Editorial: ‘Net gaming is still a bad wager for city

Friday, Aug. 24, 2001 | 4:29 a.m.

Last year the Las Vegas City Council wisely scuttled a plan to sell the city's name to an Internet gambling venture. Questions abounded about the propriety and feasibility of the city getting involved with an off-shore betting operation, but that isn't stopping Mayor Oscar Goodman from resurrecting the idea.

The mayor so far is refusing to say what Internet company is interested this time. But he is excited about the additional money that he believes the city would receive from a licensing agreement, which would have the city lend its name and city seal as a blessing for the gambling website. Goodman believes the proceeds from a deal could be used for government programs or property tax refunds. We believe this particular siren song should be ignored.

Internet gambling is illegal in the United States, so it would be irresponsible for the City Council to evade the law by hooking up with an off-shore company. There also are concerns that the city could be held liable financially if an online-betting scandal prompts lawsuits, which could negate any of the money it would receive from a licensing agreement. It also is a bad idea for government to be directly involved in gambling.

Goodman couldn't promote the idea last year since one of the partners in his law firm had once represented an investor in the Internet gambling project, but that isn't the case this time. "(The project) was shot down because I couldn't lead the charge," Goodman says. Goodman's endorsement certainly will give an Internet gambling deal a better chance of passage, but the City Council should resist the mayor's charm and not entertain this risky offer.