Fahrenkopf warns NCAA

Monday, Oct. 25, 1999 | 11:21 a.m.

The casino industry's chief Washington lobbyist has warned the National Collegiate Athletic Association that it risks an all-out war with the industry if it continues to pursue a betting ban on college sports.

Frank Fahrenkopf, president of the American Gaming Association, threw down the gauntlet in a letter Friday to NCAA President Cedric Dempsey.

"It would be unfortunate and counter-productive to end up in a confrontation over a well-intentioned, but cosmetic response to a serious problem," Fahrenkopf wrote.

"Regrettably, that is the position we will be put in should you pursue this proposal even though there is no logical or factual basis to link Nevada's legal sports books with illegal betting, which nationally is a problem that long preceded sports wagering in Nevada."

Bill Saum, the NCAA's director of agent and gambling activities, said this morning his organization plans to press ahead with its lobbying efforts in Congress despite the casino industry's opposition.

"This isn't about the NCAA vs. the American Gaming Association," Saum said. "It's nothing like that at all. It's an issue we've carefully examined from all sides, and we believe the law needs to be changed."

Saum said it's possible a bill banning betting on college athletics could be introduced in the Senate before Congress recesses for the year next month.

"We think there are people interested in announcing authorship of this bill sooner than later," he said. "It's a situation that for any number of reasons, we believe we come out on the right side of this."

Sen. Orrin Hatch, R-Utah, chairman of the Judiciary Committee, has expressed an interest in sponsoring the legislation.

Fahrenkopf said this morning it's possible a bill could be introduced this session, but he doubted whether any action would be taken until next year.

"If they introduce a bill, then we start making our case to Congress," he said. "This is a case of the NCAA in effect trying to lay off on us a problem that it really has more control over than any other organization in the country."

In his four-page letter to Dempsey, Fahrenkopf said the industry remains committed to the fight.

"The NCAA's attempts to construct a circuitous connection cannot withstand close scrutiny," he said. "Your proposal, if enacted would not have a material impact on illegal sports betting on college campuses, would impinge on state prerogatives to regulate gaming and would needlessly penalize Nevada's legal sports books, their employees and their customers."

Fahrenkopf said the industry agrees with the NCAA that underage gambling needs to be addressed on a national basis.

But he added that the NCAA and its members are in the "best position" to attack the problem on college campuses because they are closest to the students.

Fahrenkopf urged the NCAA to concentrate more on working together with the industry on public education and research of youth gambling.

Earlier this month, Fahrenkopf reported that Dempsey told him that betting on college athletics in Nevada has the potential to bring down college sports.

The NCAA's push is the result of a college betting ban recommended in June by the National Gambling Impact Study Commission, a nine-member panel created by Congress to examine the spread of gambling in America.

Fahrenkopf said the commission did not intend for Congress to get involved in such a ban.