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Gambling is on Trial in South Carolina Presidential Primary

As Texas Gov. George W. Bush and Arizona Sen. John McCain prepare for their do-or-die primary showdown in South Carolina on Saturday, the Republican presidential candidates' ties to Las Vegas gaming companies have become a political liability -- and in some cases, a weapon.

Over the past three months, McCain has endorsed several measures heatedly opposed by Las Vegas gaming concerns. But at the same time, allies of Bush have used McCain's traditional ties to the industry as a sword against McCain.

"There's a very hotly contested primary, and all of a sudden, they've discovered gaming," said Wayne Mehl, Washington lobbyist with the Nevada Resort Association. "They're starting to look at us as a way to gain credentials with these (conservative) groups."

It's a fire anti-gambling forces are trying to fan. Tom Grey, executive director of the National Coalition Against Legalized Gambling, referred to his efforts as a "guerrilla war." By striking out against gaming, Grey believes McCain could further his campaign against special interests.

"Why wouldn't we (encourage it)?" Grey said. "(McCain) is going to need to talk about it. If I were the casinos, I'd be real nervous about McCain. McCain has everything to gain by sticking it to the Las Vegas guys."

That hasn't been lost on casino interests, who have been shifting their monetary support from McCain to Bush in recent months. In the past, gaming interests had been wary of Bush, noting his comments several years ago that he did not want to see Las Vegas-style gaming in Texas.

In a report issued Thursday, the Center for Responsive Politics, a non-profit Washington, D.C., election watchdog group, said Bush has pulled well ahead of McCain in casino-connected contributions.

Through Feb. 1, Bush received $95,450 in donations from individuals in the gaming industry, the center reported. McCain, by comparison, has received $69,312.

That's a stark change from 1999. Through October 1999, McCain led Bush in casino campaign contributions, $51,150 to $42,550. His contributors at that time included such big names as Mirage Resorts Inc.'s Steve Wynn and MGM Grand Inc.'s J. Terrence Lanni.

McCain has been a frequent Las Vegas visitor in the past, dropping by to raise campaign cash, watch prize fights and indulge in craps games.

"Everyone did believe McCain was an ally of the industry," said former Las Vegas Mayor Jan Jones, a senior executive with Harrah's Entertainment Inc. and an influential member of the Democratic National Committee.

But McCain angered industry leaders late last year by calling for hearings on the "slots for tots" issue -- the allegation that new slot machines utilizing cartoon characters and popular board games could encourage children to gamble.

McCain lectured International Game Technology Chairman and Chief Executive Charles Mathewson about this issue in a Dec. 14 letter, urging Mathewson "to reconsider your company's decision to produce electronic gaming devices such as slot machines, video poker games and video keno games with child-based themes."

Mathewson had previously donated $1,000 to McCain's presidential campaign.

Though the Nevada Gaming Commission passed regulations in January banning child-oriented themes from slots, McCain has indicated he will press forward with hearings in the Senate Commerce Committee he chairs, Mehl said.

McCain launched a second broadside against gaming interests in January when he co-sponsored a bill calling for a ban on wagering on collegiate sporting events. The House version of the bill was introduced by Rep. Lindsey Graham, R-S.C. -- the chairman of McCain's campaign in South Carolina.

Mike Sloan, chairman of the Nevada Resort Association, branded this measure as hypocrisy.

"He's a champion of Native American gaming in his home state of Arizona, where they have 18-year-olds gambling, and he's worried about young people betting on sports in Nevada," Sloan said.

McCain has maintained the pressure in South Carolina. The Arizona Republic reported that McCain voiced his support for the removal of video poker from South Carolina. McCain went on to blast state lotteries, calling them "very harmful and addictive."

Still, McCain's heat hasn't driven the entire gaming industry away. Lanni, an outspoken backer of McCain and $1,000 donor, said he remains solidly behind the senator.

"He'd make an excellent president of the United States, quite simply," Lanni said. "He himself has gambled in a recreational fashion, and the vast majority of Americans enjoy gambling in recreational levels. The senator is certainly not opposed to it on a personal standpoint.

"I don't really see what the senator has said that would be alarming to me as an individual citizen or a person involved in the gaming industry."

In fact, Lanni said he agrees with some of the positions McCain's taken that have angered some industry people.

"He was bothered by kiddie (slot) themes, and frankly, I was also," Lanni said. "It was a major mistake on the part of the manufacturers to come up with that type of product."

However, Lanni added, McCain "does believe the determination of having gambling should be properly in the domain of the individual states."

Frank Fahrenkopf, president of the American Gaming Association, expressed optimism McCain's fire against the industry would be short-lived.

"Probably no one knows the industry as much as McCain," Fahrenkopf said. "He's in Las Vegas all the time, and he never misses a (prize) fight. I'm hopeful, once we know where this campaign is going, that he'll reconsider some of the positions he's taken.

"The Bush people had accused McCain of being a favorite of the beer industry and the gaming industry. Whether or not that will continue to brew is hard to tell."

So far, the issue has been bubbling in the media.

On Sunday, a headline in the Charleston Post and Courier declared: "McCain money linked to alcohol, gambling."

"That might have an effect in South Carolina, where Republicans have rallied to battle video gambling, casino boats and a proposed statewide lottery," the article said.

And in a signal activists are looking beyond South Carolina, anti-gambling activist James Dobson -- a member of the National Gambling Impact Study Commission -- publicly lambasted former GOP contender Gary Bauer Thursday for endorsing McCain.

"McCain has accepted huge contributions from the gambling industry and apparently is comfortable with the proliferation of gambling in American society," Dobson said in a statement.

Anti-gambling forces have been putting pressure on Bush as well.

In a letter sent Feb. 8, Republican National Committee member Buddy Witherspoon of South Carolina urged Bush not to consider New York Gov. George Pataki as a running mate because of his negotiations with Indian tribes to open casinos in New York State.

"I feel strongly that the Republican national ticket should not include a nominee who supports expansion of legalizing casino gambling," Witherspoon wrote. "It is essential that the Republican Party, the Republican National Platform and the Republican nominees for president and vice president oppose the expansion of casino gambling."

But Fahrenkopf said he's been convinced by Las Vegas political consultant Sig Rogich and Gov. Kenny Guinn -- both Bush backers -- that Bush has no designs on openly attacking the industry.

"They've made it clear to me ... that he has no problem with casinos in Nevada," Fahrenkopf said. "His mom and dad (former President George Bush) have been in the state in the last couple of months."

Will the issue have wheels beyond South Carolina? Gaming industry insiders are expressing guarded optimism that it won't, citing surveys that show the vast majority of Americans are comfortable with gambling as entertainment.

"People don't care," said Glenn Schaeffer, president of Mandalay Resort Group. "The reason there's gambling across the United States is people like to do it. It is not an issue that motivates voters.

"In South Carolina, video power is coming out, so that's why it's on the scope. McCain has to make a strong showing in South Carolina, or he's got 20 days left (in his campaign)."

But Grey believes there's still a lot of ammunition left in the issue. He sees possibilities to attack in Michigan, for example, a state that holds its primaries later this month.

"You have the cop who killed himself (playing blackjack) in Detroit, and people in Battle Creek opposing a casino," Grey said. "There are (anti-gambling) groups in every state. We'll try to raise the issue."

Looking ahead, he also sees opportunity for a GOP candidate to use the gaming card against Vice President Al Gore, the likely Democratic nominee, given his Las Vegas fundraising activities and pro-gaming voting record in the Senate.

"I think Nevada people describe him as Nevada's third senator," Grey said.

Jones called Gore "a friend of Nevada and the gaming industry."

"He's always had an open door policy," Jones said. "He's really listened to what we've done to build communities, and tried to be fair in setting policy.

"No one expects any elected official to agree on all of our issues. When we become fodder for political pandering, that's our concern."

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