Budget cuts ordered by Governor Jim Gibbons could have a negative effect on Nevada’s gaming industry by leaving several divisions understaffed.

The state is facing a budget shortfall, and Gibbons is ordering all state agencies to submit budgets that include a 14 percent reduction in spending.

The Gaming Control Board is operating under a budget of $45.8 million for 2008. It had planned a $34.1 million budget for 2009, but now must trim that number down to $29.3 million.

Control Board Chairman Dennis Neilander refused to comment on the cuts.

Bill Bible of the Nevada Resort Association spent 10 years as control board chairman. He said it is unlikely that the agency can make the cuts and still perform all the operations it currently performs.

“You’ve got to assume that all the low hanging fruit has already been taken,” he said. “Once the board determines where the cuts need to be made, certain functions might not be able to be funded.”

Possible ways to reduce the budget include laying off 40 to 50 staff members and closing smaller offices throughout the state.

The agency makes some money from licensing fees, and the areas that handle licensing investigations are unlikely to be affected. Most likely, the cuts will come to auditing departments—currently major casinos are audited every three years, but state law only requires that to happen every five years—and casino customer complaint department staffs might be reduced.

By Casino Connection Staff

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