SEARCH NEWS:

 

Dispute Over Taxes: Mandalay May Quit Chamber

Mandalay Resort Group notified the Las Vegas Chamber of Commerce Friday it may quit the business group if it continues to lobby legislators against the gaming industry's tax position.

Mandalay Resort Group Chairman Mike Ensign on Friday sent a letter to chamber officials, warning the pro-business lobbying group that his company is watching the 7,000-plus member group's lobbying efforts and may end its membership with the organization.

Station Casinos announced last week that it was quitting the chamber because of its lobbying efforts against casino industry interests.

"I want to advise you that we will be closely monitoring the Chamber's activities during the balance if the (legislative) special session to determine whether it is appropriate for us to join our colleagues at Station Casinos in terminating our support for an organization that not only appears not to have our best interests in mind, but rather seeks to injure us to benefit other members," Ensign wrote in a letter to Lou Emmert, chamber chairwoman.

Ensigns's two-page letter, obtained by the Review-Journal, opens by reminding Emmert that Mandalay and its forerunner Circus Circus Enterprises have paid nearly $1 million in dues to the chamber during the past 10 years.

Ensign then writes about a number of recent chamber activities that caused him and other Mandalay executives "to become increasingly disturbed by the chamber's disregard for the best interests of its gaming members and the continued attempt to secure tax policies that favor nongaming members at our expense."

Ensign said he was disturbed that the chamber has:

* Supported new business taxes based on the number of employees in a company or the amount of its payroll, measures that would harm the labor-intensive resort industry.

* Favored tax policies that undermine economic diversification.

*Broken commitments to work cooperatively on proposals acceptable to gaming and other key Nevada industries.

Former Las Vegas Chamber of Commerce Chairman Robert Forbuss said Friday that he understands the rationale behind Ensign's letter.

"They're doing something based on their business philosophy," said Forbuss, who is still a chamber lobbyist. "They're a good company, and we've been with them in the past. We're not battling; we're both working toward a solution for the state."

Ensign was unavailable Friday for comment as was chamber President Kara Kelley. Mandalay Resort spokesman John Marz declined to comment on the letter.

MGM Mirage and Boyd Gaming spokesmen have said their companies intend to remain chamber members, while Park Place Entertainment is not a member.

Coast Casinos Chairman Michael Gaughan said this week that his company quit the chamber two years ago and will definitely not rejoin. Gaughan declined to say why he quit the chamber.

Forbuss said he'd be surprised if other casino companies follow Station's lead or join Mandalay Resort in warning the chamber.

< Gaming News