Lt. Gov.-elect calls for state to diversify its economy

Monday, Nov. 9, 1998 | 2:07 a.m.

Lorraine Hunt said Nevada's economy is too dependent on the casino industry and must diversify for the state to continue to prosper.

Wall Street analysts have estimated that California tribal casinos could take as much as $425 million in annual casino revenues, or about 5 percent of Nevada's 1997 total.

"That's part of our problem because we are so dependent upon that one industry," said Hunt, a Republican elected to Nevada's No. 2 post last week.

That same day, California voters overwhelmingly supported a ballot measure to legalize Indian gaming in the state, setting the stage for possible legal challenges from Nevada casino interests that question the measure's constitutionality.

"Obviously, we have a long way to go," Hunt said. "We'll be attempting to fight it as much as we can. It is a real threat if it continues and becomes a reality."

The initiative legalizes California's 41 tribal casinos, 30 of which were operating without the required permission of the state's governor.

Supporters of the measure argued it was needed to protect the financial well-being of the Indian tribes that operate casinos in the state.

"It means more competition, an imminent threat on our border," said Hunt, who as lieutenant governor will head Nevada commissions on tourism and economic development. "It's already hurt us in Laughlin."

Observers believes 17 Indian casinos in Arizona, as well as those in California have cut into the number of visits to Southern Nevada casinos by residents of the two states. Yearly, an estimated 7.5 million people, or one of four Las Vegas visitors, travel by auto to Southern Nevada.

"That could be drastic for our tax structure," Hunt said of the lost business, noting that more than 50 percent of Nevada's tax revenues are drawn from the casino industry.

Hunt, a Clark County commissioner who is chairwoman of the Las Vegas Convention and Visitors Authority, points to several possible methods to diversify the state's economy.

She said Southern Nevada must do a better job of luring light manufacturing and industrial parks, while the Nevada Test Site must be used to attract industry.

She also said some casino executives must shed their anti-diversification attitude.