Pubdate: Fri, 23 May 2014
Source: Las Vegas Review-Journal (NV)
Copyright: 2014 Las Vegas Review-Journal
Contact: http://www.reviewjournal.com/about/print/press/letterstoeditor.html
Website: http://www.lvrj.com/
Details: http://www.mapinc.org/media/233
Author: Howard Stutz
Page: 1A

OFFICIALS UPHOLD KEEPING GAMING OUT OF MARIJUANA

Here's the latest word for Nevada gaming licensees who want to plunge 
into the state's new medical marijuana marketplace: The answer is still no.

The Nevada Gaming Commission voted Thursday to uphold the state 
Gaming Control Board's edict earlier this month that keeps anyone 
with a gaming license from investing in or owning a medical marijuana 
dispensary or growing the plant for use in the budding industry.

In a May 6 industry notice, the Control Board said license holders 
should stay away from state-sanctioned medical pot because the 
federal government still views distribution, possession and sale of 
the drug as a crime. The control board warned even potential gaming 
license applicants to stay away from the pot trade.

Thursday's vote affirming that notice was 2-0 - three of the five 
commission members, all lawyers, recused themselves because members 
of their law firms represent clients with medical marijuana interests.

The flat rejection followed impassioned testimony from a stream of 
attorneys, elected officials and a gaming license holder during a 
90-minute hearing. They all made the same argument: Nevada gaming 
license holders would make the best medical marijuana moguls because 
they have already been thoroughly investigated by gaming regulators.

"A gaming license is hard to earn and it's hard to keep. We need to 
comply with regulations in order to keep that license," said M Resort 
CEO Anthony Marnell III, who owns 71 percent of Clear River LLC, an 
applicant for a Clark County medical marijuana license. "We are the 
most vetted people in Nevada. Nobody is more qualified than a Nevada 
gaming licensee."

Marnell said he spoke as an individual, not as CEO of M Resort or as 
an employee of Penn National Gaming and its affiliate company, Gaming 
and Leisure Partners.

Gaming Commissioner Tony Alamo Jr., who is a physician, said he "100 
percent supports the use of medical marijuana as a drug of last resort."

But as a gaming regulator, he said, it's a different equation.

"I 100 percent agree with the board's stance," Alamo said. "We can 
not blur lines. The board did the right thing."

Alamo and Commissioner Randolph Townsend voted to affirm the control 
board's notice.

Commission Chairman Peter Bernhard and commissioners Joe Brown and 
John Moran Jr. participated in the hearing but didn't vote.

The commission did ask Gaming Control Board Chairman A.G. Burnett if 
his board wants to rewrite its notice, and was told it does not.

"I do not have a flavor to work on this any further," Burnett said. 
"The board notice is well-written and clear."

Gaming Control Board member Terry Johnson wrote the industry notice 
now posted to the agency's website. He, along with Burnett and board 
member Shawn Reid, said it would tarnish the gaming industry if 
federal prosecutors were to slap a Nevada gaming licensee with a 
felony for distributing marijuana.

"Accordingly, unless the federal law is changed, the board does not 
believe investment or other involvement in a medical marijuana 
facility or establishment by a person who has received a gaming 
approval or applied for a gaming approval is consistent with the 
effective regulation of gaming," Johnson wrote. "Further, the board 
believes that any such investment or involvement by gaming licensees 
or applicants would tend to reflect discredit upon gaming in the 
state of Nevada."

Clark County became the first jurisdiction in Southern Nevada to 
accept applications for marijuana-related businesses after approving 
regulations in March.

Clark County Commission Chairman Steve Sisolak on Thursday told the 
gaming commission his agency needs to "fully understand the 
requirements and prohibitions established" by the control board.

He said he worries that gaming licensees who simply lease real estate 
to medical marijuana businesses could jeopardize their licenses.

He told the gaming panel that many of the county's 80 applicants for 
medical marijuana licenses also hold either restricted or 
nonrestricted gaming licenses - which he considers a plus.

"I put a silver star on every one of the people applying for a 
medical marijuana license who have a Nevada gaming license because 
they have been vetted," Sisolak said.

Outgoing Assembly Majority Leader William Horne, who is an attorney, 
said understanding the rules is important in granting someone a 
medical marijuana license.

Horne, who is running for District Court judge, said the Legislature 
was concerned about the "caliber of people" who will be licensed to 
handle medical marijuana.

"Gaming people are the most vetted," Horne said.

Medical marijuana has been legal in Nevada since 2000 but only last 
year the Legislature enacted a law to allow as many as 66 medical 
marijuana outlets statewide. Counties will determine specific rules 
for their location and operation.

Distributing medical marijuana is under a county-by-county framework.

Clark County has approved plans for 18 locations while the city of 
Las Vegas plans 12.
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MAP posted-by: Jay Bergstrom