, which Park Place did not contest, Brosig must resign from his position on the environmental group's steering committee.

The agreement stipulates no admission of any wrongdoing by Park Place. Regulators also agreed to take no disciplinary action against Park Place or its workers because of involvement with Balancing the Coast.

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

Brosig said 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.

Gaming Commission Executive Director Chuck Patton said the 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, Patton said.

Earlier this year, Balancing the Coast's Future Inc. sent two mailings and made telephone calls slamming Destination Broadwater, which would fill part of the Mississippi Sound to float the six casinos; and Point Cadet 2000, a private plan to redevelop east Biloxi.

The U.S. Army Corps of Engineers could decide by November whether to allow the project, which would create about 60 acres of dry land in the Sound.