Analysis: Gaming Control Board loaded with lawyers, Southern Nevadans

By Richard N. Velotta

Friday, April 10, 2009 | 2 a.m.

After a good run of appointments of gaming regulators by Gov. Jim Gibbons, the latest selections to fill vacancies on the Nevada Gaming Commission have raised some questions.

Here’s a quick recap:

Gibbons appointed Randall Sayre to the state Gaming Control Board in one of his first board selections. That appointment generated some controversy because former Gov. Kenny Guinn had appointed an aide to the position in one of his last acts of governor. But Gibbons didn’t like that selection and instead chose Sayre, who has a law-enforcement background and has performed admirably in asking the tough questions of gaming license applicants with sketchy pasts.

Next, Gibbons reappointed Gaming Commission Chairman Peter Bernhard, an attorney with a vast reservoir of institutional knowledge and a reputation for being fair. Anyone who knows Bernhard knows he communicates well, is extremely patient and has a great sense of humor, but can be firm when he needs to be with licensees and applicants.

In another appointment, Gibbons selected Dr. Tony Alamo of Las Vegas, who got up to speed on gaming issues in a hurry and became a key contributor. He replaced former state Sen. Ray Rawson, who rarely jumped into commission debates.

Finally, Gibbons chose industry executive Mark Liparelli to replace Mark Clayton, who chose not to remain on the Control Board.

Industry watchers generally thought Gibbons did a pretty good job with the gaming appointments in contrast to many of his other appointments that have raised the ire of pundits and the public.

But last month, Gibbons made two appointments to the Nevada Gaming Commission that left many scratching their heads.

He replaced longtime Las Vegas businessman Art Marshall and former Lt. Gov. Sue Wagner with Southern Nevada attorneys Joe Brown and John Moran Jr.

Brown, whose firm has a history of representing gaming clients and is well versed in industry law, looks like a good pick. Moran has some experience, having served on the commission for eight months, quitting in 2005 to run for lieutenant governor. He dropped out of that race.

A Gibbons spokesman has said the governor selected people who were best qualified to sit on the commission, but the appointments resulted in two problems: The commission is composed entirely of Southern Nevada residents and four of the five members are lawyers.

The Control Board recommends policy and licenses; the commission judges those recommendations and makes final decisions.

Gibbons has frequently stacked boards and commissions with Northern Nevada residents, much to the chagrin of Las Vegans. The fact that the powerful Gaming Commission is composed of Southern Nevadans is completely out of character for the governor and is bound to be a source of irritation in the north.

Although attorneys may be best qualified to apply gaming law to industry decisions, the commission has always been considered the voice of the people.

The fact that four of the five commissioners are attorneys — Brown, Moran, Bernhard and Radha Chanderraj — isn’t a violation of any laws, but it also wasn’t in compliance with the legislative intent of the makeup of the commission.

The statute addressing commission membership says the board “shall be composed of the most qualified persons available, preferably no two of whom shall be of the same profession or major field of industry ...”

Marshall, an affable common-sense businessman, and Wagner, a champion for women in the gaming industry and an advocate for Northern Nevada, will be missed.

With next week’s commission meeting in Carson City being Marshall’s last, he said he felt it was “time to smell the roses.”

In his 12 years on the commission, he has seen remarkable industry change, presiding over a fantastic period of mergers and acquisitions, dramatic change in technology, the globalization of gaming and policy changes that have included the introduction of private gaming salons.

Through it all, Marshall has brought a business perspective to discussions and has shown compassion to workers in matters of gaming employee registration appeals. He was often willing to give workers a second chance if they showed remorse for making a mistake.

Wagner, who opted against reappointment, was notable for challenging licensees to hire more women in executive positions and carefully scrutinizing applicants who had any history of domestic violence. She also has represented the interests of Northern Nevada and the rural counties well.

She has applauded the efforts of companies that have added or expanded gaming in the Reno area and has often asked Southern Nevada applicants whether they’ve taken a look at the Northern Nevada market.

With Wagner gone and every commissioner based in Southern Nevada, that viewpoint will be missed.

Southwest promises growth

Southwest Airlines agreed to a tentative contract with its pilots union, but the bigger news nugget that came out of the deal was that the airline promised to resume growth by 2011.

Southwest has been among the airlines that have shrunk, pulling back 4 percent of its Las Vegas flights.

When the company agreed to 2 percent raises, retroactive to 2007, it also told pilots the airline would grow by 5 percent in 2011 and 2012 and add 27 Boeing 737 jets to its fleet by 2012. Southwest pilots, already the highest-paid passenger jet fliers in the industry, make an average of $167,000 a year.

The company also indicated it won’t develop any domestic scheduling agreements with another carrier, similar to the one it had with ATA. Pilots have had some concern about deals the carrier has struck with Canada’s WestJet and Mexico’s Volaris, preferring that the airline get the certification necessary to fly potential international routes itself.

The promise to resume growth is good news for the local economy, considering that Southwest is McCarran International Airport’s busiest airline and thousands of new hotel rooms are coming on line in the months ahead.

In another Southwest news item, service to Minneapolis will expand later this year with three nonstop flights a day to and from Denver.

Southwest inaugurated service between Chicago’s Midway Airport and Minneapolis last month, and Denver has been the airline’s biggest growth market in the past year.

Still no word on the potential of nonstop Southwest flights to Minneapolis from Las Vegas.

Richard N. Velotta covers tourism for In Business Las Vegas and its sister publication, the Las Vegas Sun. He can be reached at 259-4061 or at [email protected].