IMGL Gaming Executives of the Year 2008
By Sharon Harris

The International Masters of Gaming Law (IMGL) is honored to recognize Frank J. Fahrenkopf Jr., president and CEO of the American Gaming Association, and Ernest L. Stevens Jr., chairman of the National Indian Gaming Association, as the Gaming Executives of the Year 2008. Awarded by the IMGL since 2006, the Gaming Executive of the Year recognizes those prominent figures who have dedicated their careers to protecting and expanding the interests of the gaming industry.

Frank J. Fahrenkopf Jr.

Based in Washington, D.C., American Gaming Association (AGA) President and CEO Frank J. Fahrenkopf Jr. has led the American gaming industry since 1996. Raised in Reno, Fahrenkopf, received his undergraduate degree from the University of Nevada, Reno (UNR) in 1962, and graduated from the University of California, Berkeley’s Boalt Hall School of Law in 1965. A small Reno firm then hired him as a criminal trial lawyer. Fahrenkopf got his start in the gaming industry in the 1970s, when he represented Morey Mason and his sons. The Masons’ company, Taylor Construction, built the Las Vegas Hilton and the original Las Vegas and Reno MGM Hotels. He assisted entertainer Wayne Newton and a partner in acquiring the original Aladdin. For several years, Fahrenkopf actively represented Nevada gaming companies. For six years, he also taught in the Criminal Justice Section at UNR.

Fahrenkopf’s earliest out-of-state connection occurred in 1976. As counsel to the Howard Hughes Medical Institute, Washington’s Hogan & Hartson firm hired him as its Nevada counsel following Hughes’ death. "I spent five fascinating years evaluating the estate," Fahrenkopf says. Thanks to Paul Laxalt, the respected Nevada governor, senator and friend of Ronald Reagan, Fahrenkopf’s parallel political and professional lives then soared. He became chairman of the Republican National Committee in January 1983, leaving in 1989 to join Hogan & Hartson. Fahrenkopf initiated Hogan & Hartson’s lobbying practice and international trade department with partner Sandy Berger. When Berger was appointed as Bill Clinton’s National Security Advisor, Fahrenkopf assumed the international trade practice.

A chance conversation in 1992 with then-Hilton Hotels President Raymond "Skip" Avansino launched his career as gaming’s top advocate. "With billions in capital investments, I questioned why gaming lacked Washington lobbyists," Fahrenkopf says. Avansino soon pushed for a national trade association. Hilton Hotels hired Fahrenkopf to prepare legal papers after the Clinton administration’s 1994 proposed 4 percent gross receipts gambling tax.

Thanks to the intervention of the late Arthur Goldberg, former Nevada Gov. Bob Miller, Las Vegas Sun Editor Brian Greenspun and Nevada Senators Harry Reid and Dick Bryan, the issue failed. However, everyone agreed they needed a strong Washington presence. The AGA formed in 1995, and offered its leadership role to Fahrenkopf.

AGA Makes Its Mark

The AGA has evolved in 13 years, now totaling more than 50 members. "Only two originals – Steve Wynn and Terry Lanni – sit on our board," Fahrenkopf says. "No one else was around during those early tough years."

From those tough years to today, Fahrenkopf has directed several major events and programs. In January 1998, the federally legislated National Gambling Impact Study Commission (NGISC) held its first of several public hearings in Atlantic City. The commission aimed to study gaming’s impact on society. AGA leaders attended meetings across the United States for 18 months. "We presented our case, and the June 2000 report reacted positively," Fahrenkopf says. That final report stated that problem gambling affected 1 percent of the population. Members unanimously voted for responsible gaming research in 1995. The AGA created the independent, nonprofit National Center for Responsible Gaming (NCRG) to educate the public and fund gambling disorder research in 1996.

In 2004, the AGA implemented its Code of Conduct, which governs employee and customer education, underage gambling, alcohol service, advertising and research. The code pledges to make responsible gambling an integral part of daily operations at casinos. It also continues its research on relevant issues.

After 10 years, the AGA helped promote Nevada’s Tip Rate Determination Agreement in 2003, which allowed workers to agree to a specific formulated tax rate for their tips for immunity from audits.

Global Gaming Expo (G2E) 2007, organized by AGA and Reed Exhibitions, increased its attendance by 5 percent to a record 30,173 visitors from 99 countries. Using the largest square footage in G2E history, 751 companies exhibited their products and services in 331,000 square feet of space.

To coincide with its 10th anniversary, AGA began to issue a series of Ten White Papers that analyze specific topics facing the gaming-entertainment industry. These include:

• Taxation
• Community Leaders’ Perceptions of Gaming Industry Impact
• Gaming as Entertainment and Recreation/Evolution of Risk-Taking in America
• Impact of Gaming on the Economy (Macroeconomic Study)
• Microeconomic Impact
• Responsible Gaming
• Employee Wages and Benefits
• Work Force Diversity
• Wall Street Impact of the Industry
• Industry Outlook for the Future

What Now?

"Our priority is to avoid harmful federal legislation or bureaucratic action," says Fahrenkopf. "Secondly, I create public awareness by speaking out against the anti-gaming factions. State issues are now a third focus. Governors and state legislatures have unrealistic taxation expectations. I explain the huge tax revenues and added jobs that return money into the community."

Fahrenkopf is accumulating frequent flyer miles by traveling to Asia to counsel individual governments. Interest has increased as an outgrowth of G2E Asia. "In 2002, before Macau’s opening, I advised the Chinese about Las Vegas gaming and the necessity for tough regulation," says Fahrenkopf. "A transparent regulatory and law enforcement oversight system is vital. They followed my recommendation to learn from Nevada and New Jersey."

Fahrenkopf’s Asian participation, underwritten by individual foreign governments rather than members’ dues, promotes his association. By assuring the Asian markets in which his members operate maintain integrity, he protects their American interests.

Fahrenkopf enjoys both his professional and personal lives. He and Mary, his wife of 45 years, live in the metro Washington, D.C., area. They are very proud of their three accomplished daughters – two lawyers and one doctor – Allison, Leslie and Amy. Fahrenkopf also dotes on his three grandchildren.

Ernie Stevens Jr.

For 20 years, National Indian Gaming Association (NIGA) Chairman Ernie Stevens Jr., a member of the Oneida Nation of Wisconsin, has advocated on behalf of tribal governments and is a staunch defender of tribal sovereignty. Stevens’ passion was passed from his father, Ernest Stevens Sr., who taught him the value of participating in government; his mother taught him the value of community and cultural activism.

Stevens’ father spent more than 10 years working in Washington, D.C., as an advocate on behalf of tribes. His work culminated with the finalizing of the American Indian Policy Review Commission study.

When Stevens’ father returned to Wisconsin in 1978, Bingo was just starting to take off for the Oneida Nation. "At that time, it was the humble purpose of generating resources to fix the leaky roof and keep the lights on at the community center," Stevens says.

By 1993, as Stevens was serving on the Oneida Tribal Council, Class III gaming began to reach its full potential. He was elected first vice president of the National Congress of American Indians (NCAI) in 1995, launching 13 years of service advocating on behalf of Indian Country in Washington, D.C.

In that time, Stevens has addressed some of Indian Country’s biggest issues in the halls of Congress and within the federal bureaucracy. "It was not until I was first elected as chairman of NIGA in 2000 that Indian Gaming became my full-time responsibility," Stevens says.

A Focus on Indian Gaming

When Stevens joined NIGA as a tribal representative, he participated in the strategies and initiatives implemented by early NIGA leaders. "My predecessors, Tim Wapato and Rick Hill, were trailblazers in establishing NIGA’s presence on Capitol Hill," he says.

As chairman and one of Indian Gaming’s primary spokesmen, Stevens’ responsibility is to be the voice for NIGA member tribes. He strongly believes that tribes need a unified message when dealing with the federal government. "One unified voice helps tribal governments deal with governmental and public entities, whose actions may negatively impact our Indian communities," he says. "These include Congress, the president, state legislatures and the media."

Stevens’ duties primarily focus on addressing federal legislation and regulation, but occasionally state issues have required his attention. He principally meets with senators and representatives of Congress, the Department of the Interior and the National Indian Gaming Commission (NIGC) to confront and resolve any contentious issues.

"It is my priority to meet and strategize with the national tribal leadership," Stevens says. "During the 109th Congress, we held a record number of meetings with our sister organization, NCAI. We convened several NIGA-NCAI task force sessions, and owe a debt of gratitude to our national tribal leaders, as well as former NCAI President Tex Hall and current President Joe Garcia, for helping to unite Indian Country."

Stevens stresses cooperative planning and proactive public relations, stating: "Public perception can never be taken for granted," he says. "I see my role as always being prepared to inform the public of our successes as well as issues of concern. We must sustain communication with the general public."

Although Stevens actively shares information between tribes and government officials, and often appears before tribal councils, he is indirectly involved with enforcement. NIGA maintains positive relationships with federal and tribal regulatory agencies. NIGA also works closely with tribal regulators across the country and provides training year round.

Economic Success for Indian Country

Steven’s life has radically changed since assuming chairmanship of NIGA. "I travel extensively to speak before federal and state legislatures, and tribal governments," he says.

He is grateful for his family’s support, which includes Cheryl, his wife of 29 years, his five children and six grandchildren. (As of press time, two new grandchildren were on the way).

Stevens is thrilled with the positive impact Indian Gaming continues to have on Indian Country. "I credit tribal leaders," he says. "My father and his colleagues in the 1960s could only dream of this type of economic development and diversification on our reservations. Now, the growth of real economic power can be measured in the financial resources tribes can use to address generations of poverty and neglect. While we have made great strides in the past few years, there is still a lot more we can do and much to be accomplished."

These economic successes include:

• $25.7 billion in gross revenues
• $3.2 billion in gross revenues from related hospitality and entertainment services
• 670,000 jobs nationwide for American Indians and their neighboring communities
• $8.6 billion in federal taxes and revenue savings; $2.4 billion in state taxes, revenue sharing and regulatory payments
• $100 million to local governments and $100 million in charitable donations

The Future of Indian Gaming

On the Indian Gaming Regulatory Act’s (IGRA) 20th anniversary this year, Stevens continues to defend against attempts to amend its language. "Amending the IGRA, including unnecessary business expansion limitations and requiring federal approvals on how tribes use their gaming resources, would negatively impact reservation economies," he says.

Stevens recognizes the irony. "We vigorously defend IGRA now, but in 1988, our veteran tribal leaders opposed IGRA because it diluted tribal sovereignty," he says. "Yet, today we live with this congressional action, and have succeeded beyond the federal government’s greatest expectations. Therefore, any attempt to further dilute those rights brings back those memories from 20 years ago, and the voice of our tribal leadership at the time. It encourages us to protect the gains they made possible."

Going forward, Stevens would like a Congress that holds fact-finding hearings. The tribes could help legislators understand the positive effect this important industry has had on local economies and on the reservation, before they consider legislation. "Lawmakers must realize that Indian Gaming benefits all of America," Stevens says. "Any changes would negatively impact all our communities."

Stevens is proud to extol Indian Gaming. "Indian Gaming is the modern success story," he says. "There is no doubt in my mind Indian Gaming is working extraordinarily well for everyone, both Indian and non-Indian, in the United States."

He also enjoys to good relationship with the American Gaming Association. "I am honored to share the Gaming Executive of the Year award with my friend Frank Fahrenkopf," he says. "I believe our industries are unique in their own ways. Indian casinos are located in some of America’s most beautiful and dramatic venues. Patrons come to relax, but also learn about our native cultures."

For Stevens, Indian Gaming has evolved into a lifeline for his people. "I believe this work offers the best opportunity of surviving as our ancestors did, as independent people, maintaining the values of the past in language and culture, while adapting to the needs of the 21st century."