Columnist Jeff German: Gamers awaiting fate of D.C. ally

Friday, April 20, 2001 | 3:24 a.m.

Jeff German is the Sun's senior investigative reporter. He can be reached at (702) 259-4067 or by e-mail at german@lasvegassun.com.

HE IS ONE of the casino industry's biggest allies on Capitol Hill.

But suddenly Sen. Robert Torricelli, D-N.J., finds himself in the middle of a political firestorm that threatens to ruin his career -- and his usefulness in Washington to the often-attacked industry.

This past week the New York Times reported in a lengthy front page story that FBI agents were investigating whether Torricelli accepted tens of thousands of dollars in unreported gifts and cash from one of his former political supporters.

The allegations arose out of a three-year criminal investigation into fund-raising irregularities in the senator's 1996 campaign.

Torricelli has denied any wrongdoing and pledged his cooperation in the probe, which escalated recently when FBI agents went to the amazing step of searching his New Jersey home for evidence.

"This is costing him the personal credibility that he needs to get things done," one Washington casino lobbyist says. "It's a shame that at a time when the industry needs all the allies it can get, one of its strongest friends is in this situation."

On Capitol Hill, Torricelli is known as a hard-charger who often cuts corners to accomplish his goals.

"The very thing that makes him effective is the thing that makes him vulnerable," the lobbyist says. "He jumps in with both feet before he thinks things out."

Torricelli's vocal support of the industry stems from the tremendous success of gambling in Atlantic City. He has had a strong working relationship with the Washington-based American Gaming Association and its chief lobbyist, Frank Fahrenkopf.

At the same time, Torricelli has been close to Nevada Sen. Harry Reid, the Democratic assistant minority leader. As the former head of the Democratic Senatorial Campaign Committee, Torricelli worked hand-in-hand with Reid during the 2000 election and parlayed his prolific fund-raising skills into a 50-50 split for his party in the Senate.

For a while this year it appeared as though Torricelli would become even more valuable to the casino industry when he took a coveted seat on the Senate Finance Committee, one of the two most important congressional panels on the Hill. Like its counterpart, the Ways and Means Committee in the House, the Finance Committee handles tax-writing legislation coming through Congress. The ability to fend off new taxes has always been the industry's top priority inside the Beltway.

Congressional and gaming sources in Washington acknowledge that Torricelli seems to be in a lot of trouble right now. Being accused in the New York Times of accepting Italian-made suits, big-screen television sets and expensive jewelry from a campaign backer is not a political career-booster.

"He's getting hit real hard," one Capitol Hill insider says. "For the most part, there tends to be a forgiving attitude toward campaign violations because there are so many tripwires that anybody could fall across them. But gifts involving designer suits and Rolex watches are harder to defend."

Still, those within the casino industry and Nevada's congressional delegation, the people who know Torricelli the best, say it's premature to write off the New Jersey senator.

"There's no greater fighter in the Senate than Bob Torricelli," a Nevada congressional source says. "Anybody who underestimates this guy's ability to put up a fight would be making a serious misjudgment."

Adds another Washington insider: "He's gotten into hot water before, and he hasn't been scalded by it."

Even casino industry lobbyists are willing to bet that Torricelli will prevail in the aftermath of the FBI's corruption investigation.

"I suspect he'll survive this," a lobbyist says. "He's so brash and forward that he will take whoever comes at him head-on and probably win. He's no shrinking violet."