Editorial: Finding the elusive level playing field

Casino executives complain legitimately that while their industry must comply with tough regulations, Indian casinos and state-run lotteries have virtually no oversight at all.

The issue of regulatory equity has been heightened again after a member of the National Gambling Impact Study Commission, who also is a union leader representing Las Vegas and Atlantic City hotel workers, proposed Sunday that a new federal agency be established to oversee Indian gaming and state lotteries. As the Sun's Jeff German reported, under International Culinary Union President John Wilhelm's plan a new five-member agency of the Justice Department would be created and patterned after the stringent state gaming regulatory agencies in Nevada and New Jersey.

While Wilhelm floated this proposal, he added that he wasn't wedded to the idea. He hopes, however, his suggestion will start a dialogue on how to put Indian casinos and the 37 state-run lotteries on the same regulatory playing field as non-Indian casinos.

For instance, while this state's casinos are strictly regulated by an independent oversight body, state lotteries are essentially left to look after themselves. What ends up happening is that as the resistance to new taxes increases, the need for more gambling revenues from the lottery intensifies, resulting in more outrageous television commercials that try to get more people to gamble. These ads often prey on those who can least afford to risk their paychecks, promising riches that will never materialize.

In the area of Indian gaming, regulation has been barely noticeable. As was noted during a July 1998 National Gambling Impact Study Commission meeting, while there are 200 tribes operating 285 casinos in 28 states, the National Indian Gaming Commission has just 40 employees and a $5 million budget to track their operations. In contrast, Nevada's Gaming Control Board alone includes 450 employees and has a $25 million budget to oversee about 200 casinos.

One of the obvious problems with Wilhelm's plan is the issue of state and tribal sovereignty. In addition, since there already is a national Indian gaming commission in place, it probably would make more sense to beef up that agency first before trying to scrap it. Plus, the result of creating a new federal agency overseeing lotteries and Indian casinos is that Congress may be tempted at some point to bring Nevada into the bailiwick of federal regulation. Still, Wilhelm's proposal should add some perspective to this debate.

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