Panel aims to curb political involvement of gambling industry

Thursday, June 3, 1999 | 9:40 a.m.

A divided National Gambling Impact Study Commission on Wednesday adopted a recommendation urging states to curb political contributions from companies in the gambling business. If carried out in state legislatures across the country, the recommendation could choke off a large source of money for state and local campaigns.

Rep. Jim Gibbons, R-Nev., called the recommendation "misguided" and a violation of equal rights. "Hopefully, this prejudicial policy will be soundly rejected by the states," Gibbons said.

The 6-3 vote marked the fourth time that the study commission adopted controversial language opposed by the gambling industry. At previous meetings, the commission voted to recommend a ban on betting on college sports, mandatory "gambling impact statements" before new casinos are built and a call for states to consider imposing a moratorium on more gambling.

After two years of work, the commission is completing work on a report to be released June 18 to the White House, Congress, state governors and Native American tribes.

Outgunned, pro-gambling members of the commission did what they could to make the report upbeat about their industry. Commissioner J. Terrence Lanni, chairman of MGM Grand Inc., fought for language declaring that the commission found no evidence of any organized crime involvement in casinos.

Lanni did support the proposed curb on gambling contributions because it would only affect companies, not individuals. The recommendation is a watered-down version of a broad New Jersey ban on political contributions from casino interests, their employees and agents.

Gambling interests have become prodigious donors at the state and federal levels. The National Institute on Money in State Politics says that in 10 states it has studied so far, gambling interests gave more than $1.5 million in the 1997-98 election cycle.

Commissioner Robert Loescher, an American Indian and Alaska businessman, said curbing campaign contributions means stifling free expression. "I think the American way is to put up your best ideas and let them win in the court of public opinion," he said.

The commission went into its final meetings with dozens of recommendations already decided, including a nationwide minimum age of 21 to place bets, less aggressive state lottery advertising and more funding of programs to treat gambling addicts.

At a meeting in April, the commission split 5-4 in approving the language urging state and local governments to consider a moratorium on more lottery games, casino and slot machines. Pro-gambling commissioners who opposed that language chose not to reopen the issue Wednesday.

On Wednesday the commission adopted a recommendation calling for a federal agency to gather information each year on state lottery operations, including demographic statistics on who plays and how much they spend.

Commission chairwoman Kay James said the nine-member commission does not need to reach consensus on every idea. But she said she hopes for an overall report that is "acceptable to every member."

The draft report says the commission's nine members "unanimously agree that there is a need for a 'pause' in the growth of gambling."

But it later adds: "It is clear that the American people want legalized gambling, and it has already sunk deep economic and other roots in many communities. Its form and extent may change - it may even disappear - but for the present, it's a reality."