Tourism officials warned of opposition to the industry

Robert Macy

Tuesday, Dec. 15, 1998 | 1:58 a.m.

The spread of legalized gambling across America has created "fertile soil" for those who oppose the industry, tourism officials were told Tuesday.

"Bill Bennett was right when he said those who supported gaming outside of Nevada and New Jersey were going to reap the consequences," said John Wilhelm, president of the Hotel Employees and Restaurant Employees International.

Wilhelm referred to warnings years ago by Bennett, former chairman of Circus Enterprises Inc. and now owner of the Sahara Hotel and Casino. Wilhelm recalled Bennett had warned that the spread of legalized gambling would become "fertile soil" for the industry's opponents.

The union chief made his comments at the 15th annual Governor's Conference on Travel and Tourism.

Frank Fahrenkopf Jr., president of the Washington, D.C.-based American Gaming Association, echoed the sentiments.

"The remarkable growth of gaming has not only brought widespread acceptance, but has, unfortunately, also spurred a vocal minority that is morally opposed to gaming," Fahrenkopf told the conference. "As the next millennium approaches, we will have to remain vigilant of the efforts of these moralists - a minority that has emerged as a national political force."

Casinos, either state-regulated or American Indian, now operate in 26 states, with lotteries in 37 states and pari-mutuel wagering in 42 states, Fahrenkopf said. Only three states - Utah, Hawaii and Tennessee - have no form of legalized gambling.

J. Terrence Lanni, chairman of the MGM Grand Hotel-Casino in Las Vegas, said although casino companies are expanding, the growth of Indian gambling and state lotteries is also drawing added focus on the industry.

Lanni and Wilhelm are members of the National Gambling Impact Study Commission, a federal panel created by Congress to study the sociological and economic impact of gambling on America.

Although the commission is comprised of both gambling industry supporters and opponents, there is "much more that we agree on than disagree on," Lanni said.

The commission is scheduled to issue a report to Congress next June and problem or compulsive gambling will likely be a key issue, Lanni and Wilhelm said.

Problem gambling "permeates all areas," whether it be a card club in California, a racetrack in Florida, an Indian reservation in Minnesota or casinos in Nevada and New Jersey, Lanni said.

"I don't think we've yet put our best foot forward on the issue of problem gambling," Wilhelm said.

Fahrenkopf said the casino industry is leading the way in fighting the problem, citing the formation of the National Center for Responsible Gaming two years ago. He said the center awarded nearly $1.5 million in its first year to study problem gambling.

"The problem gambling argument will be used to challenge every positive argument" about the industry such as job creation and economic stimulus, Wilhelm said.

Asked if casinos were using arcade games to woo new generations just as the tobacco industry did with Joe Camel, Lanni and Wilhelm said anti-gaming forces were going to seize on such conceptions to make their case against the industry.

Lanni said state lotteries were among the worst in promising gamblers quick riches, citing billboards in depressed areas of Southern California that promise winning the lottery as "your way out."

Wilhelm said he was concerned that the commission did not fully understand the impact Indian gambling could have.

"The growth area of the future is tribal gaming," Wilhelm said. He predicted Indian gambling would "spread into every nook and cranny in America."