Home subscribe manage Las Vegas Review-Journal
  Jobs Cars Homes Shopping Travel Weddings Golf Best of Las Vegas Photo   Search:

RECENT EDITIONS
Sun Mon Tue Wed Thu Fri Sat

News
May. 30, 2008
Copyright © Las Vegas Review-Journal

Budget cuts may impact gaming

Inadequate staffing feared for regulation

By HOWARD STUTZ
REVIEW-JOURNAL
Gaming Control Board

Proposed state funding: $34.1 million

Proposed cut: $4.8 million

Net proposed state funding: $29.3 million

Staffing: Some 462 full- and part-time employees

Proposed cut: Possible lay off of between 40 and 50 staff positions

Revenue generators: Three divisions -- Investigations, corporate securities and the laboratory that tests gaming devices -- all generate revenue paid for by licensees or applicants


Dennis Neilander
Gaming Control Board chairman is still gathering information

Gaming lawyers and casino observers worry that potential budget cuts ordered by Gov. Jim Gibbons will have a negative effect on Nevada's gaming regulatory process, leaving the industry without adequate staffing in several divisions.

All state agencies, including the Gaming Control Board, are expected to submit budgets to the governor's office by next week that will reflect a 14 percent spending reduction.

Newsvine Digg Fark Technorati reddit StumbleUpon del.icio.us Slashdot Propeller Mixx Furl Twitter MySpace Facebook Google Bookmarks Yahoo! Bookmarks Windows Live Favorites Ask MyStuff myAOL Favorites

Most Popular Stories
  • NORM: Penthouse wants piece of the Strip
  • RAMPAGE ENDS IN SUICIDE: Man runs amok in Las Vegas
  • ROBBERY-HOMICIDE CASE: Juror sent flirtatious messages
  • Father mourns his daughter
  • NORM: 'Joe the Plumber' too booked for LV
  • Judge asks court to release son arrested after crash that killed girl
  • NORM: Strip club owners, 'Vinny' part ways
  • Police ask: Are there others?
  • Anger over cuts reaches fever pitch
  • Working beneath Lake Las Vegas



    • The Control Board uses general funds provided by the state but is also funded by fees generated through licensing applications. Three control board divisions, investigations, corporate securities and the laboratory that tests gaming devices, all generate revenue paid for by licensees or applicants.

    Control Board Chairman Dennis Neilander said earlier this week he wouldn't comment in detail about the potential budget cuts because he is still gathering information from the agency's seven different divisions.

    Most observers didn't believe the agency would slice departments that generate revenue.

    "We have to come up with a plan on the assumption we will receive our proportionate share of the general funds," Neilander said.

    He said that reducing the control board budget could slow different activities, such as the audit schedule on casinos. Currently, major casino audits are conducted once every 2.9 years. The state mandates audits to done once every five years. Customer-casino disputes could also take longer to resolve if there are division cuts.

    The control board is currently operating under a budget of $45.8 million for fiscal year 2008, which includes licensee generated fees. Under the governor's proposed 2009-11 General Fund Appropriation Targets, the Control Board needs to reduce a planned $34.1 million in state funding by almost $4.8 million, bringing the figure down to $29.3 million. The budget number did not include revenues from fees.

    Following previous budget reductions ordered by the governor's office, some wondered how much more the agency can cut.

    "You've got to assume that all the low hanging fruit has already been taken," said Bill Bible, who spent 10 years as chairman of the control board. He is now president of the Nevada Resort Association. "Once the board determines where the cuts need to be made, certain functions might not be able to be funded."

    To make the required budget cuts, the agency may be forced to lay off between 40 and 50 staff members. The control board has 462 full- and part-time employees and the layoffs could come from nonrevenue generating divisions, such as audit, enforcement, and tax and license. The agency could also look at closing smaller offices around the state.

    One gaming industry observer said the control board, the agency tasked with regulating Nevada's nearly 3,000 restricted and nonrestricted gaming licensees, is not like other state agencies, where programs and projects can be eliminated or reduced.

    Gaming attorney Greg Giordano of Snell & Wilmer, who oversaw the control board's corporate securities division in the 1990s, said mergers and other major acquisitions have slowed, compared with a few years ago.

    "What could be potentially harmful is a hiring freeze where you lose people to retirement or attrition and can't replace them," Giordano said. "That could be potentially harmful."

    Licensing investigations, however, should continue, sources said. The largest license applications currently being undertaken by control board agents include Australia-based Crown Ltd., which is spending $1.8 billion to purchase Cannery Casino Resorts, and Dubai World, the investment arm of the Persian Gulf state of Dubai, which spent almost $5 billion to acquire 9.4 percent of MGM Mirage and half ownership in the CityCenter development.

    Through March, gaming taxes collected by the state for the fiscal year are 4 percent below last year's figures and 9 percent below the projections from the May 2007 Economic Forum's forecast.

    Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871.



    Leave Your Comment 17 Reader Comments
    Terms & Conditions
    The following comments are provided by readers and are the sole responsiblity of the authors. The reviewjournal.com does not review comments before publication nor guarantee their accuracy. By publishing a comment here you agree to abide by the comment policy. If you see a comment that violates the policy, please notify the web editor.

    Some comments may not display immediately due to an automatic filter. These comments will be reviewed within 48 hours. Please do not submit a comment more than once.
    Current Word Count:

    Fred Frazzetta wrote on June 03, 2008 10:19 AM: The Gaming Control Board is yet another government agency in this state that needs a good looking into by an independent investigator. Another Agency which bends over backwards for the Casino Industry...making sure to protect the Casinos at all costs. We could do without the corruption...meaning we could do without the inept, overpaid Board Members, and get honest hard working people to fill their spots. We need to take back this state from the Casinos - they (the casinos) should not run this state...it is our state and we need to take it back.

    Harrah's Entertainment Inc. illegally remodeled thousands of rooms and left those same rooms unsafe for the public to stay in. Harrah's actions were willful...Harrah's actions were criminal, but did the NV Gaming Control Board get involved? NO, a statement was made by a Board Member that if it were found to be a willful act they (the Board) would contemplate action. Harrah's recklessly endangered the public - Harrah's broke the Publics' trust & the law at the same time.

    Tax the Casinos higher, and they can start cutting the outrageous salaries and perks that the Upper Management receive. The Casinos have demonstrated over and over again that they don't care about us "little people" - all they care about is their precious bottom line.

    We need to start making people & agencies responsible again, and in the process raise the bar on our expectations because they will not willingly do it. A cool concept would be truly open government...no more hiding behind closed doors working out deals not in the publics' best interest. Make these people & agencies accountable for their actions and lack of actions whatever the case may be.

    Do we need people like Senator Reid, Governor Gibbons, David Roger or the AG?...HELL NO!


    whowho wrote on May 30, 2008 08:13 PM: Nevada runs on Gaming, 30+% of the general fund comes from gaming. No matter how you slice it, cutting away the control board is going to hurt the general fund. Passing the cost on to the casinos is going to cause prices to rise, and this country is already in a recession. There is no easy solution to this problem. I think it was an unwise decision to give Nevadans a rebate last year.


    a.n. wrote on May 30, 2008 07:10 PM: Oh, whine, whine, whine......I got some cheese for them.

    henry, thanks for repeating my coined phrase Nevaduh....


    death wrote on May 30, 2008 05:10 PM: too bad there is only one political party in this state and that even the so-called strong teachers union back down to casino interests. the dems are worthless. they've let this idiot gibbons cut whatever he wants. next thing gibbons will cut funding to divorce courts to save himself some grief. why can casinos in LA, CA, MT, etc make tons of money being taxed 15% but not here? Is Nevada that uncompetitive?


    two much tax Tom wrote on May 30, 2008 12:36 PM: We now have to many high paid people in the gaming commission now. Lay 25% off, cut the pay buy 25% and cut 25% of the regulations and the state will do just fine.


    heresanidea wrote on May 30, 2008 10:45 AM: Why doesn't the mega money maker casinos --you know the billionairs -- kick in and balance this out.....oh wait, that makes to much sense, right?! ---


    2zero wrote on May 30, 2008 09:55 AM: Like the gibbons approved "toll" roads, that do not increase our "taxes"; the casinos can pay a toll for services from the gaming control board.

    For example a "toll" for every marker given by the casino that has to go to the county for collection? Or a toll for every time a drink is served to a drunk out of control gambler, or a bigger toll for allowing a known "problem" player to continue wager?


    Judy wrote on May 30, 2008 09:12 AM: Oh gosh, the Gaming Control Board might be affected by Gibbons budget slaying?

    I have an idea: Let's implement a REAL gaming tax... Imagine that, Nevada casinos paying a gaming tax that isn't just a joke token of what they should pay.

    If they paid their share they would not have to worry about the Gaming Control Board losing positions that might affect their bottom line.


    henry wrote on May 30, 2008 08:57 AM: Well, all of you NevaDUHS, did a good job voting for this guy. DUH.....


    TH wrote on May 30, 2008 08:16 AM: Another "bloated" agency? Where do you get your facts to support that accusation? I love "armchair" governmental "experts" who think they know everything about how government is run.


    Read All Comments