Neighborhood casino limits debated

Friday, May 30, 1997 | 11:44 a.m.

The Las Vegas City Council and Nevada Resort Association say it makes sense to restrict neighborhood casinos to preserve residential tranquility.

Some neighborhood gaming licensees, however, are skeptical of a proposed state law they say would produce unfair gaming competition and take decision-making away from locally elected officials.

Senate Bill 208, sponsored by state Sen. Mark James, R-Las Vegas, and co-sponsored by nine other senators, would require certain gaming licensees to go before a vote of the people in order to operate neighborhood casinos. About 75 people attended a Senate Judiciary Committee hearing on the bill Thursday at the Sawyer State Office Building.

The bill wouldn't affect any gaming license approved prior to July 1. Otherwise, no nonrestricted gaming license could be approved if the establishment is less than 1,500 feet from a school, church or zoning district where residential use is permitted.

If the establishment is at least 1,500 feet but less than 2,500 feet from such areas, a nonrestricted license must be approved by voters who reside in precincts within 2,500 feet of the establishment. Exceptions to the ballot requirement include an establishment that is within 2,500 feet of three other casinos, such as along the Strip or portions of Boulder Highway.

James, who chairs the Judiciary Committee, and other proponents of the bill say the new restrictions are necessary because of the rapid increase of neighborhood casinos in the Las Vegas Valley in the past 10 years. Henderson is an example of a city where the issue of neighborhood casinos has become a major point of contention in recent mayoral and City Council elections.

"There need to be some limits on where casinos are located," James said. "We are certainly aware from talking to our constituents that this is something we need to do."

Las Vegas Mayor Jan Laverty Jones said casinos ought to be limited to the corridors that attract tourists. Jones referred to neighborhood casinos as "convenience gaming" that diverts revenues that would otherwise go to goods and services.

"I don't think it's a benefit to families and children," Jones said. "It's also a detriment to diversifying our economy. We need to move gaming out of our neighborhoods, and confine it to resort corridors."

Robert Faiss, one of Nevada's top gaming attorneys and counsel for the resort association, said the hotel lobby supports the bill as a way of preserving neighborhood quality of life.

"In short, we believe the concept of the bill is commendable," Faiss said.

He said, however, that some amendments would be needed because the current bill would prevent certain undeveloped Strip property from being approved for casinos. That's because much of the Strip is zoned for residential as well as gaming use.

Others who spoke in favor of the bill included Las Vegas City Councilmen Matthew Callister, Arnie Adamsen and Gary Reese. But concerns also were expressed.

Barry Lieberman, attorney for Coast Resorts, said the gaming company has purchased land in Summerlin and on North Rancho Drive with the understanding that that property could be developed for casinos. He said it would be unfair if the bill prevented such establishments from becoming reality.

Another section of the bill that limits restricted gaming licenses to no more than 15 slot machines drew criticism from Village East Drugs owner Russ Zuardo because drugstores were excluded from the list of qualified businesses under that category. He said he has maintained gaming licenses for 23 years without problems.

Ron Coury, a gaming operator who has been at the center of political controversy in Henderson, said he opposed the bill because it would take decision-making away from locally elected officials. He has tried unsuccessfully to increase the number of slot machines he can have at his Thirstbusters Casino in Henderson over the objections of numerous area residents.

But Coury said he and other neighborhood casino operators seek only to increase the number of gaming devices they may have without physically expanding their buildings.

"We haven't asked to become full-fledged casinos and hotels," Coury said. "I don't support changing zoning."

Proposed amendments to the bill will be considered when a Judiciary subcommittee of James and fellow Sens. Jon Porter, R-Boulder City, and Valerie Wiener, D-Las Vegas, meets in a work session Thursday in Carson City.