Council’s zeal for Internet gambling site ebbs

Erin Neff

Thursday, Nov. 2, 2000 | 11:13 a.m.

Awash in perceived conflicts of interest and opposition from gaming, the Las Vegas City Council on Wednesday defensively set a Nov. 15 vote on an Internet casino project.

But with both Mayor Oscar Goodman and Councilman Michael Mack abstaining on the issue, at least for now, support for the city's involvement in the VegasOne.com casino appears to be waning.

"We're putting it on the agenda to have public comment," said Councilman Gary Reese after gaming lobbyist Billy Vassiliadis objected to "the rush."

"We had the understanding that this was going to be a methodical process," Vassiliadis said, referring to a meeting with Goodman last week in which he and several gaming industry executives expressed concerns about the project.

"Putting it on the agenda for two weeks seems to be a little contradictory to the type of diligence that needs to be done," he added.

Reese, who was chairing the discussion due to Goodman's abstention and Mayor Pro Tem Michael McDonald's absence, said the council could vote Nov. 15 to hold the item in abeyance.

"I don't know what the council's going to do," Reese said.

And at this point, nobody is quite sure who on the council will be voting.

Goodman reiterated Wednesday that his abstention is only out of an abundance of caution because his law firm represented one of the casino's potential investors, Bob Stupak.

"I feel constrained to abstain," Goodman said.

Although Stupak is the one who first brought the proposal to Goodman's attention six months ago, he has not yet invested in the project. Goodman said that if he receives assurances from Stupak that he will not invest in the project, Goodman might vote Nov. 15.

On Wednesday four members of the council grappled again with the same concerns expressed during a special public hearing Monday.

"I personally do not have the comfort level as it relates to the security issues," Councilwoman Lynette Boggs McDonald said.

Under the proposal, the city would grant its name and seal to the Australian-based casino in exchange for 25 percent of the net profits and 5 percent of the gross gaming revenue. Reese was concerned the potential $90 million a year payment to the city might not be that high.

"I think that if we do go forward with this, we ought to have a set figure, not just percentages," Reese said.

VegasOne.com attorney Jim Jimmerson said the proposed casino will hit cyberspace with or without the city's involvement. VegasOne.com wants the city's name and seal to validate the site for gamblers looking for some type of regulatory oversight.

Jimmerson said VegasOne.com would also hold a three-month test period, during which no bets would be taken, if the council votes favorably to grant the casino the city's name and seal.