Politics Caused Harrah's to Change Beers

CARSON CITY, Nevada – As reported by the Las Vegas Review Journal: "It was a beer distributor's political views, not a better deal from Coors, that caused Harrah's Entertainment to drop Budweiser sales at its Lake Tahoe casinos, the company confirmed Tuesday.

"The company's two Lake Tahoe casinos stopped buying Budweiser from Capital Beverages in August.

"Last week, several legislators said FBI agents were checking into allegations that Capital Beverages' owner was punished for opposing a tax proposal that gaming companies favored.

"At that time, Harrah's spokesman Gary Thompson said the company stopped selling Budweiser because it got `a better business deal from Coors.'

"On Tuesday, Thompson said he later learned of letters that Harrah's Chairman Phil Satre and Capital Beverages' owner Kurt Brown exchanged earlier this year.

"….Satre responded in a letter dated July 8. He told Brown he was entitled to `hold and express your political views.' But Satre added that Harrah's enjoyed the same right.

"…He said the company's Lake Tahoe casinos would "no longer do business with an entity whose actions support a course that is detrimental to Harrah's financial interest and the financial interests of the state."

"…Last week, three legislators said the FBI was checking into allegations that Lake Tahoe casinos stopped buying beer from Capital Beverages because Brown opposed the gross receipts tax.

"…State officials do not think the retaliation against the beer distributor violated any laws or lobbying regulations.

"Legislative Counsel Bureau Administrator Lorne Malkiewich said he knows of no laws broken by businesses that refuse to do business with someone whose political stances they oppose…"