Two California Officials Recuse Themselves from Regulatory Proceedings

Two officials of the California Gambling Control Commission—including its chairman Richard Lopez and executive director—last week chose to recuse themselves from regulatory proceedings in which a former associate who once ran the state’s Bureau of Gambling Control is accused of violating gambling regulations.

Two top officials have recused themselves from a regulatory proceeding involving the gaming license of a former California Bureau of Gambling Control chief who became an advisor to Casino M8trix in San Jose.

On February 25 California Gambling Control Commission Chairman Richard Lopes and executive director Tina Littleton recused themselves from any proceedings involving Robert Lytle, who is a former employee of M8trix as well as former top gambling regulator.

Last yea the Bureau of Gambling Control alleged that Lytle violated the state’s gaming regulations and tried to interfere with an ongoing investigation of his client, M8trix. The bureau seeks to strip Lytle of all state gambling licenses.

Lytle stopped working for the bureau eight years ago and worked as a consultant for a number of card rooms, including M8trix.

Many observers of the gaming world in the Golden State point to this case as a poster child for the problem of regulators going into the businesses they once regulated.

Lytle insists that allegations against him are that, no more than allegations. He asked to have two temporary ownership licenses extended and to take that time to tell his story at a scheduled administrative hearing in October and prove his innocence.

“There is another side to the story … Let me have my say and my due process at the evidentiary hearing,” he told the commission.

The commission granted Lytle’s request for an extension.

Lopes recused himself from the proceedings because she was working under Lytle during the period when the misconduct was alleged. She was also living with the former bureau agent who may have been the target of Lytle’s alleged attempt to obtain information about an ongoing investigation of M8trix.