In election season, gaming companies hedge their bets

By Bryan Horwath

Monday, Nov. 7, 2022 | 2 a.m.

Nevada gaming companies have pumped hundreds of thousands of dollars into political campaigns for the upcoming election, mainly favoring Democrats, according to financial disclosures.

But in some cases, the state’s industry leaders have donated to candidates of both major parties, sometimes for the same office.

In the battle for governor, Boyd Gaming Corp. has given to incumbent Democrat Steve Sisolak and his Republican challenger, Joe Lombardo.

Boyd, which operates 10 casinos in Southern Nevada, donated $10,000 to the Sisolak campaign on Sept. 30 and $5,000 to Lombardo the same day, according to the Nevada Secretary of State’s Office.

By law, donations by individuals and organizations are limited to $5,000, though that can be maxed out for the primary and general election for a total of $10,000.

Kami Dempsey, founder and president of the Las Vegas lobbying firm Accretive Consulting, said it’s common for companies to play both sides.

“Often, you’ll get two great candidates running for the same office,” Dempsey said. “In that case, if a company feels it can support either one, it would give to both. It’s a way of showing support and also showing the public — because contributions are public — that both candidates would be fine for the issues they care about.”

Dempsey said companies are politically pragmatic, typically driven to support a candidate based on issues, not party loyalty.

“When you think about the hyper-polarization that’s going on between red and blue, I think the voting population is like that, but businesses and corporations, they exist in that moderate space,” she said. “They know that a balance of power is healthy and that it’s about getting good, sound people in who are able to make the right judgment calls.”

Michael Bowers, a political science professor at UNLV, said companies usually just want to “cover their bets” when it comes to elections.

“The bottom line, of course, is that, with some exceptions, corporations are concerned about purchasing influence on both sides so that regardless of who wins, they will have influence over politics that might affect them,” Bowers said. “That’s why in a race that’s close, they will give to both sides. In a runaway race, they would be less likely to give to the underdog.”

In January, the Nevada Resort Association, a leading trade group for casinos, announced the creation of the Nevada Resort PAC, a nonpartisan political action committee “dedicated to supporting business-minded candidates” who “understand the value of the gaming and resort industry.”

As of this month, it had raised over $2.3 million, including over $347,000 each from Caesars Entertainment and MGM Resorts International, and nearly $278,000 each from Boyd Gaming, Station Casinos and Wynn Resorts.

When the PAC was announced, Virginia Valentine, president of the resort association, said it was “critical that Nevada has elected representatives who value the unique role our industry plays in the economic security of every community.”

The Venetian, which is operated by financial firm Apollo Global Management and owned by Vici Properties, in April donated $210,000 to the Democratic-leaning and pro-Sisolak Home Means Nevada PAC.

Through its various subsidiaries, the Venetian has donated to a long list of Democrats this election cycle, including Sisolak, Attorney General Aaron Ford, state Treasurer Zach Conine and Clark County Commission incumbents Justin Jones and Tick Segerblom, according to secretary of state filings.

MGM, which operates several Las Vegas Strip resorts and is the biggest private employer in Nevada, supported Democrats including Conine, Clark County Commissioner Jim Gibson and Lt. Gov. Lisa Cano Burkhead.

But last year, the company also gave $10,000 to Lombardo’s campaign.

Wynn Resorts has also been a big contributor to Democrats and to promote Ballot Question 3, which would allow all voters to participate in primary elections, regardless of party affiliation.

Wynn in September gave $250,000 to the Nevada Voters First PAC, which is advocating for yes votes on Question 3.

Golden Entertainment, which owns nine casinos in Nevada, including the Strat in Las Vegas, has donated to Democrats such as Ford, Conine and Segerblom. But it also gave $30,000 to the Stronger Nevada PAC, which is aligned with Republican candidates.

Dempsey, whose company contracts with Golden, said gaming companies in Nevada want policies that favor tourism.

“Most people in Southern Nevada understand what the tourism industry does for our economy and our community,” Dempsey said. “Without it, we would be in a world of hurt. … When these companies get involved with certain candidates, I think it’s a matter of keeping our business climate healthy so we can continue to welcome tourists and expand our convention offerings.”

The economy is near the top of the list of the most important issues for individual voters and corporations, Dempsey said.

“It’s all about the economics,” she said. “What’s happening on a national level as far as our economic situation, that’s top of mind every day for businesses.”