White House Says Online Gambling Conflict of Interest Ethical

Perino was unable to provide the reasoning used by "ethics officers" to clear Wichterman to work on regulations regarding Internet gambling when his previous employment just weeks before had been as an advocate against online casinos.

The online gambling industry, the Democratic Party, and political observers everywhere are questioning the involvement of a former lobbyist in regulations being established by the Treasury Department. William Wichterman, current Deputy Director of Public Liaison, "has been a source of considerable political pressure to speed this regulation through to finalization," according to Tennessee Representative Stephen Cohen.

The regulations in question will implement the two-year-old UIGEA. Testimony before the Treasury Department this summer brought universal rejection of the law as vague, unworkable, and a threat to the American banking system. These summations came from leaders of finance and commerce, as well as officials from the Federal Reserve and within the Treasury itself.

But suddenly the Treasury has acted, positioning the implementation of the UIGEA to take place one day before Barack Obama's inauguration. Wichterman's influence is under scrutiny due to his employment as a lobbyist until a scant six months ago. As a lobbyist, Wichterman was paid millions by the National Football League to press Congress to campaign against Internet gambling and retain the UIGEA in place, untouched.

After days of rumblings regarding this clear impropriety, White House spokesman Dana Perino admitted that Wichterman and the Office of Public Liaison were involved in the process of finalizing the regulations. But, according to a federal website, that office's duties are planning Presidential briefings, coordinating meetings between the President and other offices, and communicating Presidential priorities to concerned citizens.

There is no mention of assisting the Treasury Department in its duties, nor of crafting regulations enforcing legislation, nor of oversight of online casinos. Perino did not give an example of another instance in which Public Liaison was directly involved in drawing up regulations.

Perino did say, "He (Wichterman) appropriately sought and received clearance from ethics officers to be able to work on this rule. I know our ethics officers to be professionals who know the law and the guidelines inside out."

Perino was unable to provide the reasoning used by "ethics officers" to clear Wichterman to work on regulations regarding Internet gambling when his previous employment just weeks before had been as an advocate against online casinos. It was also unclear what, if anything, would be considered an ethical breach by the officials who greenlighted Wichterman's presence on this issue.