Lanni supports change of control in House

John Wilen

Thursday, June 10, 1999 | 11:23 a.m.

Terry Lanni is a Republican, but he hopes the Democrats recapture control of the U.S. House of Representatives.

House Democrats are better for the gaming industry, said Lanni, chairman of MGM Grand Inc.

"I'm a Republican, but from this industry's standpoint we would be far better off to have the Democrats in control of the House of Representatives," said Lanni, speaking Wednesday during the second annual Gaming Business and Law Update, a seminar for gaming attorneys at Bellagio.

Lanni's position gels with that of Mirage Resorts Inc. Chairman Steve Wynn, who in a change of policy contributed $250,000 to the Democratic Congressional Campaign Committee earlier this year and wants Democrats to regain control of the House next year. Wynn has also held several fundraisers for Democratic Leader Richard Gephardt of Missouri, who hopes to become Speaker if Democrats re-capture the House.

Both Lanni and Wynn still support a Republican majority in the Senate, but say the religious right holds too much sway over House Republicans.

Lanni reported his experiences as a member of the National Gambling Impact Study Commission, a federal panel studying the impact of gambling on society that is scheduled to issue a final report next week.

The immediate impact of that report will be to give gaming opponents fresh grist with which to file new anti-gaming legislation, said Lanni.

"You will have to double the size of the hopper for new bills in the House of Representatives," said Lanni.

He noted that most anti-gaming legislators are Republicans.

Despite their fury and fervor, Lanni doubts the report will have much impact on Nevada gaming, noting that it will emphasize states' rights to regulate gaming.

"It is still in the best interests of the people of the United States ... to leave the regulation of gaming to the states," said Lanni.

He did not comment much on his controversial vote in favor of a Commission recommendation that casino executives should be banned from making contributions to local politicians. He did say he doubts any such law would survive a constitutional challenge.

"Much of that will be lost in the courtroom battles that will ensue," predicted Lanni.

Lanni blasted reports that the Commission was urging a moratorium on the spread of gambling. It's more accurate to say the Commission is suggesting states considering legalizing gambling or allowing more forms of gambling "take a pause" to consider its potential effects, he said.

Reports of a possible moratorium on the spread of gambling may actually accelerate that spread over the short term, said Lanni.

"I think you're going to see a lot more growth than our opponents wanted ... as people try to beat the deadline," said Lanni.

He also voiced support for some controls over the placement of cash machines in the gaming areas of casinos. Making people walk a bit to find more cash may provide a built-in "cooling off" period, said Lanni.

"It does give people the ability to do something they may not normally do," said Lanni of cash machines near games.

He also supports the gaming industry's proactive stance toward researching and combatting problem and pathological gambling.

"We as an industry need to position ourselves not as the tobacco industry," said Lanni.

He praised the involvement of the Culinary Union in the Commission's meetings over the past two years, saying first-person accounts from union members about the economic benefits of legalized gambling had a profound effect on the panel's anti-gambling members.

"I think this industry ... owes a debt of gratitude to the Culinary Union and (fellow commissioner and International Culinary Union President) John Wilhelm," said Lanni.

Finally, Lanni said the Commission's report will not be everything the gaming industry could have hoped for, but it will be easier on the industry than many gambling opponents may have hoped.

"You may not like the results, but they're a darned sight better than they could have been," said Lanni.