Lanni: Room moratorium needed in LV

The chief executive of MGM Grand Inc. today said it may be time to put a moratorium on new hotel rooms in the crowded Las Vegas-area gambling market.

J. Terrence Lanni, who kicked off Preview '99 today with an update on gaming issues, also said he believes the gaming privilege tax should be extended to gaming-product manufacturers and distributors and on slot-route operators.

"Before the Legislature considers a higher tax (on gaming), it should look at applying the privilege tax to other companies that profit from the industry," said Lanni, who is also chairman of MGM Grand.

Lanni said that not imposing a tax on slot route operators is "ludicrous." Operators pay an annual fee on machines on their routes, but don't have to pay a percentage of gaming win as casinos do.

Lanni also suggested that casino developers who appear before the Clark County Commission planning to build new hotel rooms be required to take rooms out of the local inventory before receiving approval.

Lanni said slowing down growth in hotel rooms is necessary because capacity is growing dramatically this year and the transportation infrastructure is lagging by at least five years.

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