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Gaming Industry Told to Improve Public Relations

The gaming industry does a good job telling political leaders about its importance to the state, but needs to boost its educational efforts with the public, the attorney for Gov. Kenny Guinn said.

"The fate of gaming depends on what the industry does today in the face of increasing scrutiny," Scott Scherer told a gaming lawyers group in Las Vegas last week. "But the public, even here in Las Vegas, is very ignorant about the industry and its economic contributions."

Scherer said very few citizens realize how closely the gaming industry is regulated. Even worse is the public's ignorance of gaming taxes, which allows what he called ill-conceived populist proposals to raise industry taxes to resonate with voters.

Lawmakers suggesting higher taxes than the 6.25 percent maximum rate in Nevada often cite the 20, 25 or 30 percent rates imposed by some other jurisdictions. But the tax-boost proponents neglect to mention a key factor in those areas -- laws that artificially limit the number of casinos.

"Most people here don't know there's no limit to the number allowed here," Scherer said. "What would happen to Las Vegas if that were the case here? You couldn't build a Bellagio, a Mandalay Bay or the others with a 20 percent tax rate."

Scherer urged casino operators in Nevada to support the American Gaming Association's programs to educate the public, noting that a frequent gaming critic is planning further attacks on the industry.

"If Sen. Joe Neal is successful in putting a gaming-tax (hike) initiative on the ballot next year, you're going to have to do it anyway," Scherer said. "So why not do it now?"

Some Nevada legislators agreed with Scherer's assessment during a later panel discussion.

"The industry has a perception problem with the citizens of the North and South," Sen. Mark Amodei, R-Carson City, said. "It's gotten away from doing its public relations homework about its contributions to the overall economy. It needs to have more finesse in presenting its message and altering misperceptions."

"It's easy to point fingers at the giant," said Assemblyman Mark Manendo, D-Las Vegas. "The industry needs a PR campaign to let the people know what gaming is really about."

Another legislator noted that Nevada's explosive growth contributes to the public's lack of knowledge.

"About 81 percent of our population came here from a place where gaming was considered illegal or shady, so they're predisposed against it," said Assemblyman Richard Perkins, D-Henderson. "We're getting huge pressure from our constituents ... because gaming doesn't adequately publicize its contributions to the economy or its philanthropy."

"What got the most publicity in gaming was two individuals -- Sheldon Adelson for his paycheck protection plan and for trying to buy the (Clark) County Commission, and Steve Wynn for the art tax," said Sen. Dina Titus, D-Las Vegas. She said the public deems "their behavior as pretty obnoxious and pretty extravagant."

While the lawmakers said they expect a renewed push for increase gaming tax rates in the next session of the Legislature, there's virtually no likelihood proposals to ban political contributions by the industry will make any headway.

In another session at the "Countdown to the Millennium" gathering of legal experts at the Bellagio, Attorney General Frankie Sue Del Papa said a national gambling study conducted by gaming state officials and Florida State University will be completed by next January.

Thus far, she said, the study "paints a very positive story in terms of economic development."

Del Papa also said that Nevada officials are awaiting the outcome of legal challenges to Proposition 5, which would legalize expanded Indian gaming in California.

"I think at least portions of Prop. 5 will be declared unconstitutional," she said, "but the issue will be back."

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