Goodman, casinos not yet talking about NBA betting

David Strow

Tuesday, Feb. 27, 2001 | 11:14 a.m.

As Las Vegas Mayor Oscar Goodman steps up his efforts to woo the NBA's Vancouver Grizzlies, it appears few of the state's powerful players have joined the effort.

Goodman will meet with Grizzlies owner Michael Hiesley in Las Vegas later this week, just days after the NBA gave Heisley permission to move the Grizzlies to another city.

But Las Vegas finds itself with challenges its competitors do not have -- one, the city's lack of a suitable arena, and two, the NBA's historic reluctance to put a franchise in the city while casinos and sports books take bets on league games. Solving both would almost certainly require the assistance of the gaming industry, as well as state officials -- and those contacts haven't been made yet.

Nevada Resort Association President Bill Bible said the organization hasn't discussed the pro sports possibility with Goodman for at least six months. Without a specific proposal, Bible declined to say whether the NRA would back Goodman's efforts.

"I live here, and I would like to see pro sports," Bible said. "But you have to see the totality of the package, not only betting, but where they play. Someone has to put some flesh on this before we can react to it."

One of Las Vegas' competitors for the Grizzlies' attentions, the state of Louisiana, has proposed using $5 million in funds from casino taxes to help lure the NBA team to New Orleans.

But the gaming industry would have problems with using the same strategy to fund a Las Vegas arena, Bible said, noting that revenues from slot machine taxes already go to pay bonds that were used to build Thomas & Mack Center.

"The gaming industry in this state pays 40 to 45 percent of the state's total general fund," Bible said. "We wouldn't want to see that depleted from education and used for some other purposes. (And) we've already funded one stadium out of gaming revenues.

Goodman has repeatedly insisted any new arena would be built entirely with private dollars.

But even if the arena issue could be resolved tomorrow, the issue of sports gambling would remain. And the NBA has made it clear it will not allow a team to move to Las Vegas so long as sports books take bets on NBA games.

There's only two ways to outlaw such bets. One, the typical course, would be for the Nevada Gaming Commission to change state gaming regulations to ban NBA betting. NBA bets could also be banned by the Nevada Legislature.

The commission's chairman, Brian Sandoval, said he hasn't discussed the issue with Goodman. But he expressed skepticism about the wisdom of banning betting on the NBA.

"The team would be based in Las Vegas, but a regulation would be enforceable statewide," Sandoval said. "I don't know how the general public would feel about that. We already allow betting on our own teams in Nevada, and it works very well. I don't see why it should be any different with the NBA."

Still, Sandoval said he believed a compromise could be struck with the league.

"There may be other ways, without having to go to an outright ban on betting on the NBA," Sandoval said. "I don't think it would have to be such a black and white issue."

Casino industry observer Anthony Curtis, publisher of the Las Vegas Advisor, believes Goodman could face a difficult path in convincing the casinos to go along with the effort.

"My initial reaction is that the casinos would say, 'Keep your franchise. Who needs it?' " Curtis said. "You're making money hand over fist. You'd be doing this for nothing tangible in return. I don't think the casinos would view it as an even trade, and they're not used to taking the worst of it.

"It isn't the casinos' responsibility to prop up the community. When has altruism and running a casino ever been linked together?"

It has been argued casinos could use boxes at NBA games to help lure high rollers. But Curtis believes they'll lose more by not offering these high rollers the ability to bet on the games.

"They could actually lose goodwill with customers," Curtis said. "There are a lot of good casino customers who like to bet hoops."

Though many view Las Vegas as a long-shot because of these issues, not everyone is convinced the city should be ruled out. In a recent study, Street & Smith's SportsBusiness Journal ranked Las Vegas and Norfolk, Va., as the No. 1 candidates for the Grizzlies. It based its ranking on total personal income within a metro area, and whether enough personal income existed to support a new professional franchise.

By these standards, SportsBusiness Journal said, Las Vegas comes in far ahead of more prominently mentioned candidates like New Orleans and St. Louis. Though Las Vegas might have less personal income than other cities, a team here wouldn't have to share those dollars with other pro franchises.

"A major sports league eventually will place a team in America's fastest-growing metro area, even though it's a gambling mecca," SportsBusiness Journal wrote. "Will the NBA be the one?"

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