Editorial: Don’t bet the house on new tax

Friday, June 18, 1999 | 9:31 a.m.

Today the National Gambling Impact Study Commission formally releases its report, the culmination of a two-year, $5 million investigation of gambling in the United States. While the commission spent considerable time on gambling addiction and encouraged all segments of the industry to address this problem, at the same time there was a recognition that gaming can bring economic benefits to those states and cities where it is legal. If anything, some of the sharpest criticism was directed at state-run lotteries and Indian casinos -- not at privately run casinos in Nevada.

But that hasn't stopped Rep. Frank Wolf, R-Va., from shifting into hyperbolic overdrive. Wolf, who authored the legislation that created the federal gambling commission, made a lot of noise this week when he said he might introduce legislation that would seek a 1 percent federal tax on gaming revenues to fund gambling addiction treatment. Just the mere thought of additional taxes will send shivers down the spines of casino executives and tourism officials in Las Vegas, but the reality is Wolf's proposal to seek more revenues has little chance of becoming law.

For starters, public opinion is foursquare in favor of gambling. A Gallup poll released Wednesday found that almost two-thirds of American adults approve of legal gambling; 67 percent said opening a casino assists a community's economy. The GOP-led Congress has been hesitant to raise any taxes, let alone on a popular form of entertainment, so Wolf's proposal would have difficulty from the get-go. The Republican leadership in the House already has sent word through House Majority Leader Dick Armey, R-Texas, that it won't support Wolf's plan.

Along with gaming's popularity, there also is the fact that both parties in Washington, D.C., are trying to do everything in their power to please the gaming industry, which has donated large sums of money to both parties. Recently House Minority Leader Richard Gephardt, D-Mo., traveled to Las Vegas to pick up a $250,000 check from Mirage Resorts Chairman Steve Wynn for the Democratic Campaign Congressional Committee. Republicans desperately want to get back in the good graces of the Strip titans, so don't expect them to make any moves that could damage that relationship further.

When Congress, the states and Indian tribes review the report they should do so objectively, looking at the report's recommendations with a level head. Common sense proposals, such as raising the minimum gambling age to 21, should be considered and adopted by the states. What policymakers shouldn't do is respond in a knee-jerk fashion, as Wolf did, calling for simplistic solutions not advocated by the commission. That will do nothing to serve the public.