Louisiana gambling ‘like pouring gasoline on a bonfire’

Friday, Sept. 11, 1998 | 1:49 a.m.

Speaking to the National Gambling Impact Study Commission, state Rep. Tony Perkins basically characterized Louisiana's regulatory system as the best-case example of how not to legalize wagering.

Perkins said the state erred by presenting only the lottery for a public vote before its introduction. Later referendums to decide whether to keep casinos and video poker made it impossible for the public to decide gambling on its merits, he said.

"From that model, it doesn't work," Perkins said. "Once the industry is up and running and the money is flowing, it is impossible for the public to judge the issue on facts."

Perkins, R-Baton Rouge, was among four panelists who discussed regulatory issues and the fine line between states regulating and actually promoting legalized gambling.

Perkins said Louisiana was further hampered through a split regulatory system that resulted in different agencies to oversee the dormant New Orleans casino project, riverboat casinos and video poker. All those functions were combined in 1996 under the Louisiana Gaming Control Board.

However, the new board has had a difficult time in tightening regulation, Perkins said.

"It's like trying to herd cats. We're trying to round them up after they've been running around. We have a lot of catching up to do," he said.

Although Perkins was a vocal opponent of reviving the land casino, he said, "I could care less whether people gamble. I have a problem with the state being a helper and promoter of gambling."

Perkins said he thought the most blatant example of state-promoted gambling was the lottery and suggested that the federal government provide incentives for states to back away from such games.

However, Perkins said he believed that overall regulations should remain with the states.

Perkins pointed to last year's federal conviction of former state Sen. Larry Bankston on video poker corruption charges and the current investigation of former Gov. Edwin Edwards in dealings with riverboat casinos.

"There's no wonder there is corruption when they (gambling industry) have so much money.... They are weaving their way through all aspects of government," Perkins said.

Commission member J. Terrence Lorni pointed out that "Louisiana and corruption have had a long relationship with each other."

Perkins said that was true. "It has been like pouring gasoline on a bonfire," he said.

Chuck Patton, executive director of the Mississippi Gaming Commission, said most critics who say regulators are too close to the industry are those who are totally opposed to casino gambling.

"They are unable to point out a single incident where this 'coziness' has led to a violation of the law" in Mississippi, he said.

Stuart Bowen, a representative of the Texas governor, said his state was dealing with a problem of increased illegal gambling since legalization of horse and greyhound racing, a state lottery, bingo and charitable raffles.

The primary sources of illegal wagering have come from sports betting and a form of a slot machine known as an eight-liner that slipped into the state because of a vague law. He said more than 1,000 of the slot machines had been seized this year.

Ronald Ryehlak of the University of Mississippi Law Center said it was still difficult to gauge legalized gambling.

"So far, in my opinion, the beneficial impacts have outweighed the negatives, but it's a close call and could switch in the future," Ryehlak said.

Ryehlak said state regulators will have to deal with technological advances dealing with slot machines that will provide television screens for watching sports events and could even connect with the customer's bank account.

The panel wraps up a series of hearings in November in Las Vegas. The commission's report is due next June to Congress and the president.