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Governor Guinn: Nevada Still Leads Casino Industry

LAS VEGAS--Nevada remains the world's top place to operate casinos and the casino industry is in good shape despite the recent poor performance of the nation's economy, the state's top executive said.

"Nevada has always set the standard for (the casino business) both in the management and regulation of the industry," Gov. Kenny Guinn said earlier this week.

"The industry is doing fine, but its profit margin reflects the state of the nation's economy. In addition to a downturn in the economy, gaming has spread to nearly every state in the nation. Nevada's smaller gaming markets are being challenged by Indian casinos in neighboring California."

Guinn responded to questions about Nevada's top industry as many of the world's gambling executives visited Las Vegas this week to attend the industry's biggest trade show, the Global Gaming Expo.

The former Las Vegas School District superintendent and utility executive is facing Sen. Joe Neal, D-North Las Vegas in a November re-election contest.

Neal is a longtime advocate of increased casino taxes.

Asked if Nevada's casino gross gaming tax rate was too low at 6.25 percent, the nation's lowest casino tax rate, the governor said he was waiting for a final report from his statewide tax force examining the state's fiscal needs and the means to meet them.

Acknowledging that last year was a tough year for many Nevadans as well as for the state's casino companies, Guinn pointed with pride to the actions he took after many of the city's casinos and other businesses laid off employees after tourism sharply declined.

"On October 1, 2001, I ordered more than $57 million to be made available to help the 15,000 Nevada workers who lost their jobs after the September 11 terrorist attacks," Guinn said. "Under this plan, roughly $430 per month was made available for a typical family of four. As a result, (we implemented policies) exempting unemployment benefits from counting as earned income when determining eligibility for the primary assistance program."

Guinn disagreed with Nevada Resort Association President Bill Bible, who has criticized the 2001 Legislature for failing to pass a bill proposed by former Sen. Mark James, R-Las Vegas, that would have provided $250,000 for problem gambling treatment.

Bible, the industry's top Carson City lobbyist and a former chairman of the Gaming Control Board, recently said the industry will lobby the 2003 Legislature for state funds to provide problem gambling treatment.

"The state does not fund problem gambling because I believe this is the industry's responsibility," Guinn said.

American Gaming Association President Frank Fahrenkopf, the national casino industry's Washington, D.C.-based lobbyist, said Thursday that the association thinks that the state has an important role to play.

Fahrenkopf had previously called the state's lack of problem gambling treatment funding an embarrassment.

"We hope the state in the next legislative session does something," Fahrenkopf said.

MGM Mirage spokesman Alan Feldman said Thursday that he was surprised by Guinn's declaration, adding that he expects his company to back the state funding problem gambling treatment with at least $250,000.

"I think the state unequivocally has a role to play," Feldman said.

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