Maine slots consultant quits panel, blasts ‘political tricks’

Francis X. Quinn

Wednesday, Dec. 17, 2003 | 9:04 a.m.

AUGUSTA, Maine -- A consultant for a gaming company seeking to develop slot machines in Maine quit the state liquor and lottery commission on Tuesday, blasting "certain members of the state's elected leadership" for engaging in "cheap political tricks."

Kathleen Newman, the commission member who has become an advocate for Capital Seven LLC of Las Vegas, maintained in her letter of resignation that her state and private activities produced no conflict of interest and that "there is no legal or ethical requirement for my resignation at this time."

But as the Maine Harness Racing Commission opened its review of Capital Seven owner Shawn Scott, Newman suggested that her resignation could "eliminate another distraction from the real issues."

Newman also wrote that by stepping down, "I hope to avoid future opportunities for the governor and others who disagree with the outcome of the racino referendum to harm my client."

Gov. John Baldacci, in the aftermath of November's voter approval of a measure allowing slot machine at commercial harness racing tracks, has been leading an effort to overhaul Maine's system of gaming regulation.

Last week, Baldacci outlined a proposal to create a five-member Gambling Control Board to oversee slots.

Powers could include limiting the number of machines allowed at tracks. Baldacci also hopes to ensure the state would not spend more money regulating and policing new gaming operations than it gets back in additional revenue.

"It is my understanding," Newman wrote to her follow commissioners, "that the governor's office has asked this body to consider whether I have a 'conflict of interest' in representing this client.

"My legal counsel has concluded upon review of existing statute and regulation that there is no conflict ... I have stated repeatedly that if my role with (Capital) Seven or the organization of this commission evolved in such a way that a conflict was created, I would step down immediately.

"In any other circumstance this would be sufficient, but clearly there is more at play here than commonly accepted ethics."

Newman said, however, it seemed that unnamed elected officials "are attempting to manufacture a conflict as a tactic to undo the Nov. 4 election results. ... Neither the public nor this commission are served well when they fall for these cheap political tricks."

Gubernatorial spokesman Lee Umphrey said Baldacci found Newman's advocacy for a gaming company while serving on the commission "inappropriate" but had not sought her resignation.

At the same time Umphrey said, quoting Baldacci, "Mrs. Newman's decision to resign from the liquor and lottery commission is the right one."

Scott, who has broken ground on a slot machine facility at Bangor, financed the November referendum campaign to legalize slot machines.