Nevada Fights Laxalt on Gambling Data : Senator Asks Access to State Files in Connection With Libel Suit

The Nevada attorney general’s office has asked a federal judge to quash a subpoena from attorneys representing Sen. Paul Laxalt (R-Nev.), who are seeking access to state Gaming Control Board files.

In a motion filed Friday, Deputy Atty. Gen. James Giudici said attempts to search sensitive state gaming records by Laxalt or McClatchy Newspapers, his opponent in a $250-million libel suit, should be denied because they would amount to a “fishing expedition.”

Giudici added that it now appears that Nevada is about to become an unwilling party to Laxalt’s widely publicized lawsuit.

The state’s motion argues that the subpoena violates the 11th Amendment to the Constitution, which protects states from invasion by the federal government or private parties.

Giudici also argued that Laxalt’s subpoena would disrupt Gaming Control Board operations and interfere with the state’s ability to regulate gambling.

Senator Suing Papers

Laxalt, Nevada’s senior senator, sued the Sacramento Bee and its sister papers in Fresno and Modesto for a 1983 article alleging that the Ormbsy House Casino in Carson City was “skimmed” of millions of dollars while under Laxalt’s control.

The article further stated that the money flowed to a Milwaukee organized crime family, although the newspaper did not say whether Laxalt was aware of the scheme.

The issue of access to state gaming files could be a crucial factor in the case, because both Laxalt and McClatchy Newspapers are expected to rely heavily on the files in presenting their cases.

The state does have some precedent to back its motion. U.S. Magistrate Phillip Pro of Las Vegas recently turned down NBC-TV’s request to search gaming files to defend itself against a lawsuit by entertainer Wayne Newton.