Regulators balk at $750,000 parachute for gambling-addicted Park Place exec

John Curran

Thursday, Jan. 4, 2001 | 10:37 a.m.

ATLANTIC CITY -- Leery casino regulators balked Wednesday at approving a $750,000 golden parachute for former Caesars Atlantic City Hotel Casino President Gary DiBartolomeo, who was forced out of his job after admitting he is a compulsive gambler.

In a 5-0 vote, the state Casino Control Commission refused to approve a severance package proposed by Park Place Entertainment Corp. of Las Vegas that would give DiBartolomeo his annual $362,000 salary as a bonus, another $362,000 to buy out his contract and more than $30,000 in medical and dental benefits.

But the commission, which is still trying to decide whether to ban DiBartolomeo from the casino business altogether, reserved a decision on the severance pending a final ruling on his license, which is likely to come next month.

DiBartolomeo, 45, of Margate, is the highest-ranking casino executive ever to admit being addicted to gambling. A rising star in the business, he was named president of Caesars a year ago but took a leave of absence five months later to seek treatment for his addiction.

The state Division of Gaming Enforcement has asked the casino commission to revoke his license to work in the industry, citing lies, questionable financial transactions and gambling binges dating to 1995, when his license was renewed on the condition he quit gambling and start going to Gamblers' Anonymous meetings.

In a tearful appearance before the commission in November, DiBartolomeo admitted his habit and said he wasn't ready to return to work in a casino. But he still wants to retain his license so that he can return when he believes he is ready.

On Wednesday, representatives of DiBartolomeo and Park Place -- which owns Caesars -- tried to persuade the commission that the $750,000 payout will help DiBartolomeo support himself and his family and pay for his treatment.

The package is consistent with Park Place's existing corporate policy and would help DiBartolomeo in his recovery, according to lawyers Mark Sandson and Guy Michael.

Park Place, which has the right to terminate DiBartolomeo's three-year contract if he loses his license, instead opted to offer the six-figure buyout, calling it "the right thing to do."

"It will allow Gary and his family to heal from what can fairly be called an occupational injury," Sandson said.

But commissioner Michael Fedorko grilled Sandson on the timing of the request, asking why it should be approved before a final decision has been made on DiBartolomeo's future.

The commissioners also denied DiBartolomeo's request to keep the financial terms of the deal secret.

DiBartolomeo and Sandson declined comment on the vote afterward.