Casinos feel heat for meddling in House business

Monday, Nov. 23, 1998 | 11:01 a.m.

The casino industry is taking heat for overplaying its hand in an unsuccessful campaign to help Rep. Jim Gibbons, R-Nev., land a seat on the House Ways and Means Committee.

Gibbons lost his bid on Friday when House members with more seniority were selected to fill three Republican spots on the 39-member panel, which writes the nation's tax laws.

"You don't publicly get an industry like (gaming) involved in something like this," one well-placed Washington source said today. "It's counterproductive."

Another prominent Capitol Hill insider said the failed push for Gibbons makes Nevada and the casino industry look weak.

This source put most of the blame on Mirage Resorts Chairman Steve Wynn, a prominent Republican donor who pushed Gibbons into seeking a Ways and Means seat and then helped him lobby for the assignment.

"Steve Wynn has egg all over his face," the insider said. "He thought he could do the same thing he did when he got (Rep.) John Ensign a seat on Ways and Means in 1994. But there's a different group of leaders in there this time."

Wynn had established a good relationship with Newt Gingrich. But Gingrich, who is retiring, did not figure prominently in last week's committee assignments handed out by the new Republican leadership.

Mirage Resorts Vice President Alan Feldman today said he doesn't believe Wynn has egg on his face.

"I think that's a particularly immature point of view," Feldman said. "Community leaders, colleagues and political associates all put in a good word for the delegations to get key committee assignments. You make your best effort, and you hope your effort is successful."

Frank Fahrenkopf, president of the Washington-based American Gaming Association, wrote a letter to Ways and Means Chairman Bill Archer of Texas, urging him to give Gibbons a shot. So did Harrah's Entertainment Vice President Gary Burhop.

A casino industry source acknowledged today that gaming kept too high a profile during the hunt for a Ways and Means seat.

"In hindsight, we probably could have saved us some grief," the gamer said. "Normally, you don't write a bunch of letters because everybody gets to see them."

But Fahrenkopf insisted that the industry felt it needed to help Nevada land the seat.

"It was a tremendous long shot, but you have to try," he said. "If we hadn't tried, we would have been subjected to criticism for not making an effort."

Fahrenkopf said Gibbons now appears in good shape for a seat in 2000.

Newly elected Rep. Shelley Berkley, D-Nev., said today she believes she also has a strong chance of landing a spot on Ways and Means in two years.

Berkley acknowledged she's out of the running this year. But she said Democratic leaders have promised her the first available seat in 2000.

"It's a commitment that's rock solid," she said.

On Friday, Gibbons issued a statement indicating he was encouraged even though he had lost what he described as an "uphill battle."

"In lobbying the leadership for this important committee assignment, I was able to increase the awareness of the unique issues that face Nevada's two major industries," he said.

Today, a leading gambling critic railed at the industry in an opinion piece in the Washington Post for getting involved in last week's Republican race for House majority leader.

James Dobson, a member of the National Gambling Impact Study Commission, pointed out the industry's role in the race as an example of why he calls gaming the "new bully on the block."

Dobson charged that the industry helped "submarine" the candidacy of Rep. Steve Largent, R-Okla., a favorite of the Christian Coalition, which is spearheading an anti-gambling campaign across the country.

Wynn and other casino leaders encouraged Gibbons to back Rep. Jennifer Dunn, R-Wash., for the leader's post, but she lost on the second ballot. Gibbons switched his vote on the third ballot to Rep. Dick Armey, R-Texas, who ended up being re-elected.

The push for Dunn was part of the industry's effort to help Gibbons win a Ways and Means seat. Had Dunn been elected, she would have gotten off the panel and created one more opening for Gibbons.

Gaming's failure to get Gibbons on the committee, meanwhile, has renewed criticism of Ensign for giving up the seat to run against Sen. Harry Reid, D-Nev., this year. Ensign lost by 401 votes.

"There are a lot of people who are upset," another Washington source said. "Ensign's getting a lot of the blame."

The casino industry official, however, was reluctant to rap the Nevada Republican.

"From the industry's point of view, it would have been better had Ensign chosen to stay in the House," the casino official said. "But it doesn't do any good to criticize him now."

Ensign now is considering whether to ask for a recount in the election. This comes as Reid is expected to be elected minority whip of the Senate, the second most powerful leadership position among Democrats.