THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Wednesday, July 20, 1994 TAG: 9407200413
SECTION: LOCAL PAGE: B4 EDITION: FINAL
SOURCE: BY DAVID M. POOLE, STAFF WRITER
DATELINE: RICHMOND LENGTH: Medium: 52 lines
A lobbyist for a casino company disclosed to the state that he would have gotten a bonus if the legislature had legalized riverboat gambling this year, an incentive arrangement prohibited by Virginia law.
C.E. ``Doug'' Douglas, a veteran Richmond lobbyist retained by Bally's Casino Holdings Inc. of Chicago, reported that he was paid nothing for the long hours he lobbied the General Assembly on the riverboat issue.
But Douglas also reported that he ``would have received bonuses'' if the legislature had passed a bill allowing floating casinos to ply Virginia's waters. ``Bill was killed,'' he wrote last month in a routine form filed with the state.
Trouble is, Virginia statutes deem it ``unlawful for any individual to lobby for compensation which is dependent in any manner upon the passage or defeat of any proposed legislation.''
``Rumors are fairly strong that this goes on frequently, but it's never been in writing,'' said Julie Lapham, executive director of Common Cause of Virginia, a citizen watchdog group.
Foes of floating casinos seized upon Douglas' disclosure form as confirmation that corruption follows legalized gambling, which is an increasingly powerful lobbying force. Riverboat enthusiasts alone spent $358,914 this year in lobbying efforts at the General Assembly.
``The corruption we've seen out there is definitely tied into the legalized gambling industry as a whole,'' said Scott Maddera, a consultant to Virginia Deserves Better, an anti-casino group.
Douglas could not be reached for comment. But his lawyer said the financial disclosure was an honest mistake caused by confusion over new reporting requirements for lobbyists that went into effect this year.
``It was simply a misguided attempt to make a complete disclosure,'' said David Otey, a Williamsburg lawyer.
Otey said that Douglas used the term ``bonus'' as shorthand for an arrangement in which, had riverboat gaming passed, Douglas could have bought an ownership stake in a joint venture between Bally's and Bay Entertainment Corp. of Williamsburg.
``There was no bonus,'' Otey said. ``He did stand to gain if riverboat gaming came to Virginia.''
Otey said Douglas would file an amended disclosure form with Secretary of the Commonwealth Betsy Davis Beamer.
Lapham, of Common Cause, said she would write a letter asking Beamer to look into the matter. by CNB