Gamers spending $85 million on election measures

Brett Pulley

Monday, Nov. 2, 1998 | 11:38 a.m.

Facing vital ballot initiatives and continuing to fight for increased acceptability across the country, the gambling industry and its supporters this year have contributed about $85 million to influence Tuesday's election.

From the more than $71 million being wagered on a California ballot measure that could legalize the state's tribal casinos, to the thousands more being spent in an effort to oust South Carolina's anti-gambling governor, contributions from casino interests are increasingly affecting the nation's politics.

As gambling revenues have grown around the country, the industry's money has spread far beyond the boundaries of Nevada, the nation's gambling capital, and its contributions have increased to members of both parties.

According to an analysis conducted for The New York Times by the Campaign Study Group, a research company in Springfield, Va., contributions from casino companies to candidates for national office and to political parties totaled $4.9 million from Jan. 1 to the second week in October, with a slightly larger share going to Republicans.

Of that amount, the largest party recipient was the National Republican Senatorial Committee, which received $925,000, and the largest amount given to an individual candidate went to John Ensign, the Republican candidate for the Senate from Nevada.

By comparison, federal contributions to candidates and parties from the gambling industry are slightly more than half of the amount that the tobacco industry has poured into the system, according to the analysis done for The New York Times.

"Both political parties are obviously heavily dependent on contributions from the gambling industry, which is having a major influence on Washington," said James Dobson, a member of the National Gambling Impact Study Commission, a congressional commission studying the social and economic impact of gambling. "I'm especially concerned about the influence of that money on the GOP," added Dobson, who is also president of the nonprofit organization Focus on Family and opposes gambling. "The gambling industry has bought and paid for the politicians," he said.

In state races, gambling industry dollars are also having a huge impact. In Missouri, voters will decide whether 11 of the state's 15 casinos may continue operating slot machines although they do not sit on the Mississippi or Missouri Rivers as state law stipulates. If the amendment fails, casino companies say they will have to close. The casino industry is expected to spend about $8 million blanketing the state with advertisements, while opponents of gambling are fighting with less than $200,000. Still, polls show the outcome could be close, as Missouri residents, who legalized gambling in 1992, still appear to be unsure about whether they want to keep casinos around.

"It's too close to call," said Joe Coccimiglio, an industry analyst at Prudential Securities. "If we don't get a good voter turnout, it could be difficult."

In Maryland, the Republican gubernatorial candidate, Ellen Sauerbrey, received a recent boost to her campaign when Hilton Hotels Corp., the owner of casinos around the country, contributed $250,000 to aid the Republican National Committee's attacks on her Democratic opponent, Parris Glendening, according to a report in The Washington Post. Glendening, the incumbent in the race, has opposed installing slot machines at the state's horse tracks. Hilton owns a horse track in Maryland.

California's Proposition 5, which would legalize and likely lead to expansion of the state's Indian gambling business, is being vehemently opposed by Nevada casinos, which receive an estimated 30 percent of their business from California residents. But the spending in the campaign has been large on both sides, with tribal interests matching the deep pockets of Nevada's casino companies. Recent polls show the proposition is likely to pass, but a lengthy court challenge could follow.

Gov. David Beasley, R-S.C., has found that his opposition to establishing a state lottery and his attacks on the state's mushrooming $2.5 billion-a-year video poker industry have caused the gambling industry's dollars to pour in for his Democratic opponent, former state Rep. James Hodges. The largest video poker operator in the state, Fred Collins, has spent millions on newspaper, radio and television advertisements urging voters to "Ban Beasley." And to make matters worse for the governor, The Republican Governors Association, whose members receive significant support from gambling interests, recently retreated on a plan to spend $500,000 for advertising on Beasley's behalf.

Arizona voters are expected to approve a ballot measure that would extend the operation of the state lottery through July 2003. Without the passage of Proposition 304, the lottery would end in July, but despite some opposition from religious groups, the measure is expected to win easily and, consequently, campaign spending has been minimal.

According to the analysis by the Campaign Study Group, the largest individual contributor to federal candidates and parties was Mirage Resorts, which gave $327,000 of a total of $442,000 to Republicans. Mirage, a Las Vegas casino company, has projects planned for Mississippi and New Jersey.