The former gambling enforcement bureau official who wrote the memo, Robert E. Lytle, started his own successful business as a consultant to some 20 cardrooms around the state, with an ownership stake in two, after retiring from state work as the chief of the gambling enforcement division on Dec. 30, 2007.
Now, the California Attorney General accusation alleges that former enforcement head Robert Lytle arranged to go to work for a company that owned a San Jose cardroom while he was still on the state payroll in 2007. That cardroom is now at the center of an investigation by state regulators who say the current owners hid millions of dollars in profits through a maze of companies over the past several years.
Watchdog reporter for U T San Diego, Greg Moran, reports that the former head of gambling enforcement in California wrote a legal opinion letter to two Cardroom lobbying groups just 10 days before he left state employment — a letter that has purportedly proved to be a boon to Lytle’s forthcoming new clients as a consultant after leaving the bureau — the very cardrooms he previously regulated and oversaw regarding enforcement of California’s gambling rules and regulations.
The Lytle memo reportedly reinterpreted a requirement that games be operated as play among amateurs with rotating responsibility as dealers, as opposed to the faster play and higher stakes allowed by professionalized dealers serving as the bank.