Industry experts discuss pending federal legislation

Lisa Snedeker

Friday, Jan. 12, 2001 | 11:22 a.m.

A looming battle over a proposed national ban on collegiate sports during the next Congressional session looks to be a more difficult fight this time around.

A panel of industry experts told casino executives that betting ban legislation will not go away as easily as last session when lawmakers bottled the bill up in committee. The casino executives attending the American Gaming Summit through Friday at the Bellagio hotel-casino discussed federal gambling issues, including the future of Internet and Indian gambling, as well as the Bush Administration's stance toward Nevada's biggest industry.

"I think the NCAA legislation will be a real problem," U.S. Rep. Frank LoBiondo, R-N.J., said.

John Ensign, Nevada's Republican senator-elect, said during Thursday's opening session that he is betting the ban supported by Sen. John McCain, R-Ariz., will be a constant threat during the upcoming session.

McCain chairs the Senate Commerce Committee that held hearings last year on college sports gambling. Lawmakers expect hearings might be scheduled to coincide with this year's NCAA basketball tournament in March.

The National Collegiate Athletic Association has been lobbying Congress to pass a law banning sports book wagers, which the NCAA says put undue pressure on young athletes to influence the outcome of games.

While Nevada's congressional delegation opposes the ban, Ensign said everyone in the industry needs to help educate lawmakers about the issues.

Sen. Harry Reid, D-Nev., says he will again ask the Justice Department to provide recommendations on how to stop illegal betting.

"He expects a much tougher battle this year," said Jim Ryan, Reid's spokesman. "With gaming issues we are always playing defense."

Gambling industry officials said another problem could come from attorney general-elect John Ashcroft if he is confirmed by the Senate.

Ashcroft, a conservative Republican with ties to the religious right, is opposed to gambling, LoBiondo said. "I'm worried about states' rights," he said.

Gamblers legally wagered $2.3 billion in Nevada sports books in 1998. State officials said 24 percent to 31 percent of the bets were on college sports.

Rep. Bennie Thompson, D-Miss., is among lawmakers who have seen the positives gambling can bring to poor districts.

"Tunica County was one of the poorest before gaming," he said. "Now we have to import workers. We have three times more hotel rooms than people."

Both Thompson and LoBiondo added there may be another fight over eliminating automatic teller machines in casinos.

"We need to be more proactive," he said.

Although it didn't pass, LoBiondo said a lot of progress was made during the last session on legislation to prohibit Internet gambling that he will again push.

"Hopefully the new administration will understand what states' rights mean," he said.

Congress also needs to be educated on Indian gambling issues, such as whether tribes should be allowed to set up casinos off their reservations, said Mark Van Norman, executive director of the National Indian Gaming Commission.

"This year will be especially challenging with the new administration," he said.

While the federal government has done little to provide infrastructure on reservations, tribal gaming dollars have paid for new schools, hospitals and roads.

In 1999, tribal gaming revenue was more than $9.6 billion, according to the commission. That's compared with $8.5 billion in 1998.