Nevadans react to California court ruling on Indian casinos

CARSON CITY, Nev. - Nevada government and casino leaders like a California Supreme Court ruling against Indian casinos, but realize the tribes won't back off.

"This is very favorable news for Nevada and our most important industry," Gov. Kenny Guinn said Monday. "But we have to be careful and keep vigilant because the executive branch in California may still have the leeway to decide on compacts with Indian tribes."

"Today's ruling buys us some time," said Guinn. "Meanwhile, it is crucial that we continue to aggressively pursue economic diversification and expansion ... and be prepared for whatever California might do in the long run."

Jim Mulhall of the Nevada Resort Association said the California court ruling against Proposition 5, the initiative to expand gambling at Indian casinos, is "obviously a victory."

"But before Nevada gets out the champagne we need to be sobered by the fact that the tribes have already mounted a petition process to change the California Constitution to allow for Indian gaming," he said.

"Today is a setback for them, but we should be realistic. They have shown time and time again that they're able to shower the political process with vast sums of money," added Mulhall. "They are a very determined group."

The tribes spent about $68 million promoting Prop. 5. Opponents, bankrolled mainly by casino and hotel companies, spent $29 million.

Mulhall, whose organization represents most major casinos in Nevada, added that the existing tribal casinos in California have been under a federal court order to shut down.

"That order was stayed pending the resolution of the Prop. 5 question in the courts. That has happened today," he said. "So, theoretically, 14 business days from now the federal government will be obligated to move against those illegal casinos."

U.S. Rep. Jim Gibbons, R-Nev., said he had been worried about the direction the California court would take, and was "thrilled to death" with the decision.

"Most of our tourism traffic comes from California,' said Gibbons. "We depend heavily on those traffic corridors coming from California. I'm one of those who jealously guard Nevada's largest industry. It wouldn't bother me if all gaming was in Nevada and no other state."

Reno Mayor Jeff Griffin said the California ruling "gives us a respite, another opportunity to continue to change the fundamental appeal and attraction of northern Nevada and the Reno-Tahoe area.

"Certainly the Indian nations are not going to stop here," Griffin added. "They will try to make whatever are the appropriate changes needed to eventually have Nevada-style casinos."

Jack Fisher, general manager of the Boomtown hotel-casino west of Reno on Interstate 80, echoed the mayor, saying, "This is a good reprieve for northern Nevada, but I expect them to go in and try to amend the California Constitution."

"This buys us time as we continue to develop ourselves as a destination market," added Ken Stellmacher, marketing director at the Silver Legacy, the biggest resort in the Reno area.

The pending case had been closely watched in northern Nevada, which gets 50 to 70 percent of its casino business from northern California. Most of that business comes in by car and bus over mountain roads that can be treacherous during the Sierra winter.

Las Vegas, with its big megaresorts, family attractions and nationwide clientele, is considered less vulnerable. But the court ruling was welcomed there too.

Rob Powers of the Las Vegas Convention and Visitors Authority said the decision is good news, adding, "The implications of expanded casino-type gambling in California on southern Nevada are considerable."

"The mood is happy," said Bob Forbus of the Las Vegas Chamber of Commerce. "The Supreme court ruled in our favor and vindicated our rights."

"The proliferation of gambling without regulation is a key issue and Indian gaming is not regulated at all," he said.

Forbus said the Indians' effort to rewrite the California Constitution ensures another battle. "We will align ourselves with organizations fighting this," he added.

archive