Las Vegas Strip escapes major criticism

Mark D. Preston

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

WASHINGTON -- It appears unlikely Las Vegas casinos will face sharp criticism from a federal commission studying gambling's social and economic impact, as commissioners focus instead on state lotteries, Internet gaming and Indian gaming.

National Gambling Impact Study Commission members finish meeting this afternoon in the nation's capital, where they spent the past two days discussing the final draft of a report scheduled to be delivered to the nation June 20. Even gambling's harshest critic on the commission said he is more concerned about state lotteries, Internet gaming and Indian gaming than "destination gambling" resort cities such as Las Vegas or Atlantic City.

"There are levels of harm from the various forms of gambling, and destination gambling would certainly be lower on the list than lotteries, video poker and the Internet ... that invade the neighborhood and the home," Commissioner James Dobson said.

"I don't want to underemphasize my concern about Las Vegas and Atlantic City. I think you can make a case for the social problems that exist there," said Dobson, a conservative radio talk show host. "But I am more concerned about what is proliferating across the country."

Commissioner Bill Bible, the former head of the Nevada Gaming Control Board, said he did not want to "speculate about the overall winners and losers" in the report until it is released. But he added these three gaming areas will "receive greater scrutiny by the commission" because of "problems associated with the policy decisions that govern these types of operations."

"These are going to be areas that clearly are going to be looked at very, very closely," Bible said.

The American Gaming Association's top Washington lobbyist Frank J. Fahrenkopf, was reluctant to declare victory Wednesday saying "it's still to early to tell." But Fahrenkopf added he thinks the positives associated with commercial casinos will be highlighted for creating jobs and increasing communities tax bases.

"I think the overall view is casino gambling -- if properly made part of a carefully crafted economic plan -- can be a tremendous positive for a community," Fahrenkopf said.

While commissioners agree on the problems associated with state lotteries, Internet gaming and Indian gaming, the commission is miles apart on many other issues including sports wagering, horse racing and regulating casinos.

Dobson said he is concerned about the proliferation of casinos and said gaming states that allow casinos to be built on the border of neighboring non-gaming states should be required to enter into compacts. Otherwise, Dobson suggested, casinos should not be allowed to be built within 50 miles of a non-gaming state. He did not receive much support for his plan.

Dobson also said he wants the commission to recommend a ban on sports betting in all 50 states, but would agree to the commission delivering a stern rebuke of sports wagering. Dobson was supported by Commissioner Paul Moore, a Mississippi doctor, who said "I think this commission needs to make a statement that sports wagering is out of hand and will continue to grow."

Bible disagreed and instead suggested that each state be allowed to decide for itself if it wanted to allow sports wagering.

His idea drew a gasp from Commission Chair Kay James, dean of the School of Government at Regent University, who supported Dobson's proposed sports wagering ban. And Dobson, apparently surprised by Bible's proposal responded, "My goodness!"

Commissioners also could not agree over how to regulate the pari-mutuel industry, especially horse racing. Commissioner Richard Leone, a former New Jersey Treasurer, said the horse racing industry should be prevented from placing slot machines at horse tracks.

Many track owners across the country are losing money and believe that adding a casino style gaming element will help boost their revenues.

Leone suggested the horse racing industry should be allowed to "die a slow death."

But Bible sharply disagreed. Bible said he is not opposed to allowing casino style gambling at horse tracks, but he does not approve of allowing off-track-betting parlors to become mini casinos.

And Commissioner John Wilhelm, international president of the Culinary Union, suggested if states want to expand gambling it should take place at horse race tracks.