While Congress has only been back for a short time, there was one issue they almost unanimously agreed on, which was for Las Vegas casinos to be protected financially from a major terrorist attack. A bill which would renew a 2002 federal program designed for just that passed the new Republican Congress last week, and signed into law by President Barack Obama last week.
The legislation, called the Terrorism Risk Insurance Act, or TRIA, promises insurance companies the government will come in and help pay for damages above $200 million due to a terrorist attack against a major commercial business. The program, which was created after 9/11, encourages insurance companies to offer casinos, hospitals, stadiums, hotels, universities, and shopping centers coverage for a large-scale terrorist attack.
Yes, the possibility of a terrorist threat to Las Vegas is highly unlikely, but unfortunately something which must be considered in the post 9/11 world. Last year, an English-language Al Quada magazine provided instructions for readers on how to make bombs, and encouraged them to target Las Vegas Casinos.
Casinos, in general are at risk due to their sheer magnitude. Caesars Entertainment welcomes the insurance even with the low odds of an attack. Caesars spokesman Gary Thompson said, “casinos are a potential target, as are other businesses, for terrorists because there are large numbers of people who are potential victims.”
In addition to the devastation from such an attack, it could potentially cripple the state economy. Nevada Senator Dean Heller (R.) said, “If a terrorist attack were to occur, our entire state economy would be devastated without TRIA.” The law has been touted as a job creator as well. When a casino is looking for a loan to build an expansion, they usually have to prove to banks they are insured for a terrorist attack. Due to the massive payouts that would potentially be required, insurance companies have been reluctant to provide coverage.
The program actually ended at the end of last year, making several developers nervous. Geoff Freeman, CEO of American Gaming Association, said in a letter to the Senate Banking Committe last June, “Without TRIA, the gaming industry will face costly difficulties in obtaining coverage, often required for critical community investments.”
The latest bill keeps the program running for six more years. Every member of Nevada’s congressional delegation voted for it.
