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The Chip Board Archive 02

Louisiana casino approved amid allegations of corruption

BATON ROUGE, La. (AP) -- Louisiana regulators ignored a growing scandal to revive a long-stalled plan to put a casino next to New Orleans' historic French Quarter.

The Louisiana Gaming Control Board on Tuesday unanimously approved resuming construction immediately on what was once touted as one of the world's largest casinos. The finished product tentatively would open around Nov. 1, 1999.

The board declared a partnership that includes gambling giant Harrah's Entertainment Inc. is suitable to run a gambling operation in the state.

The partially-finished casino was abandoned amid bankruptcy proceedings in 1995.

State Rep. Tony Perkins, R-Baton Rouge, had urged Gov. Mike Foster to get the board to delay a decision until a federal investigation of former Gov. Edwin Edwards has run its course.

Foster refused, stressing that the New Orleans casino project had nothing to do with an investigation that centers around the riverboat casino industry.

Three of Edwards' friends and business associates have made plea agreements with the federal government, admitting they were involved in plans to pay the former governor to secure approval for riverboat casino projects. Edwards has denied any wrongdoing while acknowledging he expects to be indicted.

Gambling board approval came only after the board received assurances from a company executive that no one in or out of state government had demanded money to smooth the way.


Copyright 2022 David Spragg