STATESIDE


Stateside U


Sharon Harris is searching for understanding


nderstanding gaming can be one difficult task. Those outside the industry may not realize that the steep learning curve constantly shifts.


In mid-2001, Datateam Publishing acquired Casino


International magazine. I met with Managing Director Parvez Kayani in early September 2001. He traveled from the UK headquarters to New York to assess his new writers and discuss the magazine’s direction. In our meeting, I asserted that publishing a gaming magazine would be unlike producing any of their other titles. I believe the past decade has been a unique


Fahrenkopf stated that Reid


understands the gaming industry’s value, and despite “economic uncertainty and political volatility”, Reid will work to protect the interests of the casino industry


journey for the Datateam management and staff. The ups and downs and twists and turns create enough challenges and excitement to keep people involved. Take the political intrigue of just the past year alone. After the November elections, American Gaming Association (AGA) President and CEO Frank Fahrenkopf Jr. released an open letter, summarizing many favorable results for gaming. He also urged vigilant interaction with the new Congress. Fahrenkopf cited specific examples of positive


federal and state victories. These included the election of former Nevada Gaming Commission Chairman Brian Sandoval as new Nevada governor, New Jersey Governor Chris Christie’s proposed public-private gaming/local partnership to reinvigorate the city’s tourism district and voter approvals in several states to continue, introduce or expand gaming within their jurisdictions. He called Democratic Nevada Senator Harry Reid’s


reelection to a fifth six-year term an “important victory”. Retaining his position as Senate Majority Leader, Reid won by a slim majority after a bitter $41 million campaign. Fahrenkopf stated that Reid understands the gaming industry’s value, and despite “economic uncertainty and political volatility”, Reid will work to protect the interests of the casino industry. However, those without longstanding connections


to Reid may feel little or no allegiance to him. I spoke to one industry veteran at the G2E who rejected Reid politically. This guy wasn’t buying the premise of Reid’s help for gaming across the board. He cited Reid’s “acceptance” of the gaming industry’s exclusion from receiving any stimulus money in 2009, plus his push for his idea of questionable legislation at inappropriate times. Online gaming was one controversial issue during December’s Congressional lame duck session. It is the final legislative wrap-up, weeks before the swearing in of the new Congress. Although dozens lost, they


10 FEBRUARY 2011


voted on more legislation. Reid, who had previously opposed online gaming, changed direction and unsuccessfully attempted to insert online gaming language into the tax compromise bill. That ignited objections from multiple fronts. The AGA supported Reid’s efforts. Fahrenkopf’s public statement said, “This is tough law-and-order legislation that puts in place a solid regulatory framework and legal oversight that will prevent illegal activity and protect the estimated 15 million Americans who already are playing poker online.” Some disagreed. Reid faced accusations of


rewarding big campaign contributors like Harrah’s, recently renamed Caesars Entertainment Corp., and MGM Resorts International. The nonpartisan Center for Responsive Politics reported that Harrah’s employees and political action committee donated $83,000 to Reid’s reelection campaign; MGM, Reid’s largest donor, contributed at least $192,000. One senior congressional aide called it payback, or “quid pro quo”, for huge contributions, renaming him “Harrah Reid”. Of course Caesars would look out for its own interests…the company owns the World Series of Poker franchise. Isn’t that how politics works? However, competitors Sheldon Adelson and Steve


Wynn protested provisions permitting participation by companies that previously violated online gambling laws. The National Indian Gaming Association (NIGA) also cried foul, charging the language unfairly benefitted Nevada and New Jersey for several years. Reid stirs both good and bad emotions. For some, his actions and statements have reinforced his unpopularity and damaged his public standing. Some of Nevada gaming’s big guys consider the past two years disastrous for America’s businesses under the former Congress and the White House. Reid and others share the blame for decisions that


have negatively impacted gaming. During his leadership tenure, the housing market collapsed, the economy exploded and unemployment soared. If anything, their solutions have had marginal effects.


Nevada’s statewide statistics reveal manufacturing employment, which includes gaming equipment, has dropped 26 percent-plus since September 2006. For several months, Nevada has led the nation in home foreclosures and high unemployment rates for months. Similar figures exist in many other gaming states. But I am ever hopeful that the new political leaders


in Washington and nationwide will grow up, wise up and create a solid economic environment that will launch business toward profitability. Then, we all win and can return to the excitement of our industry.


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