It's one of the last vestiges of the suspicion and second-class citizen status that came along with a casino job 25 years ago. Some things have changed, but the most important restriction still exists today: casino employees and executives are prohibited from running for or taking part in Atlantic City or statewide politics. When the gaming industry was established in the mid-1970s, gaming was illegal everywhere outside of Las Vegas. New Jersey understandably had some concerns about the involvement of questionable people in the industry. A series of restrictions went along with a strict code of qualifications. In addition to the political ban, casino employees were not allowed to gamble anywhere in Atlantic City, and the license application was more like a book. But it was a new industry, with a checkered background, so these types of restrictions seemed reasonable, even necessary. Legal Language Tere are two references in New Jersey law that limit and restrict the participation of casino employees in politics. The Casino Control Commission has regulations that prohibit contributions to candidates by gaming companies and executives. An issue related to these restrictions was raised this year when casino companies funded an ad campaign criticizing the governor's attempts to raise casino taxes. Each casino received a letter from CCC Chairwoman Linda Kassekert warning them about contributing to political campaigns. Whether the ads can be considered a political campaign was never resolved, nonetheless, the commission demonstrated how seriously it takes these restrictions. The second limitation comes from the state ethics law, which, in addition to similar contribution restrictions, bars public officials from becoming officers, members or employees of casino companies. While the restriction was put in place to prevent public officials from working for casino companies, the inverse is correct as well: Casino employees (those with 2-1 gaming licenses and above) cannot become public officials in Atlantic City or in any state capacity. So why should these seemingly outdated restrictions remain in place? After all, even politicians recognize the value of the industry (if only for its tax benefits and job-creation). They also praise the industry for the integrity it has demonstrated over the years. Casino executives and employees are some of the most involved and committed individuals when it comes to charities and community activities. In Atlantic City, the ban has had a serious impact. With approximately 20,000 voting-age adults and a casino employee population exceeding 5,000, the available pool of qualified candidates and campaign workers has shrunk dramatically. Atlantic City Mayor Lorenzo Langford was forced to resign as a shift manager at Trump Taj Mahal when he was first elected to city council in an effort to serve his community. How many other qualified candidates are prevented from even considering public office because they are prohibited from holding a job in the casino industry and at the same time serving as an elected official in Atlantic City? State Senator William Gormley, who represents Atlantic City in the legislature, doesn't see the restrictions changing anytime soon. "The atmosphere in Trenton is actually moving toward more restrictions in the political process as a result of the ‘pay-to-play' problems we've been witnessing with this administration," he says. While Gormley admits the restrictions are outdated and outmoded, he doesn't think the time is right to challenge them. "We've got an incoming acting governor, Richard Codey, who knows Atlantic City and the gaming industry very well," Gormley explains. "As Senate president and governor, he's going to be in charge for the next 16 months. He'll be very supportive of all the initiatives that we're going to make to create a new Atlantic City, with non-gaming amenities and the quality-of-life issues that are so important to casino employees." Gormley wouldn't expect Codey to be willing to consider revising the political prohibitions. "Since he wrote the original legislation in the Casino Control Act that created those restrictions, it is unlikely that he'd support removing them," Gormley reports. "So do we fight him on this one issue, while he's supportive of 99 percent of what we want to accomplish? I think the answer is clear." But times have changed. Today, gaming is one of the most highly regulated industries in the world. Since 1978, when gaming came to New Jersey, casinos are now active in almost 30 states across the U.S. The vast majority of casinos are owned and operated by public companies. Even Indian gaming is highly controlled and monitored. Case History In the 1980s, Gloria Soto, who was at the time a legal counsel for the Claridge, went to state court to claim that her First Amendment rights were violated by the restriction. Soto lost and appealed unsuccessfully all the way to the Supreme Court. The ruling stated that the regulations were understandable and should remain in place. A second case involved Virginia McDowell, a former vice president at the Tropicana. McDowell wanted to work on the campaign of Atlantic City Mayor James Whelan and was seemingly prohibited by the statute. John Donnelly, a partner with Levine, Staller, Sklar, Chan, Brodsky & Donnelly in Atlantic City, represented both Soto and McDowell at different times. The McDowell ruling opened the door slightly, he says. "We were able to get the court to rule that she was permitted to work on Whelan's campaign as long as she didn't contribute anything ‘of value,' which meant that she couldn't serve in her professional capacity, which was marketing, for the campaign," Donnelly explains. "She could lick stamps, knock on doors or drive people to the polls, but not use her professional services." Although nothing prevents a casino employee from running for an office, that employee would be required to resign his casino job in order to serve. It's unclear, says Donnelly, if that employee would be able to contribute his own money to his own campaign, however. "This has never occurred so it has never been challenged," he says. "What is clear is that once a person is elected to an Atlantic City or statewide office, he or she would be required to resign their casino job." That's exactly what happened to Langford, who had a long and distinguished career in the gaming industry prior to his election to city council. "He had no choice," says Donnelly. "The law and regulations are clear: No casino employee or executive can serve as a public official in Atlantic City or with the state of New Jersey." At the time, Langford clearly would have preferred to continue to work in the industry. He was forced to find other employment to supplement his small salary as a city councilman, and was separated from an industry where he had achieved much success. Follow the Money Casino companies and executives (but not employees) are also prohibited from contributing to state political campaigns or candidates. (Casino companies, executives and employees are permitted to contribute to and participate in campaigns for federal officials.) This restriction is codified in Title 52 of the state ethics law, as well as in regulations of the Casino Control Commission. Oddly enough, gaming suppliers, such as slot machine manufacturers, are not under the same restrictions. But some casino executives don't mind this prohibition. "We're immune to elected officials who want us to contribute to their campaigns," said one casino executive who did not want to be identified. "This saves me and my company a lot of money." Although several other industries, such as the banking and insurance businesses, also have some restrictions on political contributions, the gaming industry is the only business where its employees and executives are prohibited from actually holding political office. Soto's political involvement was cut short by her casino career. "I had been involved in the Democratic party for most of my life," she says. "I wanted to get involved in some committees so I petitioned the Casino Control Commission. I could not get a direct answer from the CCC or the DGE so we decided to go to court." Times have definitely changed, says Soto, who now works for the government of Puerto Rico in Newark. "It's time to revisit this issue," she says. "The integrity of the industry is unquestioned and it has contributed to the disenfranchisement of voters in the casinos." McDowell agrees with Soto. "When we are prohibited from having a place at the table, it marginalizes our contributions to our communities," she says. "And in municipalities and host communities, where we provide the lion's share of the tax revenue, such as Atlantic City, it only makes sense that we should be involved." Is this sense of disengagement suppressing a normal, functioning political environment in the gaming industry? While casino executives and employees, even without making campaign contributions, can make their views known to elected officials, the option of running for office or even contributing "something of value" to a campaign is absent. Therefore, those groups and individuals that have that option are more likely to be heard. Gormley disagrees that the restrictions deaden the political acumen of casino employees. "When we were battling the tax proposals from the McGreevey administration," he says, "it was clear that casino employees were paying attention and understood the issues. "Local 54 was tremendously helpful. (President) Bob McDevitt was a great spokesman for the industry and brought dozens of his members to Trenton to testify against these measures at a time when other unions would not help." McDowell, who is now vice president of administration for Argosy Gaming, is based in St. Louis and is very active in the political process in Missouri. "I'm actually registered as a lobbyist," she says, "something that would not have been possible in New Jersey." Argosy operates in several Midwestern and Southern jurisdictions, where political regulations range from a felony charge in Indiana for contributing to campaigns to no restrictions at all in Illinois. "In some states, employees and executives are not permitted to make political contributions but I'm not aware of any restrictions on employees running for public office in any state," she says. While Gormley says the time isn't right for pushing for a change concerning the political restrictions, he says he goes the extra mile to represent casino employees. "It's my job to be the surrogate for the industry, and I'm not just giving lip service to that job," he says. "We're focused on the problems of people on the ground. We want to make Atlantic City and Atlantic County places where people want to live; places where you want to invite friends and relatives to come visit."

By Roger Gros

Roger Gros is publisher of Casino Connection and Global Gaming Business, a the industry’s leading gaming trade publication. Prior to joining Global Gaming Business, Gros was president of Inlet Communications, an independent consulting firm. He was vice president of Casino Journal Publishing Group from 1984-2000, and held virtually every editorial title during his tenure. Gros was editor of Casino Journal, the National Gaming Summary and the Atlantic City Insider, and was the founding editor of Casino Player magazine. He was a co-founder of the American Gaming Summit and the Southern Gaming Summit conferences and trade shows. He is the author of the best-selling book, How to Win at Casino Gambling (Carlton Books, 1995), now in its third edition. Gros was named “Businessman of the Year” for 1998 by the Greater Atlantic City Chamber of Commerce.

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