Casinos and slot makers face off before Legislature

Scott Reeder

Thursday, April 8, 1999 | 10:30 a.m.

CARSON CITY -- Two of the most powerful interests in Nevada -- the casino industry and slot machine manufacturers -- squared off Wednesday in one of the larger legislative battles of the year.

The Nevada Resort Association wants to reign in the power of International Game Technology.

Here is how it wants the Legislature to help it do it:

Create regulations that may require slot machine makers to put a higher percentage of their profits back into jackpots from linked progressive games such as Megabucks.

Require slot makers to give casinos the option of buying rather than renting progressive games.

Require game makers to pay the state gaming tax on the profits they make from progressives.

Casinos and slot makers share profits made from progressive games such as Megabucks. Currently, casinos are agreeing to pay the slot makers' portion of the gaming tax as a condition of placing the progressive machines in the casinos, said Jim Mulhall, vice president of government affairs for the NRA.

"The marketplace dictates that we buy these games. Our customers expect it. IGT has a near monopoly. Something needs to be done," Mulhall said.

Ed Rogich, a spokesman for IGT, said the company is hopeful that the Assembly Judiciary Committee will defeat Assembly Bill 651.

Mulhall has said IGT controls 94 percent of the state's market for linked casino slots and 71 percent of the standard slot machines.

But Stan Fulton, chairman of competitor Anchor Gaming, argued the marketplace elected the company to its lofty spot in the gaming world.

"People vote when they play the slot machines," he said.

Representatives of the slot machine manufacturers contend there is no reason for the Legislature to intervene in private business relationships between themselves and the casinos.

But Mulhall contends there is a public interest in intervening.

"There are lots of good casinos that are entering into agreements with IGT. It is not because they think it is good deal. They are doing it because they believe they have to," he said.

Mulhall added that IGT should have larger jackpots for its Megabucks game.

"IGT is taking too much and not putting enough back into the jackpot," he said.

The Judiciary Committee is expected to vote on the bill by Friday.