Vol. 5 No. 3, March 2008
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Interviw with Congressman Frank LoBiondo
Republican, District 2
Casino Connection: Let’s talk about the congressional gaming caucus that you had a role in setting up.
Congressman LoBiondo: I found myself a freshman congressman-elect with about 70 others like me, including John Ensign from Nevada. They had us in orientation, and without knowing much about John or where he was from, we had a very good chemistry. After spending some time with each other, we very quickly realized that we both represented similar interests. We talked about how we could improve how we represent those interests, our constituents, our districts, and came up with the gaming caucus. We were co-chairs, and it ended up being something very productive for the people we represent.
And it is bipartisan, correct?
It is bipartisan, it always has been and I hope it always will be. Nevada’s Shelley Berkley has taken the lead this year. She has been involved with us since she was elected to Congress. We’ve had various folks become involved and take lead positions, focusing on what we can do for our constituents in the gaming industry.
Congress has been looking at internet gaming. There have been several bills allowing certain kinds of internet gaming and not others. I believe you are a co-sponsor of a bill to set up a federal study panel. Where is that going?
I think that’s the way to go. The bill that Congressman (Barney) Frank has, out of the Financial Services Committee, is well-intended, but presents big problems. If we are to move forward, we really need to do it right, and the current situation is not right.
The bill I’ve co-sponsored with Congressmen (Jon) Porter and Berkley of Nevada would set up a study commission so that, with today’s state-of-the-art technology, we could intelligently and accurately determine what is the best course of action to take.
While the gaming companies have been rather low-key on Chairman Frank’s bill, I think it’s pretty clear they’d like to see this study.
My fear is that this could be the front edge of a federal agency to get the federal government involved with casino gaming. Some people want to see federal regulation and federal taxation. If you have the feds create their own agency to regulate internet gaming, then who’s to say they won’t pass a bill regulating all gaming? I don’t think so. Not from my vantage point.
You’re up for election this year and rumor has it the Democrats have targeted you as one of the vulnerable seats in New Jersey. Do you believe the Democrats are wielding more power in your district, and what’s your outlook on the upcoming race?
I have officially been targeted by the DCCC, the Democrat Campaign Congressional Committee. It is pretty clear that New Jersey is a much bluer state than it was just a few years back. Whether it’s the Democrats in Washington or the Democrats in New Jersey, they’re looking at what the recent trends have been.
I take every race very seriously. I’m preparing this time for a full-blown attack, if you will, because I think that’s their method of operation. I always work very hard at doing the best to represent my constituents, so I don’t think it’s a situation where people haven’t heard from me or seen me and all of a sudden, three months before the election, LoBiondo shows up. Rarely a weekend goes by that I’m not at multiple events for one reason or another.
In addition to being very bullish on Atlantic City, I’ve been a strong advocate for the environment, healthcare, education and a whole host of other things that I think people can relate to in the real world.
Things happen in Washington and sometimes it’s very complicated. The wording is difficult. But back-home people get it if you can easily explain what you’re doing and why. It’s been a great honor to represent the district, so I welcome the opportunity to talk about what I’ve done and where I’d like to go from here.
One issue that keeps coming up in the Atlantic City area is sports betting. Do you see any hope that we could revive that issue, even get New Jersey a second bite at the apple, so to speak?
First of all, I’ve been a strong supporter of sports betting. It’s a component that makes all the sense in the world. Like internet gaming, we know that sports betting is going on, we know it’s not being done legally, and we know that this can cause big problems. I think Nevada and the other jurisdictions that have it have proven that it’s very viable. It’s another tool the casinos can use to continue with the economic stimulus they’re providing in the jobs.
I was disappointed when New Jersey didn’t have the ability to vote in the early ’90s on this, but it appears that legislative action is proceeding. New Jersey has a rather unique point of view, in that the federal laws are unconstitutional for interstate commerce reasons. So the state, if in fact it passes and enacts this, can challenge the feds in court. I would welcome that. I’d love to see us be victorious. I think it would be a great win for New Jersey and for Atlantic City. I’m a little bit unclear what the Senate’s going to do, but I’d love to see it on November’s ballot.
Atlantic City is on its third mayor in less than a year. An election in November could even bring a fourth mayor. Do you favor any kind of state control over Atlantic City?
Well, it’s a huge concern. It’s been a black eye for Atlantic City, it’s been a black eye for New Jersey. I’ve had to bite my lip about what’s going on. I hope Atlantic City (officials) can understand how fragile the people’s confidence could be if the wrong things happen.
If New Jersey were a state where they were running a surplus, where the government was running extremely well, where people were coming to the state instead of flocking away from the state, then maybe it would make some sense to suggest that we look at New Jersey taking over Atlantic City.
As bad as Atlantic City is, to imagine that the state of New Jersey would take it over and do to Atlantic City what they’ve done to the rest of the state is a horrifying thought. And I would not support that in any way, shape or form at this point.
Governor Corzine has proposed a huge revenue raiser in boosting the tolls in New Jersey. Obviously there’s a huge budget deficit there. Are you in favor of his proposal, or would you favor some other way to close that budget deficit?
The plan the governor is recommending is very, very problematic. The governor’s answer to that is, “Give me the solution to this.” But to borrow more than $30 billion and have a $110 billion or $120 billion payback, run it over 75 years and not give the voters a chance to say something about it, I think is wrong.
The racing industry was paid $80 million over the last three years and they’re looking for somewhere around $100 million for the next three years. Where does it end?
I think it’s terribly wrong. It’s almost like somebody on the street coming up to you and saying, you know, I know where you live, I know where your kids are, I have a gun, and you’re either going to pay me a $1,000 or something bad is going to happen.
So if the Atlantic City casinos say they’re not going to pay this money, we know they’ll been threatened with VLTs and who knows what else. It’s very bad policy and if these racetracks are so important, then why aren’t people supporting them?
In our society, if you do well, you succeed. The casinos should not have to pay for the faults of the racing industry and its inability to run a profitable business.
