California Clashes

Complaints about conflicts of interest within the California regulatory system continue. Richard Schuetz (l.), a former casino executive who sits on the California Gambling Commission, is the focus of the attention as he points out “irregularities” in regulatory oversight in the state.

Richard Schuetz doesn’t enjoy his job. As a member of the California Gambling Commission, he takes his job seriously, and uses his past experience as a casino executive as a guide. When Schuetz sees something that doesn’t seem right, he points it out. And he’s seen plenty that isn’t right lately.

The most recent incidents surround former regulatory officials who set up a consulting business, as reported by the San Diego Union Tribune. Robert Lytle, a former chief of the commission, retired in 2007 and immediately set up his business. He brought on another former agent, James Parker, who is the live-in partner of commission executive director Tina Littleton.

Schuetz has pointed out an increasingly incestuous relationship between Lytle’s firm and the commission. Last July, a card room in the Sacramento suburb of Citrus Heights came before the commission with a request to add gaming tables. The club was represented by Lytle’s firm, and Lytle also has a small ownership interest in it.

The issue was complicated because commission lawyers believed that city ordinances conflicted with the request for additional tables, and suggested that the ordinances be amended to allow it. But after a lengthy discussion, the board OK’d the tables by a 3-1 vote, with Schuetz dissenting (something that happens on a regular basis).

Coincidentally (or not) the grand opening of the expanded club occurred that night, which was attended by Commissioner Laura Hammond and Chairman Richard Lopes, who each voted for the measure.

Since then, Lopes and Littleton have recused themselves in matters where Lytle’s firm is involved. But Schuetz says it’s not always clear where his firm is involved and has asked for disclosure of his firm’s involvement in any case.

Last year, Schuetz called the oversight of California’s card rooms “the worst regulated segment” of the U.S. gaming industry.