By now, most readers of this site are aware of the campaign kicked off by the Nevada Development Authority to lure California businesses across the state line. The Nevada ads faced counter advertising, which sang the praises of California. The Golden State commercials were created for and paid by Assemblyman Jose Solorio (D-Santa Ana).
But, while Nevada has grounds to belittle the business environment in California, this effort to lure businesses could backfire if California, in turn, goes after Nevada’s main prize – its gambling empire.
This idea of hitting Nevada where it hurts came to me after reading a column by Los Angeles Times sportswriter, Kurt Streeter. He argued that California should allow gambling through sports books and use the fees to help pay down the state debt. Legalize it and tax it, Streeter says.
Delaware recently tried to establish sports betting. It was one of four states exempted from federal law, which bans the practice. A federal court ruling upset Delaware’s plans, but as Streeter says, “It’s time to give the federal ban the boot. This is one of those deals where the people have spoken through their actions. And the people, tens of millions of them, clearly like the thrill of the gamble. To restrict it simply goes against the wishes of too many.”
California, in theory, anyway, carries more weight than Delaware and could lead the revolt against the federal law. Congress should be relieved that the states would have a new way to capture revenue instead of coming to Washington hat in hand.
Sure, the issue of the Indian casinos would have to be dealt with. But, there probably is a negotiation that would work. The idea of establishing gambling in California to bring in revenues is not a new one. When he was mayor of San Francisco, Willie Brown suggested creating a gambling paradise on the appropriately named Treasure Island in San Francisco Bay when the Navy decided to cease operations there.
If nothing else, California’s serious pursuit of such a move would send a shiver down the Vegas Strip. The good folks from Nevada would know when they start poaching with popguns their neighbors to the West might employee the big bomb.