Panel wants ban on casino contributions to politicians

WASHINGTON -- Casino licensees would be prohibited from making contributions to political candidates under a proposal being considered by the federal gambling commission.

The contribution ban is being met with skepticism by some commissioners who say they don't think that any one industry should be singled out from participating in the political process. And Nevada's two representatives serving on the National Gambling Impact Study Commission have different opinions on what action should be taken.

The proposal was floated Tuesday during the commission's meeting in Washington as it worked to finalize its report due to Congress June 18. The commission will vote on the proposal during its final meeting scheduled for June 2 and 3 in San Francisco.

Currently, Nevada allows casino licensees to donate to political campaigns. However, New Jersey prohibits casino executives from donating to city, county and state political campaigns.

Commissioner Terry Lanni, an MGM Grand executive, said he supports the concept of banning casino executives from making contributions to local and state political campaigns, but he left open the door for the gaming industry to continue to donate to federal candidates.

Lanni told Commissioner Richard C. Leone, a former New Jersey treasurer who authored the proposal, that he might be inclined to support the recommendation if the ban was narrowed to local and state campaigns.

"I think the New Jersey prohibition ... is appropriate," Lanni said. "I know that will come as a very unpleasant comment to a number of my friends who are in political office and seeking it in Nevada, but I happen to believe it."

Commissioner Bill Bible, a former chairman of the Nevada Gaming Control Board, disagrees with Lanni. Bible said it is "absolutely unfair" to target gaming in an attempt to "disenfranchise its participation in the political process."

"I think if the rules are going to be changed, then they should not be changed for just one industry," Bible said. "If it is simply gambling, I don't think it is appropriate."

A handful of other commissioners said they too would oppose such a ban. Commissioner John W. Wilhelm, president of the Hotel Employees and Restaurant Employees International Union, said he doesn't believe that the government should prevent an industry from making political contributions.

"In our union we are very sensitive to the notion that any group can be politically disenfranchised, because there is a concerted effort in this country to do that to union members," Wilhelm said. "I believe that in the gaming industry, all of us need to work together and I think it is unfair to disenfranchise any portion of the industry."

Commissioner Leo T. McCarthy, a former California lieutenant governor, said he will not support a recommendation to prohibit campaign contributions if the proposal does not cover all businesses. "It is very difficult to start selecting one industry at a time," McCarthy said. "I would really much prefer that all contributors be put on the same footing."

Commissioner Robert W. Loescher, the only American Indian on the panel, said contributing to political campaigns is a right protected by the U.S. Constitution. "What better way to further the democratic process than participating in campaigns," Loescher said.

But Lanni argues the casino industry is in an interesting situation and must realize the influence it could possibly wield. He points out that gaming is the only industry in Nevada that has a special tax, so logically it might make sense to place gaming in a different political category that is separate from other businesses.

"Because we are privileged, and we are dominate industry of the state, we could have undo influence potential," Lanni said.

After adopting 36 recommendations Monday to be included in the final report, commissioners agreed Tuesday to recommend to Congress that:

States refuse to allow casino-style gambling into failing pari-mutuel facilities.

Convenience store gambling should be banned.

Gaming regulators should be required to wait one year before being allowed to work for a gaming company in the jurisdiction they oversaw.

Economic and social impact studies take place before gaming new or existing gaming is allowed to occur.

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