McNary takes helm amid shake-up in gaming commission
By Virginia Young
POST-DISPATCH JEFFERSON CITY BUREAU CHIEF
07/23/2006
JEFFERSON CITY -- Gene McNary admits he knew little about Missouri's $1.5 billion-a-year casino industry before he became the state's top gambling regulator.
He has visited only one of the 11 casinos. Even then, he didn't place a bet - he attended a Chamber of Commerce meeting. But he doubts he'll have trouble quickly grasping his new duties.
"Does it take a rocket scientist to learn the gambling games?" he cracked in an interview last week in his new office at the Missouri Gaming Commission's headquarters.
The commission voted 4-0 to hire McNary, a Republican, for the $95,748-a-year executive director's post. McNary, who is best known for his 14-year stint as St. Louis County executive, started work July 17.
He is taking over amid high turnover among senior staff and concerns that politics might play an increasing role in regulation. Gov. Matt Blunt sparked the concerns by juggling the commission during the search for an executive director.
The governor elevated a relatively new commissioner - Noel Shull, a Republican state committeeman - to the chairmanship. The governor also appointed attorney Sam Hais of St. Louis County, who once worked for McNary.
After those moves, acting executive director Steve Johnson, a former highway patrolman, dropped out of the running for the permanent job. Longtime commissioner Ralph Biele quit.
McNary dismisses talk that politics is becoming more intertwined with casino regulation. But he has already taken steps that are bound to fuel the debate.
He told his employees he wouldn't clean house but warned them not to undermine the governor. And he agreed to attend monthly staff meetings held by Blunt's public safety chief, Mark James.
"There's been an arm's-length attitude here toward the Department of Public Safety," McNary said. "I don't intend to have that. I intend to work with (James) and the Legislature and the governor's office."
Former Executive Director Kevin Mullally shunned James' monthly meetings. The public safety department includes the commission for budgeting purposes but has no authority over its day-to-day operations.
Drafters of the law that legalized gaming in Missouri wanted to keep enforcement of the cash-rich casinos separate from politicians, who rely on campaign contributions.
Said one former regulator: "The industry can hand out money like popcorn. And you can't have the governor taking money on one hand and being involved with regulation and enforcement on the other hand."
In response, McNary cites his record - no graft and "no shenanigans" in St. Louis County government during his tenure at the helm. He also has served as county prosecutor and as the nation's chief immigration official.
Democrat Tom Irwin, the gaming commission's first executive director, vouches for McNary.
"There's never been a hint of impropriety about this fellow," said Irwin, who wrote a letter of recommendation for McNary. "I don't think he'll be afraid of anybody with money and power."
With casinos under construction in Lemay and at Laclede's Landing, McNary will shape the development of the industry in the St. Louis area. Both casinos still need state licenses, though they have passed preliminary background checks.
McNary, 70, is tackling a new field at a time when many his age are ready to slow down. Lean and tan, he works out regularly and has aged little in decades. People who meet McNary are struck by his high energy level.
"I hope I'm that strong when I'm 70," said Sen. Chris Koster, a Harrisonville Republican who recently sought McNary's expertise on immigration.
In his first week on the job, McNary buzzed back and forth between Jefferson City and his home in Ladue. He said he would spend about half his time at headquarters and half at satellite offices. He and his wife, immigration lawyer Susan McNary, plan to find an apartment in Jefferson City or Lake of the Ozarks.
One of McNary's first challenges will be filling several key jobs. Johnson, who oversaw enforcement before taking the agency's helm in April, left the day after McNary was picked. At least two other top deputies are retiring.
The exodus has casino executives on edge.
"You're really losing a very significant amount of not only knowledge but understanding of the institutional history," said Troy Stremming, an executive at Ameristar Casinos Inc.
Casino executives are barred from talking to commissioners outside of public meetings, so they rely heavily on staff. Stremming is eager to meet McNary and "see how we can start building a relationship."
One casino official already has a relationship. John Baker, a former GOP operative, now lobbies for Harrah's Entertainment Inc. Baker ran McNary's last campaign, an unsuccessful bid for county executive in 2004.
McNary brushes aside as "nonsense" the notion that Baker has an inside track. McNary said he hadn't seen his former aide since the campaign and "didn't even know Baker was involved with a casino." |
World Casino Directory 
Gambling Forums 
