Pa. gambling laws debated

HARRISBURG – Louis DeNaples was never far from the discussion as a panel of state legislators on Tuesday debated possible changes to Pennsylvania’s gambling regulations at the Pennsylvania Gaming Congress.

The final session of the two-day gathering of casino operators, suppliers, investors and others with a stake in the state’s new and lucrative entertainment industry asked “what’s needed, what’s next?” in relation to licensing as well as tax rates and competitive issues with venues in other states.

State Sen. Jeffrey E. Piccola, R-Dauphin County, described legislation that would transfer the gaming board’s investigative arm in its entirety to the Office of the Attorney General. That would eliminate the conflicts between agencies that led to information about DeNaples’ alleged relationships with organized crime figures being off-limits to investigators.

Because neither the gaming board nor the investigation bureau are designated as law enforcement agencies, the state police, FBI and other organizations cannot share sensitive information with them.

But, even if DeNaples manages to overcome pending perjury charges, the gaming board will be hard-pressed to return his license, said Joe Weinert, senior vice president of conference sponsor Spectrum Gaming Group.

Regardless of the result, “the specter of organized crime will loom large over his attempt to regain control of the property he built,” Weinert said.

DeNaples’ spokesman Kevin Feeley said Weinert’s opinion is colored because the company did work for a rival for the single gaming license issued in the Poconos.

“They had an interest in the outcome,” Feeley said. That may be even more significant now that Pocono Manor Investors has asked the board to rescind DeNaples’ license and give it to them, he said.

Weinert said Spectrum’s work for Pocono Manor Investors was on a strict fee-for-service basis and ended when the licensing decision was made.

State Rep. Doug Reichley, R-Emmaus, said he doubts the Legislature could intervene in the DeNaples case at this point, even though, “I think the board did make a mistake.”

Reichley said the Gaming Control Board had three reasons to reject DeNaples’ application for a license to operate Mount Airy Casino Resort: his 1978 felony conviction, the board’s concern DeNaples may not have truthfully answered questions posed by investigators and DeNaples’ refusal to turn over a copy of his FBI file.

“I think the gaming board has done a pretty good job with what they’ve had to work with,” Wansacz said. “An allegation doesn’t mean you’re guilty. I think they made the right decisions; they acted appropriately.”

DeNaples was indicted in January by a Dauphin County grand jury on charges he lied to Gaming Control Board investigators about his association with reputed mobsters William D’Elia and the late Russell Bufalino.

His gaming license has been suspended, and the property is under the care of a state-appointed trustee.

Reichley is the primary sponsor of a bill that would give control of background investigations of license applicants to the state Attorney General’s Office. The office would then recommend to the board whether an applicant is suitable.

Jeffrey Gural, chairman of American Racing and Entertainment, an investor in the Sands Bethworks casino under construction in Bethlehem, said Pennsylvania’s investigation into his background was far more comprehensive than what is done in New York, where the company also has gambling interests.

“I can’t imagine being more thoroughly investigated,” he said. Instead, he believes the regulations were crafted to benefit DeNaples.

Piccola, chairman of the Senate State Government Committee, seemed to agree. Earlier in the day he described Pennsylvania’s licensing process as “easy to manipulate and to be greased.”

One thing most of the legislators in the afternoon session agreed upon was that table games are headed for Pennsylvania. The only question seemed to be whether they should be introduced before, during or after changes are made to the overall regulations.

“I think table games are front and center,” Wansacz said. “I think we need to go there” to keep Pennsylvania casinos competitive with other states, although he said introduction should wait until the regulations are changed.

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