Goodman wants repeal of code banning clubs’ tips for cabbies

Erin Neff

Monday, July 31, 2000 | 11:20 a.m.

Las Vegas Mayor Oscar Goodman is sponsoring a new ordinance that would repeal a city code that makes it illegal for adult businesses to tip taxicab drivers for bringing them business.

The idea behind the measure is that since everybody's breaking the law, let's make it legal.

"It's not that we can't enforce it," Goodman said. "We don't enforce it. There's no sense having it on the books."

Cabbie tipping is big business in Las Vegas where adult nightclubs vie for tourist dollars. It's common on the weekend to see lines of cabs outside clubs like Crazy Horse Too and Cheetahs, not waiting for fares, but waiting for what some consider kickbacks.

Goodman said he considered the practice "wrong," but felt powerless to address it.

In 1998 the state Taxicab Authority launched an investigation into the business after a whistleblower alleged the practice was so common that some cabbies were receiving 1099-income forms from the clubs.

State law prohibits drivers from accepting "a gratuity or any form of compensation" from anyone other than a passenger or employer.

But the Taxicab Authority's investigation didn't go anywhere, and the practice is even more pervasive today, with many cabbies receiving $15 and more for each person they bring to a club.

"Everybody's doing it," said Pete Eliades, owner of Olympic Garden.

Eliades asked Goodman to take the city code related to tipping off the books.

"He was very concerned," Goodman said. "He said he didn't want to be breaking the law."

Goodman said his attempts to get the Taxicab Authority to enforce its industry fell on deaf ears.

"I tried to have it enforced, but this is a state issue," Goodman said.

Goodman planned on introducing the ordinance Wednesday, but he decided this morning to pull the item so it doesn't interfere with an ongoing Metro Police investigation.

Goodman claimed he didn't want the taxi tipping issue to be raised at the same time investigators are probing the link between a church, the topless club Crazy Horse Too and whether city officials played any role in the licensing dispute.

Eliades commended the mayor for sponsoring the ordinance, which Goodman said he will introduce after the Metro investigation.

"There's no sense to have something on the books that's not useful," Eliades said. "There's no sense trying to cite somebody or arrest them."

In the past, Eliades -- also a part owner of Yellow-Checker-Star Cab Co. -- had condemned the process and refused to tip the cabbies bringing business to Olympic Garden.

Eliades denied that his change of heart was a result of increased cab business to competing clubs.

"The law doesn't make sense," Eliades said. "I'm not a lawmaker or a DA or a city attorney, so I can't comment on their law."

Goodman also denied that his measure was aimed at making the playing field even for Olympic Garden.

"I have no horse in the race," Goodman said. "I don't frequent that establishment (Olympic Garden), and I haven't been there since Mills Lane's roast."