Fed panel changes worry state officials

Stung by the abrupt resignations of key staffers, the National Gambling Impact Study Commission faces a new credibility crisis in the middle of its congressionally mandated mission.

Nevada congressional leaders, casino industry lobbyists and even some commissioners are voicing concerns that the staff desertions are freeing up the chairwoman of the nine-member panel to pursue an anti-gaming agenda.

"We're heading back in that direction," said Wayne Mehl, Washington lobbyist for the Nevada Resort Association.

Added Nevada Rep. Jim Gibbons: "This is not a good development. This is the bellwether of the agenda of the anti-gaming establishment."

A year ago, as the commission launched its hearings in Washington, Sens. Harry Reid and Richard Bryan, both D-Nev., accused Chairwoman Kay James of steering the panel on an anti-gambling course.

James, an administrator at Regent University founded by television evangelist Pat Robertson, is considered an emerging leader in the religious right, which is spearheading the anti-gambling movement.

She could not be reached for comment this week.

But amid the criticism last year, James vowed to conduct an objective study of the industry.

Last November, she found Nancy Mohr Kennedy, a veteran Washington bureaucrat, to serve as executive director.

Kennedy earned the respect of most of the commissioners, including those supporting the casino industry, for her even-handedness in running the panel's daily affairs.

But without warning late last month, Kennedy resigned for "personal reasons."

This week, two staffers hired by Kennedy -- researcher Allison Flatt and spokeswoman Amy Ricketts -- let it be known they were following their former boss out the door. Both found other jobs.

Kennedy has not explained her decision to leave. But there are suspicions among commissioners that friction had developed between her and James.

Some believe Kennedy was unwilling to toe the anti-gaming line pushed by Commissioner James Dobson, the most ardent industry critic on the panel.

Dobson, said to wield much clout with James, has become one of the most influential forces in the Christian right. His syndicated radio and television shows reach millions of religious conservatives across the country.

After Kennedy's resignation, James moved quickly to install her research director, Timothy Kelly, a political crony with ties to Dobson's organization, as acting executive director.

Kelly's appointment bypassed Deputy Director Martha Roberts, who ranked a notch above Kelly on the commission's 10-member staff. Roberts was hired by Kennedy.

Bryan said Tuesday he's worried that there might have been an "unspoken agenda" to supplant Kennedy with someone close to the anti-gamers.

"I think all of us had some comfort in Nancy Kennedy as a person who had not aligned herself with either pro-gaming or anti-gaming factions," Bryan said.

"My concern is that we're going to swing from the middle to the far right. We certainly don't want to have the commission launch a religious crusade against gaming."

This morning, Kelly pledged from Washington to proceed with the study in an even-handed manner.

"Just watch us," Kelly said. "You will find that the research agenda will not change one iota. We are committed to producing a data-based report that will be fair, objective and balanced.

"We're not interested in slamming one side or the other," he added. "Our intention is to let the facts speak for themselves."

Still, last month, on an advance trip to Las Vegas to prepare for the commission's November meeting, Kelly made local and state officials very nervous.

He appeared more interested in the downside of gaming here than its successes. High on his list of subjects were concerns about problem gambling and neighborhood casinos.

Kelly insisted he never intended to rattle officials here.

But that didn't sway Gibbons.

"I'm not comfortable with Mr. Kelly," Gibbons said. "I'm not comfortable with his connection to the anti-gambling movement."

The Rev. Tom Grey, one of the nation's leading gaming critics, suggested talk of the staff turmoil is an attempt by the casino industry to discredit the commission.

"Anyone who's pushing the line that things are not looking good is worried about the commission's final report," said Grey, executive director of the National Coalition Against Legalized Gambling.

Grey said James has "bent over backwards" to ensure that the commission's hearings have been fair and open.

Bryan, meanwhile, sent a letter to James late Tuesday, urging her to discuss the staff departures next week when the panel meets in San Diego and Tempe, Arizona.

"The public explanation that these developments are standard operating procedure with congressional commissions is not the case," Bryan wrote. "This commission is barely midway through its term."

Gibbons joined Bryan in calling for a public discussion next week.

"The commission members and the public deserve to know the reason for the high turnover in key personnel," Gibbons said.

At least one commissioner, Nevada Gaming Control Board Chairman Bill Bible, said Tuesday he was worried that the resignations might affect the panel's ability to complete its study by next June.

"I would certainly hope that this would not cause the commission to miss the deadline that Congress has imposed for our report," he said.

A search for a new executive director, meanwhile, is likely stop at Kelly's doorstep.

Commissioners expect James either will nominate Kelly for the job permanently or leave him in the post on an acting basis for the remainder of the panel's work.

Despite concerns about his leanings, there isn't much opposition to Kelly this late in the game.

Frank Fahrenkopf, president of the American Gaming Association, the industry's Washington lobby, said next week's commission hearing will be critical.

"This meeting is very important to see whether or not the balance that I think most people felt had been achieved by staff is still there," Fahrenkopf said.

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