A complaint filed late last month against Lady Luck Gaming's Tunica, Miss., operation has been dismissed.

Lady Luck Cape Girardeau Inc. this week became the second riverboat casino operator to vie for a gaming license in Cape Girardeau.

The Cape Girardeau City Council on March 7 will recommend either a $51.2 million proposal by the Boyd Group or Lady Luck's $58.3 million development offer.

Lady Luck officials in Mississippi confirmed Thursday the Mississippi Gaming Commission had determined the Dec. 29 complaint was unfounded. Leah Christopher, a marketing representative for Lady Luck's Cape Girardeau subsidiary, said the ruling assures that Lady Luck's "spotless" reputation will remain intact.

"In its 30-year history, Lady Luck has never been cited or fined by gaming regulators," she said. "You don't have a track record like that and not run an excellent operation."

In the complaint, Paul Harvey, director of the Mississippi Gaming Commission, alleged that Lady Luck Tunica failed to retain videotape recordings of its cashier's cage, operated 41 slot machines that weren't inspected for operation, and operated eight games during December without notice and prior approval of commission.

But Lady Luck officials countered each of the allegations.

Christopher said Lady Luck complied with the surveillance tape requirements and was able to show the commission the tape in question.

In a "facts sheet" compiled by the gaming company, Lady Luck said the second and third allegations also were unfounded.

"The (second) allegation implies that the slot machines were newly acquired for use at Lady Luck Tunica when, in fact, the 41 slot machines already were in use at Lady Luck Tunica," officials said. "The machines simply were moved."

Christopher said Lady Luck Tunica did obtain permission from the gaming commission to move the machines, which were tested to ensure they were functioning properly.

Of the third allegation, officials said the company gave the gaming commission and the Mississippi Tax Commission advance written notice of the change in table games offered, as required by law.

Christopher said that because gaming is a new industry in Mississippi there are bound to be instances when "clarification will be necessary on how to interpret a specific point" of gaming laws.

Andrew Tompkins, Lady Luck chairman, said Thursday he was pleased with the outcome of the investigation.

Lady Luck was not fined, but agreed to pay an administrative assessment to reimburse the commission the costs incurred in conducting its investigation.

When Lady Luck on Tuesday unveiled their proposal for Cape Girardeau's riverfront, Christopher said she was aware of "scuttle-butt" concerning the complaint. But she said then she was confident the matter would be resolved in the gaming company's favor.

Another issue that arose the day after Lady Luck's presentation in Cape Girardeau involved a "preliminary advisory board," comprised of local residents, that was included in its promotion material.

Some of the board members complained afterward that their names on the Lady Luck news releases were seen by many as an endorsement by board members of Lady Luck's proposal.

But Christopher said the inference was unfounded. "There was no implied endorsement," she said. "We know there are people in the committee that have worked on behalf of the Boyd Group, and there are people there who are opposed to gaming."

Christopher said the primary purpose of the committee is to make recommendations on how the city should spend an annual $100,000 contribution that's included in Lady Luck's proposal.

"Obviously, that's only going to be necessary if Lady Luck is granted the license," she said. "We asked them if they'd be interested in serving on that committee. We did not ask them for an endorsement. The idea was simply to have a committee in place so that, if we get the city's approval, we could move forward."

Advisory board members listed on the news release included: Peggy Barringer, chairman of the Riverfest Committee; J. Tim Blattner, chairman of the Cape Mural Arts Association; Ernie Beussink, president of Mid-America Power Distributors; Bernice Coar-Cobb, a faculty member at Southeast Missouri State University; and Bob Drury, president of Drury Co.

Other members are Susan Haugland, director of the center for child studies at Southeast; John Heuer, a member of the YES Group Steering Committee; Hamner Hill, chairman of philosophy and religion at Southeast; Jo Sharp, manager of Famous Barr Co. in Cape; Michael Sterling, president of the local NAACP; Beverly Strohmeyer, executive director of Southeast Missouri Council for the Arts; and Barry Thornton, general manager of Concord Printing.

Some of the committee members reportedly want their names removed from the committee because they fear it implies their endorsement of Lady Luck.

But Christopher said she hopes the misunderstanding will not prompt people to leave the committee.

"The bottom line is some people on the committee may ultimately endorse us, some may be neutral, and some may end up still supporting the Boyd Group," she said. "But the idea is that if Lady Luck should get it, it's important that we have community representation."