Miller: Wake up to threat of Prop 5

Gov. Bob Miller said the casino industry doesn't grasp the magnitude of the economic crisis that could face Nevada if California voters approve an Indian gaming initiative next month.

"I'm disappointed that we don't seem to have a full enough understanding of the potential for our economy this message will deliver," Miller told the SUN Friday from Belgium, where he was on a mission to lure tourists to Nevada.

"California is our largest economic base. If we are asleep at the switch and this creeps up, it could be a serious problem."

Casino industry leaders acknowledged in interviews with the SUN last Thursday that they're losing the battle to stop Proposition Five, the California Indian Self-Reliance Initiative.

Latest polls show California voters favor the initiative by 15-20 points.

The tribes have outspent the casino industry and a coalition of California special interests by a 3-1 margin.

"We could lose it, absolutely, given the fact that many people in the industry are sticking their heads in the sand," said Mike Sloan, general counsel of Circus Circus Enterprises.

Circus Circus, Mirage Resorts Inc. and Hilton Gaming have been leading the way in funding the Proposition Five fight. But beyond those gaming giants, support within the casino industry has been light.

If the ballot initiative passes Nov. 3, more than 100 California tribes would be able to develop Las Vegas-style gambling operations, which experts say eventually could cost Nevada casinos as much as $700 million in revenues a year.

Miller said he's worried that Nevada's gaming-fueled economy could be imperiled by full scale gambling in California.

"If gaming became totally legal in California, no matter how many more trips we take elsewhere to encourage tourism, it's not going to make up for the drop off there," Miller said.

The governor said he has voiced his concerns directly to casino executives, but the messaged hasn't gotten through.

Sloan said those hit the hardest by widespread casino-style gaming in California will be the smaller casinos that don't have themes to attract tourists. Most of those properties, including many in Reno, have not contributed to the campaign against Proposition Five, he said.

A coalition of Hollywood entertainment companies, labor unions, law enforcement agencies and other special interests have taken the lead in the fight. But the casino industry has been responsible for contributing most of the funding.

Financial reports released recently in California show the tribes have out-raised the coalition by $42.7 million to $15.5 million.

Miller said most of the money being spent by Native Americans has come from tribes currently running illegal gambling operations.

The majority of tribes in California have failed to sign compacts with Gov. Pete Wilson, who is opposed to Proposition Five.

Miller said he agrees with casino industry leaders who believe there's a good chance the initiative could be declared unconsitutional if it passes next month.

But he said he also shares the industry's concern that the tribes could use the popularity of the initiative to persuade California lawmakers to enact new Indian gaming legislation next year.

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