Nevada
Why not incentivize housing instead of Hollywood? | Pat Hickey
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Recently, two headlines caught my eye. The first: Nevada plans to roll out the Hollywood red carpet with public tax breaks for private studio companies — Sony Pictures and Warner Bros. The other: The University of Nevada, Reno plans a new 400-unit public-private apartment complex near campus for faculty, staff and students.
Both proposals utilize tax-credit financing to incentivize businesses to meet Nevada’s needs.
To my mind, if it becomes a question of what is our most pressing priority, I would pick an affordable supply of homes for our Nevada towns over the lure of Tinseltown coming to our southern desert.
When I think of the future of a Nevada film industry, I don’t see it becoming a blockbuster. Gone is the glamour and dream-like entity that once was embodied by Hollywood. A successful sequel to the magic of movie-making success seems unlikely — whether it’s located in Studio City, California, or Summerlin, Nevada.
The curtain appears have come down on that once glorious period. Like the end of the the Old South’s saga in Hollywood’s “Gone with the Wind,” a bygone era of mystique and dominance is likely no more.
The slow death of cinemas
Hollywood was once the symbol of creative genius. Movies served as the vehicle for global storytelling. It was the place where human’s dreams were brought to life. Films in local movie theaters were once the crown jewel of the film industry. It’s hardly the case these days.
For me, it’s partly because the two cinemas where Shin and I used to spend Friday nights — dinner and a movie — are now shuttered. Reno’s downtown Riverside Theatre and Lake Tahoe’s Heavenly Cinema have both closed amid declining ticket sales, increased competition from streaming services and changing consumer habits, such as favoring movies at home. More than 1,000 U.S. theater screens have closed since 2019, and total box-office revenue remains well below pre-pandemic levels.
Hollywood’s demise has a lot to do with what has appeared on movie screens in recent times. Instead of creative, bigger-than-life sagas of the human spirit in all its varied forms — in war, peace, romance and even crime — today’s Hollywood films typically rely upon remakes, sequels and prequels of past glories, computer-generated comic book super heroes extravaganzas or horror flicks designed to frighten, or simply disgust. Call me old-fashioned. The fact is, this once avid filmgoer has become just plain disinterested. Many of my younger friends seem much the same, for their own reasons.
Even famed Oscar-winning Hollywood film director Martin Scorsese has soured on all the comic book super-hero types now frequently served-up by today’s bottom-line studios. In an interview with GQ Magazine, Scorsese says, “Superhero movies are “not cinema,” comparing them to theme parks rather than the art form of human emotion and psychological experience. He argues that they prioritize spectacle and commercial interests over artistic expression and that Hollywood’s financial dominance by these “franchise pictures” is pushing other types of films to the margins. The Oscar-winning director went on to say: “Theaters have become amusement parks.”
The last time I checked — some of those theme parks are closing as well.
Is a Nevada film industry a good investment?
In a recent Wall Street Journal story titled “L.A.’s Entertainment Economy Is Looking Like a Disaster Movie,” the newspaper reports: “The entertainment industry is in a downward spiral… Work is evaporating, businesses are closing, longtime residents are leaving and the heart of L.A.’s creative middle class is hanging on by a thread. Hollywood’s downturn has rippled through the region’s economy.”
Which is why some Nevadans believe luring struggling Hollywood film studios here could be a wise pursuit. As reported by The Nevada Independent, a PAC funded with $1 million by a coalition of building trades unions is preparing “to spend big to shape public and legislative opinion to pave the way for film tax legislation” if a special session is convened by the governor.
Incentives to motivate companies to relocate to Nevada have always been a tax tool in the state’s arsenal. A low-tax, limited-regulatory business environment has benefitted Nevada’s growth spurts throughout its history.
Transferable tax credits were a device to bring the Teslas of the world to Nevada. Acting like coupons that could be sold to other companies to help offset a company’s initial investment, they’ve worked effectively to attract major new industries and sports franchises to Nevada — even though libertarian organizations like the Nevada Policy Research Institute have consistently opposed having government “pick winners and losers.” Pick we did in the case of Tesla, and overall, I believe Nevada ended up a winner with the electric-vehicle company that helped usher the state into the era of advanced manufacturing.
I’m not so sure bringing Hollywood studios here would yield the same return on investment. Beyond the turmoil in California’s film industry, other states — such as New York and Georgia, with far larger economies and infrastructure, and nearby New Mexico and Utah — are already far ahead of Nevada in attracting films to be made outside of Hollywood.
While I support the livelihoods of construction workers — whose well-being is tied to the state’s overall health and the ancillary benefits of growth and development — I believe there are more pressing needs and far better opportunities for Nevada than becoming another annex for an on-the-ropes Hollywood.
Why not incentivize housing instead of Hollywood?
Two times, movie studio executives have tried to pass legislation to expand Nevada’s film tax credit program. They hope a Special Session, expected to be called soon, may be their third-time charm.
Should the public, through its elected representatives from both political parties, fail to get on board with the latest “central casting” call from Hollywood executives, I’d recommend another way to get creative.
Like UNR just did.
The national housing crisis manifests in many forms, but most impactful is the severe shortage of affordable housing units. State and local municipalities are increasingly taking action to build and preserve affordable housing. Localities can deploy a wide range of tools and investments: tax abatements and exemptions, tax increment financing, payments in lieu of taxes, public land contributions, low-interest rate loans, voucher deployment and more.
Instead of $1.4 billion over the next 15 years in tax credits for a film studio complex and related businesses, why not use those potential transferable tax credits as an economic development tool to help finance and provide a source of equity to fund construction of housing or rehabilitation for affordable housing for key segments of the economy, such as teachers, medical professionals and seniors. Large industrial partners like Tesla could be incentivized or make good on the “housing and infrastructure” promise Elon Musk made to the region and his own employees.
Better we do things for Nevadans who are already here than for those we hope to migrate here from Los Angeles.
Legendary Hollywood filmmaker Frank Capra (“It’s a Wonderful Life”), once said, “Only the daring should make films. Only the morally courageous are worthy of speaking to their fellow men for two hours, and in the dark”.
Nevada could use a little of that daring and courage. Hollywood may not be the answer. But the housing needs of many of our own families certainly are.
Your thoughts? At: tahoeboy68@gmail.com.
“Memo from the Middle” is an opinion column written by RGJ columnist Pat Hickey, a member of the Nevada Legislature from 1996 to 2016.
Nevada
Promoter of election conspiracy theories wins GOP primary for Nevada secretary of state
Las Vegas (AP) — Former state lawmaker Jim Marchant won the Republican nomination for Nevada secretary of state on Monday, bringing one of the state’s most outspoken promoters of election conspiracy theories within reach of the office that oversees voting in a perennial presidential battleground.
His win after Nevada’s June 9 primary sets up a rematch in November with Democratic Secretary of State Cisco Aguilar, who prevailed in their race four years ago.
The winner will oversee the 2028 presidential election in Nevada, a state that went for President Donald Trump in 2024 after voting for Democrat Joe Biden four years earlier.
Marchant has long questioned Nevada’s voting security. He claimed both he and Trump were victims of election fraud in 2020 when Marchant lost his bid for Nevada’s 4th Congressional District against Democratic Rep. Steven Horsford, despite officials finding no evidence of any widespread fraud.
He claimed that mail ballots were fraudulent, despite using that method to vote while he was a registered voter in Florida.
In December 2020, he stood alongside the six Nevada Republicans who signed fake electoral certificates claiming Trump won the state — when in fact Biden won Nevada that year by more than 33,000 votes. Those six Republicans continue to face charges filed by the attorney general’s office.
The Nevada secretary of state at the time, a Republican, had her office review multiple claims of fraud submitted by Republicans and found them to be baseless or already under review, specifically refuting thousands of allegations. An Associated Press investigation of potential fraud cases in the six battleground states where Trump disputed his 2020 loss found fewer than 475 overall, far too few to affect the election. In Nevada, the number of possible voter fraud cases represented less than 0.3% of Biden’s margin of victory in the state.
Marchant defeated Gov. Joe Lombardo’s endorsed candidate for secretary of state, Shirley Folkins-Roberts, who had denied there was widespread fraud in Nevada’s elections, and former lawmaker Sharron Angle. Folkins-Roberts conceded the race in a Monday statement.
“Despite being massively outspent in this election, I’m proud to again be chosen by Nevada conservatives to be their champion in the race for Secretary of State,” Marchant said in a statement.
Marchant reported raising and spending no money ahead of the primary. Folkins-Roberts reported spending about $11,000, and Angle reported $20,000 this year, according to the latest campaign finance reports.
If elected, Marchant wants to eliminate electronic voting machines and end the state’s universal mail ballots. He also wants to require paper ballots, which would be counted by hand, according to his campaign website.
Aguilar, who ran unopposed in the Democratic primary, has promoted his efforts to streamline Nevada’s election processes and improve voter turnout. He also highlighted a bill he successfully helped steer through the Legislature that makes it a felony to harass election officials.
During his tenure, Aguilar spearheaded a transition to a new voter registration and election management system and in 2024 organized a polling location at Allegiant Stadium.
In his statement, Marchant called his win a “victory for voter ID.” He is a staunch supporter of implementing voter ID, a ballot question that passed by a wide margin in 2024 and will be before voters again in November. Aguilar has previously said voter ID is a solution to a problem that does not exist, but also said he respects the will of the voters and will work with the governor and local election officials “to continue strengthening our elections.”
Aguilar’s campaign declined to comment about Marchant’s victory in the GOP primary.
Nevada
Hurricanes party with Stanley Cup at Las Vegas Strip nightclub
LAS VEGAS (KSNV) — The Carolina Hurricanes didn’t have to travel far to celebrate their Stanley Cup championship.
Several players were spotted partying at Omnia Nightclub at Caesars Palace early Monday morning, just hours after winning NHL’s championship against the Vegas Golden Knights.
Video captured by the Review-Journal’s John Katsilometes shows someone hoisting the Cup behind a DJ as music and smoke fill the club.
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Carolina defeated Vegas 3-0 on Sunday at T-Mobile Arena, just a mile south of Caesars Palace, to win the Stanley Cup Final in six games.
Nevada
Nevada Gaming Control Board asks state court to hold Kalshi in contempt – CDC Gaming
Arguing Kalshi is taking hundreds of millions of dollars in wagers on the World Cup and the NBA and Stanley Cup finals, the Nevada Gaming Control Board Friday asked a district court to hold the prediction market operator in contempt, arguing it hasn’t complied with a May 18 judicial order against offering sports betting in the state.
Filed with the First Judicial District Court for the State of Nevada, the filing accuses Kalshi of not geofencing its operations as required, so that “it does not offer or facilitate the offering of any sports-, election-, or entertainment-related event contracts” to anyone located in Nevada.
“Kalshi’s stubborn refusal to comply with the preliminary injunction is causing severe and ongoing harm to Nevada, its finances, and its citizens,” the court filing said. “Every day, Kalshi takes in hundreds of millions in wagers on such events as the NBA Finals, the Stanley Cup Finals and FIFA World Cup. At the same time, Kalshi is severely harming the gaming industry because it refuses to follow the same rules as its licensed sportsbook competitors who actually geofence. This is an intolerable state of affairs. In light of the Board’s investigation and Kalshi’s own admissions that establish its violation of the court order, the court shall hold Kalshi in contempt. Kalshi will never get the message otherwise.”
The Board requested the court to enter a finding of contempt and to impose significant monetary penalties for violation of the court order — either a “disgorgement of all ill-gotten gains” or a sanction of $120,000 a day.
“The court has required Kalshi to stop offering covered event contracts in Nevada,” Board Chair Mike Dreitzer said in a statement. “We will continue to vigorously enforce Nevada law to safeguard gaming in our state.”
In its filing, The Board said that Kalshi by its own admission has spent $190,000 on what regulators referred to as a “homegrown solution that relies only on internet protocol geofencing solutions” that regulators called “notoriously unreliable” for determining user’s locations. The Board accuses Kalshi of being unwilling to use accurate commercial geofencing solutions.
“This is just more from the same old Kalshi playbook; delay, delay, delay,” the court filing said. “Rather than comply with the court’s order Kalshi has taken only a half-hearted and ineffective measure, apparently hoping that the court will deem its meager efforts good enough, so that it can continue profiting at the expense of the state and its citizens.”
The Board said investigators were able to purchase sports betting contracts on Kalshi’s app for NBA playoff games, MLB games, a boxing match, a tennis match, and a celebrity wedding.
The Board has taken action in recent months to halt the operations of other prediction markets in the state and has successfully restricted all unlicensed prediction markets that had been known to be operating in Nevada, Dreitzer said.
The Board considers the offering of sports event contracts, along with certain other event contracts to constitute wagering activity under state law, meaning they must be licensed.
“Nevada’s public policy, as expressed by the Legislature, is that the gaming industry is vitally important to the economy of the state and the general welfare of the inhabitants and therefore must be licensed, controlled, and assisted to protect the public health, safety, morals, good order, and general welfare of the inhabitants of the state,” Dreitzer said.
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