Saturday, June 02, 2001
Copyright © Las Vegas Review-Journal
Lobbying group helps stall Net gambling bill
By DAVE BERNS
lasvegas.com GAMING WIRE
The Nevada Resort Association exerted its influence earlier this week to temporarily shelve a bill that would pave the way for Internet gambling in Nevada despite the powerful organization's support for the measure, according to a knowledgeable source.
The reason: Association lobbyists were frustrated by attempts to amend it with provisions opposed by the casino industry, including an increase to the state gaming tax, the source said Friday.
The Carson City lobbying group that represents the state's major casino interests resurrected the measure earlier in the day, apparently after receiving assurances from legislative leaders that it would pass without major changes.
"The bottom line is there was just a whole lot of politics going on," the source said. "This wasn't about the substance of the issue.
"The NRA would rather see it not pass at all than with some ridiculous tax increase added to it."
Assembly Bill 578 would permit the Nevada Gaming Control Board to adopt regulations that would pave the way for Nevada-based companies to operate Internet betting sites.
It is expected to be adopted by the Legislature, which is scheduled to end its current session by midnight Monday.
Federal prosecutors argue that online betting is outlawed by U.S. law.
But supporters of the measure led by Assemblywoman Merle Berman, R-Las Vegas, say that Internet betting eventually will be legalized from within the United States, and Nevada casino companies should be prepared to tap into the market.
There are now more than 1,400 gambling sites on the World Wide Web, producing annual revenue of $1.6 billion worldwide, a figure that is expected to grow to $5 billion by 2003, according to the investment bank Bear, Stearns & Co.
Observers of the evolving industry say 90 percent of all online bettors place their wagers from within the United States, despite the opposition of federal prosecutors.
Major U.S. casino companies have begun establishing sites that permit gambling for nonmoney prizes.
The Internet measure was adopted by the Assembly in April and was recently approved by the Senate Judiciary Committee but was placed in legislative limbo when it was removed from a scheduled vote.
Nevada Resort Association President Bill Bible expects that Sen. Joe Neal, D-North Las Vegas, could push for an increase to the state's gaming tax by tacking an amendment onto AB578, but he downplayed the threat from such a move.
"I don't detect there's any support in the Legislature for the measure," said Bible, who declined to confirm whether the measure was temporarily pulled to prevent the addition of amendments.
Neal has failed in repeated recent attempts to increase the maximum tax on state casino revenue to as much as 11.25 percent from 6.25 percent. He was unavailable for comment Friday evening.
The Democratic senator who lost his party's 1998 primary race for the state's governorship has argued that the casino industry can absorb a $300 million annual tax increase, a move that he believes has widespread public support. |
