Casino Connection Nevada

Congressman Jon Porter

Republican, Third District

by Roger Gros

Jon Porter was installed as the first representative in Nevada’s newly created Third District in January 2003. The district includes parts of metropolitan Las Vegas, all of Henderson and Boulder City. Porter is a member of, or has served on, several committees in the House of Representatives: Ways and Means, Budget, Education and the Workforce, Transportation and Infrastructure and Government Reform. Formerly an elected official in Boulder City, Porter was elected to the Nevada state Senate in 1994. Despite coming from the only city in Nevada without gaming (Boulder City), Porter has a keen understanding of the importance of the state’s casino and tourism industry. His ability to represent both the industry executives and its employees are appreciated from the boardroom to the dining halls. Porter spoke with Casino Connection Publisher Roger Gros in his offices in Washington, D.C., in January. To hear a podcast of the interview, during which Porter discusses his efforts to increase tourism in Nevada, the housing crisis and more, go to www.casinoconnectionnevada.com and click on the podcast button.



Casino Connection: There used to be a gaming caucus that Senator John Ensign started when he was in the House of Representatives. Is that still active?

Porter: Yes, there still is a caucus. Congresswoman Shelley Berkley and (New Jersey Congressman) Frank LoBiondo and, of course, a few others are involved. Where we really get engaged is when there are key issues before Congress. We’ve faced serious setbacks with Katrina and what happened to the industry with some of the tax proposals. So we geared up.

We see each other most every day, but when there’s a crisis, we get together even more. And gaming now is in most every state in some shape or form, so it’s very important to many members of Congress.



Indian gaming is an issue that’s active on the federal level right now. There are a lot of discussions about revisiting this year the IGRA bill that passed 20 years ago. Are you in favor of revisiting that act?

Yes, and today is a good example. A hearing is underway about some possible Indian gaming properties in Michigan.

I think we should always be reviewing, looking at what is happening with this particular hearing that may well take away the state’s ability to make a decision. We have a few members of Congress that, in spite of the fact that Michigan voters were opposed, decided to bring it to Congress to make a decision which would change the whole process. I think it should be state regulated and I think states should make the decision.

I am personally not very supportive of the reservation shopping, but I understand that most tribes are doing a tremendous job. They treat their customers well, they’re professional, and I’m pleased that it has been successful. But I’m very concerned about the shopping. I don’t think that necessarily is a good thing.



A few years ago when the Democrats were in control of Congress there was a consideration of a federal excise tax on gaming, and now that the Democrats are back in control, have you heard any discussion of that at any point?

I think our industry is supported in a pretty bi-partisan manner these days. But this Congress is looking to raise, I think, the largest tax increase in the history of the country, a $200 billion to $300 billion increase. So I think that all businesses should be worried and be very cautious. I think that we have proven in the state of Nevada t0he success at regulating it and taxing it by the state, that it’s successful. It’s not a role for the federal government and we’re going to do everything we can to prevent that from happening.



Another federal issue that the industry is concerned about is online gaming. You have co-sponsored a bill to create a federal panel to study that. How would that work?

We know it’s a rough estimate, but experts say online gaming is a $12 billion to $15 billion-a-year industry and we want to make sure that it’s done properly and that there’s proper oversight. I’ve supported, sponsored and co-sponsored legislation with Congresswoman Shelley Berkley to provide a study so that we can find out the facts. It’s happening and we want to make sure there’s not an abuse happening. I think that this is a good way to do it.



Is your approach that it’s happening and there’s not a whole lot we can do to keep it from happening, so we might as well control it and regulate it?

I wouldn’t say that we can’t do anything but I know that, as a representative for Nevada, we’re proud of our industry and of our employees that make it what it is. I just want to make sure that there are not abuses happening. It’s very easy to take advantage of people when there’s no oversight and no regulation.



You’re up for re-election this year. Rumor has it that the Democrats have targeted you as one of the vulnerable seats in Nevada.

When my district was drawn following the census in early 2000 it was really created to be a pretty evenly split district between Democrats and Republicans. We’re the fastest-growing district in the country with many people moving into the district. And when you consider that there’s always a good power struggle in Washington, I am a target and will always be a target.

But I’m proud of my service. I’ve served as mayor of Boulder City and a councilman for 10 years, and was in the state Senate. I also was on the Convention and Visitors Authority board for four years, and then was president of Las Vegas Events, which does the National Finals Rodeo, as well as other things.

I’ve worked hard for the employees of the gaming industry and for the industry, to make sure that we have a vibrant economy.

Yes, I am one of their targets but at the end of the day, I’m convinced that the voters will make the right decision and vote for me.



Let’s talk about some Nevada issues that you may or may not have any role in, but I think some of your opinions are going to be interesting. For instance, the teachers’ union has proposed a 3 percentage point raise in the gaming tax, which I think amounts to a 44 percent increase. Where do you stand on that? How do you feel that should be approached?

First, we need to find some additional revenues to support education. Nevada is unique because of our growth. We’re building two schools a month in Las Vegas. I also know that gaming, right now, is paying a good 60 percent or more of our state budget. I feel that gaming and the business community will come up with a solution, and I know that gaming will pay its fair share. But I don’t think that the way to do it is through a ballot initiative. I think that there are other ways to do it. I believe in the legislative process.

I’m convinced that the gaming industry wants to help and wants to do as much as it can, but we have to also keep in mind that it is a very competitive industry, especially with the economy the way it is today. Any increase in taxes is passed on to our visitors.



Your district in Southern Nevada has been growing so fast that it’s become something of a problem. Do you believe that there should be some sort of control over where, when and how the growth is contained here?

I think the way you properly plan growth is through planning and zoning through your local government. I think Nevada’s done a tremendous job with infrastructure.

We have something unique to the world and that’s part of what has helped develop our quality of life. People want to enjoy our community, and I don’t think it should be done from political measures, other than planning and zoning. As long as we have the proper amount of water, streets and highways, and schools… I think that’s how you handle it.



Last year there was a report that estimated the valley needs $4 billion in road improvements over the next few years. What role can you and the federal government play in achieving some of that revenue?

I just met with Jacob Snow with the Regional Transportation Commission, who oversees a lot of those projects, and I asked that question: Are we talking $4 billion or are we talking $9 billion? He thinks that we’re closer to $8 billion or $9 billion.

I have been very vocal that we should take the I-15 corridor south of Las Vegas into California and work with California to provide some dedicated lanes. Drivers could choose to take a couple of lanes that are free, or they could pay to take the other lanes in the form of a toll. It has to be optional; not a requirement but an option. That could free up a billion dollars or so.

In Boulder City, we’re trying to find ways to fund the bypass around Boulder City once the bridge opens up across the Colorado River. That’s probably another $500 million, where we could offer a possible optional way for people to take a toll around Boulder or go through Boulder. So we’re looking for ways to help. The federal government doesn’t have a whole lot of extra money, so we’re trying to be very creative.



How about improving the mass transit system in the valley?

One of the challenges that we have is that we’re still the Wild West and we like to drive our car wherever we go and we like to park as closely as possible. So we need to find some incentives to help change that culture. That’s why I’ve been working and trying to come up with ways to help the employees commute to work, carpooling or whatever it is to help them reduce their costs but also some of the congestion. We’ve got 40,000 hotel rooms that are going to be coming online. There’s a lot that has to be done.