From the Chicago Tribune

Gaming Board gets tougher on its own officials
Aide's move to casino job cited

By John Chase
Tribune staff reporter
Published October 23, 2003
Nearly four months after the state's top casino regulator left his job to
become an executive of a casino chain that operates two riverboats in
Illinois, the state Gaming Board on Wednesday passed a broader code of
conduct that would prevent such moves in the future.
Under the new code, which will go into effect next month, Gaming Board
members, administrators and attorneys could not take jobs with any arm of
the casino industry that does business in Illinois for one year after
leaving their state job. It also prevents casinos or higher-ups with those
casinos or their parent companies from talking with board members or
employees about jobs.
Former Board Administrator Philip Parenti was allowed to leave his job in
June and join the Harrah's casino chain in Las Vegas because the board's
current code of conduct does not specifically prohibit board members and
employees from taking jobs with the parent companies of casinos in Illinois.
Harrah's owns two riverboats in Illinois, one in Joliet and the other in
Downstate Metropolis.
Parenti's move infuriated Gov. Rod Blagojevich, who called it a "blatant
conflict of interest" and said the state needs to close loopholes allowing
public officials to take positions with industries they once regulated.
The new code forbids employees from taking jobs with "licensees, applicants,
their affiliates, key persons and representatives" for one year after
leaving their jobs with the board.
After that year is up, however, a former board member or employee could take
a job with an Illinois casino or with any person or agency connected to
casinos in or outside Illinois, said Jeannette Tamayo, the interim
administrator.
Although the new code does allow for some board employees to seek a waiver
from the board of the prohibitions, that waiver would not be available to
any administrator, deputy administrator or attorney, Tamayo said. The new
code also is aimed at preventing casinos, parent companies and executives or
top investors with casino firms from even speaking to board members or
employees about possible jobs.
"The revised code of conduct not only holds employees of the board to a
higher standard," Gaming Board Chairman Elzie Higginbottom said, "but, more
importantly, it also holds our licensees to a higher standard."
In addition, the modified code bars former board members and employees
within one year of leaving their state post from acquiring any ownership
interest with a casino or parent company doing business in Illinois or any
key individuals involved with those casinos. The current code allows former
board members and employees to buy up to $20,000 in ownership interests one
year after leaving.
The revised code also closes a loophole that had allowed board members and
employees to have been compensated or received free travel and lodging from
casinos.
The new code also beefs up the ban on the types of relationships board
members and employees can have. Under the current code, a conflict of
interest occurs only if there appeared to be an economic relationship
between a board member or employee and someone who may influence Gaming
Board matters. Under the revised code, a conflict is invoked if there
appears to be a "private interest, whether personal, financial or otherwise"
between a board member or employee and someone else connected to a casino.
The board voted against allowing the Casino Queen in East St. Louis to be
open 24 hours to compete with Missouri casinos.
Copyright © 2003, Chicago Tribune