Gaming industry aids campaign coffers

Benjamin Grove

Thursday, June 15, 2000 | 11:24 a.m.

Money

Tobacco, $12,500; guns, $0; gambling, $61,780; alcohol, $39,145

Tobacco, $6,500; guns, $0; gambling, $92,000; Alcohol, $17,500

Tobacco, $0; guns, $0; gambling, $61,000; alcohol, $4,500

Tobacco, $6,000; guns, $8,950; gambling, $106,250; alcohol, $10,000

Source: Common Cause

WASHINGTON -- Nevada's four-member delegation received $321,030 in campaign contributions from the gambling industry from 1993 through 1999, according to Common Cause, a Washington nonprofit, nonpartisan watchdog group.

Sen. Harry Reid, D-Nev., got $92,000 and Rep. Jim Gibbons, R-Nev., received $106,250 from gamers, making them the leaders in gambling money in their respective chambers, a Common Cause report released today said.

The report, titled "Paying the Price," analyzed lobbying and campaign donation money spent by four industries since 1989: gambling, alcohol, tobacco and gun manufacturers and rights groups. The report found that the four industries spent more than $286.2 million, $41.8 million in campaign contributions and the rest in lobbying expenses.

The report concludes the industries have been successful blocking federal efforts to "enact common sense laws concerning smoking, drinking, gambling, and gun violence -- laws that polls show have the support of most Americans."

"When common sense solutions to the country's biggest problems are derailed and ignored at the same time millions of dollars in campaign contributions flow to members of Congress, something is clearly wrong," Common Cause President Scott Harshbarger said.

Gibbons is proud of his contributions from gambling, chief-of-staff Mike Dayton said today. Gibbons was unavailable for comment.

"He is the industry's top defender," Dayton said. "It's the No. 1 industry in the his state, so that's the reason Jim has received support from these companies and their employees. This is money coming from the hard-working people in the industry."

Dayton said money from casinos flowing to lawmakers has increased in the past decade because gambling is often under attack in Congress. The report specifically cited a bill supported by the National Collegiate Athletic Commission that would ban betting on college sports in Nevada casinos.

"This bill would have a devastating impact on Nevada's economy," Dayton said. "It sets a bad precedent in terms of what members of Congress want to do. There are members who are clearly motivated to put the gaming industry out of business."

In a three-page summary of how gaming money has influenced Congress, the Common Cause report gives a brief overview of the college sports betting ban legislation, which recently passed the Senate Commerce Committee.

"Obviously, (the gaming industry) is not buying any favors," said Michael O'Donovan, spokesman for Rep. Shelley Berkley, D-Nev. "The Common Cause report conveniently left out the fact that the NCAA bill is passing."

Reid said it was odd that Common Cause chose to select gambling for the study, when dozens of other major industries also play politics in Washington.

"Rather than pinpoint legal industries, they should do something about campaign finance reform -- set limits on how much you can spend in the Senate races, take soft money and get rid of it," Reid said.

The report illustrates that the gambling industry has given more and more money to candidates over the past decade. That's partly because gambling has continued to grow as an industry, American Gaming Association president Frank Fahrenkopf said.

"We make no apologies for participating legally in the political process," Fahrenkopf said. "Every industry in this country is represented in Washington and when a bill is introduced that will damage an industry's companies, its employees, its shareholders, that industry will fight that legislation."

The report also refers to "A Stacked Deck," a reference to the National Gambling Impact Study Commission, which studied the effects of gambling and released its findings last year.

"Ultimately, they (gaming industry) were successful in reducing the powers of the commission and succeeded in getting several pro-gambling people appointed to the commission," the report said.

That's an apparent reference to three of nine commissioners seen as friendly to the gaming industry: William Bible, now president of the Nevada Resort Association; MGM Grand Chairman Terrance Lanni; and John Wilhelm, national president of the Hotel Employees and Restaurant Employees (Culinary) Union. Gaming critics said the gaming industry had heavily lobbied the White House and Congress to allow pro-gaming members on the panel.

President Clinton appointed Bible; Wilhelm was appointed by House Minority Leader Richard Gephardt, D-Mo.; Lanni was appointed by former Rep. John Ensign, R-Nev.

Reid said it was inaccurate to assume the gaming industry affected the commission's make-up.

Sen. Richard Bryan, D-Nev., was unavailable for comment today.