Association predicts busy year for national lobbyist

Friday, Jan. 7, 2005 | 11 a.m.

New regulations or changes to existing laws stemming from the federal government's anti-terrorism efforts will keep the casino industry's Washington lobbyist busy this year.

Initiatives aimed at countering terrorism could have negative or wide-ranging effects on gaming companies, said Frank Fahrenkopf, president and chief executive of the American Gaming Association.

Hot-button issues range from immigration reform, which could affect the supply of much-needed service workers who keep the casinos humming to biometric passports, which could create more hassles for foreign casino customers.

Immigration reform, an outcome of post-Sept. 11 security concerns, will be a key issue for the Bush Administration this year, Fahrenkopf said.

The administration supports a work permit for undocumented workers with job offers and tightened border security, though no legislation has emerged yet.

Fahrenkopf said the industry hasn't yet taken a position on the subject but has discussed the issue with John Wilhelm, hospitality industry President with UNITE HERE, the parent union of the Culinary Union in Las Vegas.

UNITE HERE, a union with a majority of immigrant members, believes work permits contingent upon job offers leaves workers more susceptible to exploitation by employers that can decide when to hire and fire employees. It has pushed for a legalization plan for undocumented workers who can show a track record of good service with a company.

The gaming association also is watching rules requiring visitors from Europe and other foreign lands to carry biometric passports that can be read by machines and more effectively track potential criminals and terrorists.

The Department of Homeland Security delayed the requirement for biometric passports by another year to workout glitches and security concerns. Travelers have until October 26 to obtain passports that incorporate biometric features such as digital fingerprints or photos.

Association members with riverboat casinos fear measures allowing the government to shut down harbors and rivers to traffic, hurting business, Fahrenkopf said.

And casinos are worried about the FBI's expanded powers under the Patriot Act to obtain confidential customer information. Before the 2004 New Year holiday, the FBI used subpoenas and "national security letters" to obtain guest lists at Las Vegas hotels after the nation went on a high-level terrorism alert.

Criticism that the Patriot Act "went too far" in granting the government broad powers to infringe on the rights of businesses and citizens has led to more recent debates about amending portions of the law, Fahrenkopf said.

Casinos also will be on the alert for perennial concerns including federal bans on Internet gambling and college sports betting in addition to the threat of a federal gambling tax, he said.

The association lobbies for equal treatment of all forms of gambling, including tribal casinos, lottery agencies and the racing industry along with commercial casinos. Those efforts have helped derailed efforts to ban Internet gambling because previous bills had granted concessions to certain groups, Fahrenkopf said.

"You can't favor one group over the other," he said. "It has to be a level playing field."