Editorial: City should turn down ‘Net deal

Tuesday, Oct. 10, 2000 | 10:44 a.m.

An Australian-based Internet casino company may be willing to pay the city of Las Vegas between $20 million and $100 million every year if the local government agrees to lend its name to this gambling operation. City Manager Virginia Valentine notes that the city didn't solicit the company. "It came to us, and we need to explore it," Valentine told Sun reporter Erin Neff in a story published Friday.

Despite the seeming pot of gold, city officials should reject this entreaty from Down Under. For starters, gambling should be an enterprise run by private businesses with strict state oversight. State lotteries certainly are popular, but the fact is that government shouldn't be in the business of running games of chance. Even if the city isn't involved in actually advising or overseeing the operation, allowing the use of the city seal, or any hint that the city was endorsing the project -- such as using the name "City of Las Vegas Casino" -- would be the wrong message to send.

Mayor Oscar Goodman said the city wouldn't enter into an agreement if the Internet company couldn't protect the city from potential liabilities. But if a gambling scandal were to occur on this Internet site, and even if the city were to be immune from being held financially liable (an uncertain prospect considering that the city would be sharing in the company's profits), the city of Las Vegas still would receive a black eye.

There is considerable controversy now as to whether Internet gambling should be made legal in the United States. These sites already are up and running off-shore, where U.S. law can't prevent their use. Some industry analysts believe Internet gambling soon will be widespread and that Congress shouldn't bother trying to outlaw such betting. But many members of Congress, including Nevada's delegation, warn that it will be easy to cheat gamblers since it's almost impossible to regulate E-commerce.

It's easy, then, to see why an Internet casino would want the city of Las Vegas' name. Nevada's regulation of gambling is world-renowned for its strict oversight, and any imprimatur from the city of Las Vegas might make some gamblers believe -- mistakenly -- that there was some control to ensure that the games are aboveboard.

For a city government looking everywhere to find money to pay for needed services, an offer this lucrative can be tempting. But it's difficult to conceive of an arrangement with an Internet casino that would make sense for the city of Las Vegas.