House stimulus excludes gaming

It declared that none of the $600 billion made available through fresh spending in the stimulus legislation could be used "for any casino or other gaming establishment."

Aquariums, zoos, golf courses and swimming pools were similarly restricted.

The discovery in the 650-page bill several weeks ago spurred action by industry lobbyists and representatives from Nevada to ensure its impact would be narrow.

By the time the bill passed the House last week, several said they believed the damage effectively had been limited.

Like other industries struggling through the recession, resort companies still would qualify for valuable tax breaks and other benefits aimed at saving jobs.

By the time a final bill emerges from Congress this month, the officials predicted the gaming company restrictions will be gone, although at least two amendments being considered this week in the Senate also seek to deny stimulus grants to gaming.

The episode, sparked by reaction to a request to use the stimulus bill to help fund the Las Vegas mob museum, has sent a ripple through the industry. Gaming tries to keep a low profile on Capitol Hill but occasionally must fight efforts to single it out as a sin trade, even if symbolically.

The gaming industry "would have preferred for the perception not to have this included," a lobbyist said Wednesday.

Rep. Shelley Berkley, D-Nev., said Wednesday that after she noticed the provision she "lobbied very heavily to get it out" and failing that "to make sure it was restricted."

"Then I called (Sen.) Harry Reid and advised him it was coming over (to the Senate), and he said he would take care of it," Berkley said.

Jim Manley, a spokesman for Senate Majority Leader Reid, said since no earmarks are in the stimulus bill, there is nothing that can be given to the casinos in any case. The restrictive language "is a solution in search of a problem," Manley said.

The American Gaming Association, the industry’s lobbying arm in the capital, declined to comment on what a spokesman said was an unresolved issue.

As it debated its version of the stimulus bill Wednesday night, the Senate defeated an amendment by Sen. David Vitter, R-La., that sought to cut costs of the stimulus bill. It also tried to add the House restrictions on gaming and recreation.

Sen. Tom Coburn, R-Okla., has created a similar amendment singling out gaming and might offer it today, a spokesman said.

This would not be the first time casinos have been singled out. In 2005, gaming critic Rep. Frank Wolf, R-Va., and other social conservatives tried to prevent gaming companies from qualifying for federal aid to rebuild Gulf Coast properties damaged by Hurricane Katrina. A compromise was reached eventually.

This time, Berkley said, the restriction was an outgrowth of the controversy over Las Vegas Mayor Oscar Goodman’s request for stimulus money to support the city’s proposed mob museum.

As the mayor’s request was met with mockery, House Appropriations Committee Chairman David Obey of Wisconsin inserted the language underscoring that casinos and gaming would get no favors.

Appropriations staff thought the provision would head off further debates over Las Vegas earmarks. But, Berkley said, "I thought they were very arbitrary."

Berkley said she complained to Obey and worked to ensure that the gaming companies would not be restricted from taking part in tax breaks and other strategies in the stimulus bill.

Contact Stephens Washington Bureau Chief Steve Tetreault at stetreault@ stephensmedia.com or 202-783-1760.