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Former Nevada Regulator Hired by Slot Manufacturer

Former Nevada Gaming Control Board Chairman Steve DuCharme was hired as a consultant by slot maker WMS Gaming just days after the expiration of a one-year ban against his hiring for any job in the industry he regulated for nearly a decade.

DuCharme, 54, served on the state panel responsible for policing and taxing the casino industry after a 20-year career as a Metro police officer.

He retired from the control board on Jan. 2, 2000 after nine years with the state agency. Nevada law prohibited him from taking a gambling-industry job until Thursday, completing a state-mandated one-year prohibition against such a move for former regulators.

DuCharme said Monday that his new role extends beyond his regulatory knowledge.

"I look forward to consulting with WMS senior management on strategic matters including growth and expansion opportunities as well as on regulatory matters," DuCharme said. "I had seen that WMS was committed to its compliance efforts and had a professional compliance committee."

He declined to disclose his salary but said the contract was open-ended with either party able to end the relationship at any time.

The company broached the subject of consulting for WMS in December, and DuCharme signed an agreement with the company last week.

DuCharme's move from regulating the gambling business to working for it continues a practice followed by several other control board members.

His predecessor at the helm of the control board, Bill Bible, now runs the Nevada Resort Association, the casino industry's Carson City lobbying arm.

DuCharme's wife, Patty Becker, was a control board member from 1983 to 1984 and is now the general counsel for the bankrupt Aladdin megaresort.

New Jersey lawmakers recently failed to pass legislation which would have reduced from two years to one year the cooling-off period for most state gaming officials.

The New Jersey Assembly voted last month to ease rules that would allow most gaming regulators to work for casinos just one year after leaving their jobs, but the bill wasn't voted on by the state Senate.

Opponents of the proposed New Jersey change argued that allowing regulators to move into casino-industry positions after only one year would create an appearance of rulemakers giving favorable treatment in exchange for future employment.

DuCharme said WMS wasn't involved in any contentious regulatory matters during his tenure as chairman of the control board. He was appointed to the control board in 1991 by then-Gov. Bob Miller. DuCharme was named chairman in August 1998, also by Miller, succeeding Bible.

DuCharme also served a term as chairman of the International Association of Gaming Regulators from 1999 to 2000.

WMS executives cited DuCharme's regulatory acumen and industry knowledge as keys to the decision to engage him as a consultant.

"Steve's expertise on gaming regulatory matters is a big asset," WMS Industries Chief Financial Officer Scott Schweinfurth said. WMS Gaming is a subsidiary of WMS Industries.

DuCharme will advise WMS Industries Chief Executive Officer Brian Gamache on compliance issues, assisting two other former regulators the company employs to run its compliance program.

He'll also advise top management on strategic growth opportunities.

Dave Satz, a former New Jersey assistant attorney general, and Donna More, a former first chief legal counsel for the Illinois Gaming Control Board, join Gamache on the company's regulatory compliance committee.

WMS, the second biggest U.S. slot maker, reported $263.8 million in total revenue for the 12-month period ending June 30.

Reno-based International Game Technology controls about 65 percent of the U.S. market; the WMS share is estimated at 5 percent to 10 percent.

DuCharme said his contract with WMS has several exclusivity provisions, and noted that it would also probably be a conflict of interest for him to consult for another slot maker.

He would be allowed, he said, to consult for a casino operator.

"My door is open," he said with a chuckle, noting that his consulting work for WMS won't be a full-time occupation. "This is not a daily job."

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