House shuffle may aid gaming

Tuesday, Dec. 22, 1998 | 11:01 a.m.

Casino leaders are pleased that Rep. Dennis Hastert, R-Ill., has surfaced as the top choice to become speaker of the U.S. House of Representatives.

Hastert, expected to be elected Jan. 6 when the new Congress convenes, comes from a district that has two successful riverboat casinos.

His district, just west of Chicago, has had a positive experience with gaming, in stark contrast to the troubles that have plagued the industry in the home state of just-resigned Speaker-elect Bob Livingston of Louisiana.

"The industry certainly is more comfortable with Mr. Hastert as speaker," one congressional source said.

Like many in Washington, Hastert's meteoric rise to power has caught the industry by surprise.

"We know of no position Denny Hastert has taken that would indicate he's opposed to gaming in any way," Frank Fahrenkopf, president of the Washington-based American Gaming Association, said today.

Another industry source added: "It certainly can't be any worse than what would have been under Livingston. He seems like a guy we can work with, but obviously we don't know everything about him yet."

Earlier this year, Hastert was one of a number of congressman who signed a letter circulated by the AGA urging the IRS not to implement a policy of taxing free meals that casinos give to employees.

Federal Election Commission records show Hastert is not opposed to taking campaign contributions from gaming. He received a $1,000 donation from Harrah's Entertainment Inc. in May 1997 for his most recent campaign.

Whereas gambling in Louisiana has been tarnished by allegations of corruption and hidden mob influence, the industry has for the most part pumped up the Illinois economy and provided new jobs.

Riverboat casinos play key economic roles two cities, Elgin and Aurora, along the Fox River in Hastert's district.

In recent years, as gambling has flourished in Elgin, public officials there have become cheerleaders for the casino industry.

Last May, in testimony before the National Gambling Impact Study Commission, Elgin Mayor Kevin Kelly talked about the positive impact the Grand Victoria casino has had on his community. Circus Circus Enterprises is a 50 percent owner of the 30,000-square-foot casino.

Elgin Chief of Police Charles Gruber has been one of gaming's strongest supporters among members of the law-enforcement community. He has appeared with Fahrenkopf at news conferences touting the industry at federal study commission hearings across the country.

Hastert, who came to Congress in 1987, is said to be a protege of former House Minority Leader Bob Michel, R-Ill., a moderate who enjoyed good working relations with the Democrats.

"He's a conservative, but all reports are he likes to be practical and work things out," Wayne Mehl, the Washington lobbyist for the Nevada Resort Association, said.

Another Capitol Hill insider said Hastert has the potential to be a healing force in Congress.

"He's respected in a bipartisan manner," the insider said, speaking on condition of anonymity.

Hastert also is said to be close to House Majority Whip Tom DeLay, R-Texas, who Democrats view as the GOP's new leading ideologue in the absence of outgoing Speaker Newt Gingrich.

But as with Gingrich, the casino industry has established close ties to DeLay, who has been to Las Vegas several times in the past couple of years on Republican Party fund-raising trips.

Next year will be a crucial one for the casino industry. The Gambling Impact Study Commission is set to deliver its report to Congress in June.