Columnist Jeff German: Likely Reid-Ensign battle splits gamers

Saturday, Aug. 23, 1997 | 3:51 a.m.

THE budding race between Sen. Harry Reid and Rep. John Ensign could become the most divi sive campaign in Nevada history.

Now that Ensign, a two-term Re publican, has said he's "90 percent leaning" toward a 1998 run against the senior Democratic senator, a lot of big-shots in the casino industry will have to choose sides.

Many are uncomfortable about it. Early indications are that Ensign won't be getting the heavy industry backing he has enjoyed in his House races.

Ensign will continue to have his father Mike Ensign, vice chairman of the influential Circus Circus Enterprises, in his corner. But after that, the depth of his gaming support is unclear.

Mirage Resorts Chairman Steve Wynn, who helped Ensign get elected and land a critical seat on the House Ways and Means Committee, is among those in a tough spot. Wynn has backed Reid, the No. 3 man in the Senate's Democratic leadership, for years and will be hard-pressed not to do it again.

Wynn's gaming attorney, Frank Schreck, one of the state's premier Democratic political fund-raisers, also is in a jam. Though he grew up with Reid in Henderson, Schreck's law firm also works for Mike Ensign.

Many casino executives, meanwhile, are looking to see how Wynn, rated the state's second most influential powerbroker in a 1996 SUN survey, handles a Reid-Ensign campaign before making their own commitments.

MGM Grand Chairman Terry Lanni, however, isn't among them.

Lanni, whom Ensign recommended for the National Gambling Impact Study Commission, says without a doubt that he'll be helping Reid.

The MGM boss says he told Reid and Sen. Richard Bryan, D-Nev., years ago that he would support them as long as they wanted to remain in the Senate.

"I made those commitments long before I met John Ensign and certainly before he was elected to the House of Representatives," Lanni says.

But he adds that he has a lot of respect for Ensign and Rep. Jim Gibbons, R-Nev., and would back both if they chose to run for re-election.

Another prominent gaming executive, Circus Circus Vice President Mike Sloan, also won't be going to bat for Ensign.

Sloan, the gaming giant's veteran political operative who's well connected inside the Beltway, says he's staying out of the fray.

"I'm not involved in this race," says Sloan, who works for Ensign's father. "Harry has been a lifelong friend of mine. As long as I can recall, we've been friends."

But Sloan's political fund-raising partner, Dr. Elias Ghanem, confirms he'll back Reid.

Ghanem crossed Democratic Party lines to help Ensign in 1996, and along with Schreck, he's working for Republican gubernatorial candidate Kenny Guinn this year. But forced to choose between Reid or Ensign, going with the senator, his good friend, is a no-brainer for Ghanem.

Over the years, Ghanem, Sloan and Schreck have been the state's most formidable Democratic fund-raising team. A Reid-Ensign race could complicate their relationship.

Reid's strength within the casino industry, meanwhile, was demon strated last month when virtually every Strip casino boss showed up at Ghanem's country club home to have lunch with the president. The unprecedented event was arranged by Reid, whom friends say has been more active than ever campaigning in anticipation of a race with Ensign.

"Clearly, there's going to be some strong gaming support for Harry no matter who his opponent is," says Nevada Democratic Party Chairman Paul Henry. "He's been a strong advocate for the industry over the years."

Henry sees the industry lining up behind Reid as a sign it believes Ensign should not abandon his Ways and Means Committee seat, which has become crucial in gaming's battle to survive intense scrutiny in Washington.

Still, Ensign can't be taken lightly. He has won two terms in the 1st Congressional District even though it has nearly 39,000 more registered Democrats than Republicans. In 1994, as a newcomer to politics, he knocked off Reid's close friend, Rep. Jim Bilbray, a four-term Democrat.

Top Republicans view Ensign's candidacy as the best chance in years to regain a Senate seat. They are eager to do battle with Reid.

And Ensign, who swept into office during Speaker Newt Gingrich's Republican revolution, seems hardly discouraged by Reid's ability to call in markers from the casino industry. That's because Ensign has his own to collect as a result of his dealings on Ways and Means.

Indeed, many casino bosses may be forced to give to Reid and Ensign as the race intensifies. The dilemma has prompted one casino executive to quip: "A lot of people are hoping John won't run against Harry."

Ensign's conservative leanings also will play well in Northern Nevada, where Reid traditionally has had trouble with the voters.

But first, Ensign must get through what could be a tough Republican primary.

Bruce James, a retired newspaper publisher from Lake Tahoe, already is making noise in the race. He has committed $1.1 million of his own money to his campaign and is willing to spend whatever it takes.

Even more significant, James appears to be acquiring mainstream GOP support in the North. Gibbons, for example, is hosting a Sept. 6 fund-raiser for James with former President Ford in Incline Village.

In recent weeks, Gibbons also has been making the rounds with James at Republican functions in Northern Nevada.

But the congressman's top Washington aide, Mike Dayton, insists Gibbons doesn't plan to endorse either Republican in the race. He considers both friends.

James, however, may have the upper-hand in the friendship department. Dayton acknowledges that James and his wife contributed $4,000 to Gibbons when he ran for Congress in 1996.

As for the Ford fund-raiser, Dayton says Gibbons merely is lending his name to the event out of respect to the former president. "If President Bush comes to Las Vegas for Ensign, Jim will do the same thing for him," Dayton says.

With Reid working the casino industry like never before, wooing Gibbons to his campaign may be the least of Ensign's worries as he heads into the 1998 political season.