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Nevada Delays October Casino Revenue Release

LAS VEGAS, Nevada – Dec. 11, 2001 --For nearly two decades it was a rite of bureaucratic passage.

The calendar would turn to the 10th day of a month, and state gaming regulators would report on the amount of money Nevada casinos won from gamblers 40 days earlier.

With each new megaresort opening that figure seemingly grew, increasing the amount of tax money the state collected.

Then, terrorists hijacked four airplanes in the East, pushing the U.S. economy deeper into recession.

The dramatic economic slowdown has prompted state officials to delay today's scheduled release of October's casino revenue report until next week at the earliest.

A knowledgeable source says the numbers are expected to be flat or down slightly, and Gov. Kenny Guinn and his top aides are scheduled for a Wednesday meeting to discuss Nevada's economic uncertainty.

"He just wants to make sure that he's fully prepared to answer all questions about what the numbers mean for the budget," said Guinn chief of staff Marybel Batjer.

Guinn and Batjer will join with other state officials to eye the October casino revenue numbers as well as projected sales tax revenues for the month, which are typically released a week to 10 days after the casino numbers.

Slightly more than 75 percent of the revenue in the state's $1.8 billion budget is generated by the two forms of taxation, and lower-than-expected revenues could mean an extended hiring hiring freeze at the state level.

But layoffs are not in the offing, said the anonymous source, who requested anonymity.

"Probably not," he noted. "It's probably more of the same, but we don't know what those options are unless you get everybody around the table."

Nevada's jobless rate was 6.3 percent in October, its highest level in six years, according to the state Department of Employment, Training & Rehabilitation.

The Las Vegas area's unemployment rate was 6.7 percent for the month, which was up from 5 percent in September. The national unemployment rate rose by one-half of a percentage point in October to 5.4 percent.

Wall Street financial analysts question the wisdom of delaying the release of the October numbers. After all, they say, investors already expected bad results for the month, with some saying gaming revenues may have plummeted as much as 20 percent, or $162 million, to $649 million.

"I just don't think delaying the numbers will make much of a difference. I think people will just wait to see the numbers," said Dennis Forst, a McDonald Investments casino industry analyst.

So is the delay, which could be repeated in the future, some form of governmental spin, as bureaucrats attempt to assume control of a potentially difficult message?

"This isn't being put together by a bunch of spin doctors," the anonymous source said. "This isn't something that's being orchestrated or anything else. The governor wants to look at the numbers and have everybody sit around a table to discuss them. It's as simple as that."

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