Professor calls for policy shift
A high roller's claims that Harrah's Entertainment casinos kept him intoxicated as he lost tens of millions of dollars has given state regulators an opportunity to consider industrywide limits on mixing alcohol with gambling, a longtime university gambling expert said Friday.
Bill Thompson, who has studied gambling for more than 30 years as a professor of public administration at UNLV, said the Nevada Gaming Control Board should do more than just investigate the high-roller's allegations against Harrah's.
"They should consider coming out with a policy that when a certain amount of money has been lost, a casino can no longer serve alcohol at the table," Thompson said. "In this case, the amount of money lost was so extreme that the casino had to be on notice that the gambler did not have full control."
The gambler, Nebraska philanthropist Terrance Watanabe, has alleged that employees at Caesars Palace and the Rio supplied him with a steady flow of alcohol and prescription painkillers during his epic gambling binge at the end of 2007. In all, Watanabe estimated that he lost $189 million in 2007 at the two Harrah's casinos, making him one of the largest "whales" ever on the Strip, according to Thompson and other gaming experts.
Harrah's Entertainment, which prides itself on being an industry leader in responsible gambling, has strongly denied Watanabe's allegations.
His claims surfaced in a criminal case against him over his alleged failure to pay Harrah's $14.7 million in gambling markers in 2007.
On Thursday, the district attorney's office dropped the theft charges after learning that Watanabe and Harrah's, which had sought the criminal prosecution, struck an agreement to settle their civil fight over the markers.
But Gaming Control Board Chairman Dennis Neilander said state agents were pressing ahead with their investigation into Watanabe's claims.
Neilander would not discuss the investigation, but sources familiar with the investigation said agents have interviewed former Harrah's employees who can corroborate some of Watanabe's allegations.
On Friday, Harrah's spokesman Gary Thompson said the world's largest casino company has no plans to change its internal policies over the use of alcohol at gaming tables.
"We have been a leader in responsible gaming throughout our history," Thompson said. "We don't see a need to change the way we deal with our customers."
But Thompson, now a professor emeritus at UNLV, said mixing gambling with alcohol is something that needs to be watched closely.
"If people are on a losing streak, they start chasing their losses unless they maintain control," he said. "Alcohol inhibits their ability to maintain control."
Thompson said he conducted a study of problem gambling in 2003 that found that alcohol abuse worsened a person's gambling habit.
"The gaming board has been a little lax in not recognizing that there should be policies that limit drinking and gambling," he said. "They need to rethink things."
State law prohibits casinos from allowing "visibly intoxicated" patrons to gamble.
Thompson said regulators should meet with representatives from the casinos to discuss reasonable ways to implement the drinking limits.
Neilander and Control Board member Randall Sayer, who oversees the Gaming Enforcement Division, could not be reached for comment on Friday.
Contact Jeff German at
jgerman@reviewjournal.com or
702-380-8135 or read more courts coverage at lvlegalnews.com.
