Park Place, Harrah’s next in line in minority contracting crusade

David Strow

Tuesday, Nov. 14, 2000 | 11:05 a.m.

Six months ago, the MGM Grand hotel-casino became embroiled in a debate over the role of minorities in Nevada's gaming industry.

Today, both the MGM Grand's parent company and members of the Las Vegas minority community say they're pleased with the progress that's been made since then. For example, MGM MIRAGE last month hosted a purchasing fair in hopes of boosting its ties with minority contractors.

But, not willing to rest with just one hotel-casino, minority business leaders say the next step is to ensure that every property in the state follows MGM MIRAGE's lead, using the MGM program as a road map.

"Eventually, we are going to be (approaching) all of the hotels," said Hannah Brown, president of the Urban Chamber of Commerce. "If we can solidify our relationship with the MGM Grand, we can go forward with a plan. Once we achieve success with one property, we can take ourselves forward. We cannot spread ourselves thin.

"I don't have to tell you what a hard nut it is to crack when you're dealing with the gaming industry."

Louie Overstreet, executive director of the Urban Chamber, specifically identified Park Place Entertainment Corp. and Harrah's Entertainment Inc. as companies that would be approached over the next several months.

The debate began in May, when the NAACP claimed before the Nevada Gaming Commission that the MGM Grand had spent just $950,000 with black-owned businesses since 1997. MGM Grand officials disputed that number -- their estimate was $1.64 million -- but MGM Grand Chairman Terry Lanni vowed to take action to promote business connections between his company and the Las Vegas minority business community.

Gene Collins, president of the local chapter of the NAACP, could not be reached for comment.

The NAACP didn't get what it ultimately wanted from MGM MIRAGE -- a $100 million community reinvestment fund targeted at West Las Vegas. But the company has held two workshop events aimed at accomplishing that goal, the most recent the October meeting designed to put MGM MIRAGE officials in touch with minority-owned construction companies. And MGM MIRAGE now requires every general contractor to subcontract with at least one minority-owned business.

That's essentially been the progress made to date -- a lot of goals and promises, but few numbers that clearly show what progress has been made. The eventual goal for MGM MIRAGE is to produce reports that show exactly how much money has been spent with minority-owned business, month after month.

Also yet to be determined is the amount of business each department will be required to conduct with minority businesses each month or year, though MGM MIRAGE officials said those goals will be set.

"We're already seeing success stories, as far as joint partnerships," said Tony Gladney, MGM MIRAGE's vice president of corporate diversity. "This takes time, but I think we're putting the necessary procedures in place to ensure this will work over a period of time. We'll start seeing results within the next year.

"These things don't happen overnight, but our commitment is there, and I think it's definitely a consistent commitment. We're there for the long term."

And that doesn't bother Overstreet.

"The top two people in MGM MIRAGE, (Terry) Lanni and (Dan) Wade (co-chief executive of MGM MIRAGE) were unequivocal in their comments on (minority) participation and inclusion," Overstreet said. "Those were some of the strongest statements for affirmative action and inclusion I've heard from senior gaming officials in 15 years.

"We're willing to give them time, given the outreach effort, and the realignment of this organization."

But organizations like the NAACP and Urban Chamber will have assistance as they try to crack the gaming industry nut. The World Conference of Mayors has announced it will co-host a national gaming conference with the Urban Chamber of Commerce in Las Vegas next summer, and one of Nevada's highest-ranking gaming officials said he will continue to bring pressure to bear on gaming companies to diversify their business contacts, work forces and executive ranks.

"One of our goals is to look at economic development opportunities, not just to be a consumer but a supplier of the (gaming) product going forward," said Gary Loster, mayor of Saginaw, Mich., and president of the World Conference of Mayors.

Loster believes the large gaming companies will be willing to listen because of their need to continue expanding. One area that expansion could occur, Loster said, is in Africa. South Africa is already a sizable gaming market, and Loster believes nations such as Zimbabwe, Ghana and Nigeria could also present lucrative expansion opportunities.

"The first thing those African countries will ask is, 'What are you doing in Las Vegas for inclusiveness and equality?"' said Johnny Ford, an Alabama state legislator and director general of the World Conference of Mayors. "What we're talking about is changing the entire gaming industry. All of us are moving now as one positive force.

"Next year, when we all come to Las Vegas, it will be one of the most positive changes in the history of the gaming industry."

One man working from the inside of the gaming industry to affect that change is Bobby Siller, member of the Nevada Gaming Control Board. Since the MGM Grand issue came to regulators' attention, Siller has pressed company after company on its diversity efforts from his position on the control board. Siller praised MGM MIRAGE, Station Casinos and Ed Roski, the soon-to-be owner of the Las Vegas Hilton, for their efforts in the cause.

"We have a long way to go on this issue," Siller said. "Some properties have committed to minority participation in their contracts, and at strengthening diversity in their management ranks. But we have nothing to measure any success or to know where we stand right now."

Should these efforts be viewed as an effort to establish minority quotas, one of the most controversial elements of affirmative action programs? Siller says no.

"What I'm talking about is creating opportunities for people to be challenged to better themselves or to aspire to higher goals within an organization," Siller said. "The actual selection process should be a level playing field, but unless you identify people of a diverse group and mentor them, it's not going to work.

"It is not my intent to regulate it. My intent is to make sure (gaming companies) have a strategy, to hold them accountable and to make sure they follow through."