Casinos OK with GOP results

Thursday, Nov. 19, 1998 | 11:01 a.m.

The casino industry, despite backing the wrong candidate, remained optimistic Wednesday about the re-election of Rep. Dick Armey, R-Texas, as House majority leader.

Casino leaders, including Mirage Resorts Chairman Steve Wynn, had pushed Rep. Jennifer Dunn, R-Wash., for the No. 2 post in the House, but Dunn lost in the second ballot.

Rep. Jim Gibbons, R-Nev., who had seconded Dunn's nomination, voted with the majority for Armey on the third ballot.

Gibbons, while campaigning for a seat on the influential Ways and Means Committee, had promised Armey he would back him if Dunn couldn't muster up enough votes.

"I don't think the industry will do any worse with Dick Armey in there," Gibbons said after the vote. "I think the industry has a fighting chance. That's all anyone can ask for."

Armey has agreed to be more sensitive to the interests of Nevada and the casino industry, which has found itself under increasing attacks on Capitol Hill, Gibbons said.

Frank Fahrenkopf, president of the Washington-based American Gaming Association, said today the industry is in fine shape with Armey.

"Dick Armey has never been anti-gambling in anything I've seen him do," Fahrenkopf said.

Fahrenkopf, however, said the industry will have to feel out Rep. Bob Livingston, R-La., who was nominated by Republicans Wednesday to succeed retiring Speaker Newt Gingrich of Georgia.

"We'll have to spend some time with the new speaker to find out exactly where he's at because gambling hasn't exactly had a shining moment in Louisiana," Fahrenkopf said.

Wayne Mehl, Washington lobbyist for the Nevada Resort Association, described Armey's re-election as a return to the "status quo."

"It would have been nice if Dunn had won, but we don't consider this a setback," he said.

Mirage Resorts Vice President Alan Feldman added: "The industry still has a lot of issues no matter who's in the leadership. The presence of Armey isn't going to help or hurt us."

Mehl said gaming needs to concentrate more on organizing its clout on a grassroots level.

"We can't depend on the leadership to bail us out on gaming issues," Mehl said. "We have to start working our issues from top to bottom the way they're supposed to be worked."

Some Capitol Hill insiders, meanwhile, questioned the industry's decision to publicly back Dunn over Armey.

"I think that was one of the dumbest things I've ever seen," one well-placed Washington source said. "They backed a real loser who came in third in the balloting. You get no benefit from that. All you do is get Armey mad."

Another knowledgeable source on the Hill said the industry's push for Dunn was "clumsily handled."

"That was a very volatile race, and they should have been a little bit wiser about getting involved," the source said. "It should have been done quietly."

The source said the push to get Gibbons a seat on the Ways and Means Committee also could backfire on the industry.

"They don't want their critics coming out and saying the industry is trying to buy a seat on Ways and Means," the Washington insider said. "They've got to learn a little more finesse in how they deal with these political issues and how they deal with Congress in general."

Gibbons, meanwhile, said he knows he has an uphill battle. There are said to be six House members seeking three open seats. The five others have more seniority than Gibbons, who will be entering his second term next year.

"I'm realistic, but optimistic," Gibbons said.

He added that he appreciates Wynn's support in his quest.

"I'm pleased that Mr. Wynn is calling members he knows personally and encouraging them to support my appointment to the committee," he said.

Wynn, a prominent Republican Party donor, is credited with helping Rep. John Ensign, R-Nev., land a Ways and Means seat in 1994.

Ensign, who opted to run against Sen. Harry Reid, D-Nev., rather than seek re-election, was in Washington today lobbying his House colleagues on behalf of Gibbons.

Gibbons has long been rumored as a potential challenger for Sen. Richard Bryan, D-Nev., in 2000.

But Gibbons said Wednesday he would be more inclined to stay in the House if he got the Ways and Means seat, which is responsible for writing the nation's tax laws.

"It's a very important seat for the people of Nevada," he said. "It would be very difficult to leave such a seat to run for the Senate."

Ensign, who lost to Reid by only 401 votes, also has been rumored as a potential Bryan opponent in 2000.

If Gibbons takes himself out of the race, that could open the door for Ensign, who remains a viable candidate because of his strong showing against Reid.