Former candidate Russo proposes state lottery

By Emily Richmond

Friday, May 4, 2001 | 10:11 a.m.

Aaron Russo, a Hollywood producer who lost a raucous battle against Gov. Kenny Guinn for the 1998 Republican gubernatorial nomination, is proposing a state lottery to help pay for prescription drugs for seniors.

"I have first-hand knowledge now of how difficult it can be for seniors to pay for their medications," said Russo, explaining that his father died recently and his mother is in poor health.

Russo, who produced numerous films, including "Trading Places" and "The Rose," appears in television spots to tout his plan. He has also launched a website (russoplan.com).

Russo's plan isn't the only lottery proposal in Nevada. Assembly Joint Resolution 11 would create a state lottery and limit ticket sales to casinos.

Russo said he would like to see lottery tickets sold in convenience stores and other locations, in addition to casinos.

"A lottery is something that is voluntary, it's not forced on people and it can raise lots and lots of money," Russo said Thursday. "It could generate tremendous revenue and help solve a serious problem."

Assemblywoman Kathy McClain, D-Las Vegas, who authored the resolution, said Thursday she originally suggested earmarking the lottery proceeds for education. McClain said she has received telephone calls and letters from constituents, who have suggested plans similar to Russo's.

"We need the money for a lot of things," McClain said. "The problem is, if we split it up between education and seniors, those two factions will end up battling each other. But if we don't designate the recipient, we'll have hundreds of factions fighting over the money."

McClain said she also has reservations about using a lottery to launch a new initiative.

"We have no idea if the lottery would even be successful," McClain said. "I'd hate to tie in any program that didn't have another stable funding source."

To change the Nevada Constitution, which prohibits lotteries, McClain's resolution would be put through a five-year process that includes two votes by the Legislature and one by public ballot.

The next step for the resolution is a hearing by the Assembly Taxation Committee.

Russo, a former nightclub manager, said he would prefer that the lottery be overseen by the casinos or another private entity, rather than legislators.

"I would love to see the casinos get involved and give something back," Russo said. "There are certainly enough elderly people who put their quarters in the slots."

Russo abandoned the Republican Party in July 1999 and announced he would run for Congress as an independent. Four months later he shifted his political affiliation yet again, this time joining the Libertarian Party.

Russo said he hasn't decided whether he'll ever run again for political office. He said he is not using the lottery proposal as a springboard into the political arena.

"I understand why people may be asking that, but I truly haven't decided yet," Russo said. "I have many ideas I want to get out there, but the best way to do it may be by being a private citizen, not a politician."

Chris Azzaro, former executive director of the Nevada Libertarian Party who currently runs the group's Political Action Committee, said Russo has been an active member of the group. Azzaro said he would back Russo if he decided to get back into politics.

"He'd make a terrific elected official," said Azzaro, who lives in Las Vegas.

Since the television spots began airing Monday, Russo said, he has received more than 1,000 calls and e-mails. He plans to continue gathering public support, then bring his proposal to the Legislature.

Russo, who moved to Nevada from California in 1996, mounted a brash and colorful gubernatorial campaign against front-runner Guinn. At the Clark County Republican Convention Russo was threatened with arrest after he and his delegates were accused of disrupting the proceedings.