Campaign Finance: Contributions From Gambling Interests Have Increased
(Letter Report, 07/27/1999, GAO/GGD-99-127).

Total contributions from gambling interests to federal candidates and
national party committees rose from $1.1 million in 1992, a presidential
election year, to $5.7 million in 1998, a midterm election year,
according to the Center for Responsive Politics--an independent research
organization that GAO contracted with. This represents an increase of
about 400 percent. During this same period, overall election campaign
receipts in hard money to congressional candidates and in soft money to
national party committees rose about 40 percent, according to Federal
Election Commission information. The data GAO obtained on contributions
from the gambling industry are likely to be conservative, primarily
because (1) specific sources of contributions from individuals that
total less than $200 in a year are not identified, (2) contributions
from some corporations and groups that may be associated with the
gambling industry may not be included in the Center's analysis if the
main source of their revenue is from another industry, (3) the industry
or interest associated with some contributions could not be identified,
and (4) contributions from the gambling industry to state and local
party committees are omitted.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  GGD-99-127
     TITLE:  Campaign Finance: Contributions From Gambling Interests
	     Have Increased
      DATE:  07/27/1999
   SUBJECT:  Political contributions
	     Election campaign financing
	     Political candidates
	     Financial disclosure

******************************************************************
** This file contains an ASCII representation of the text of a  **
** GAO report.  This text was extracted from a PDF file.        **
** Delineations within the text indicating chapter titles,      **
** headings, and bullets have not been preserved, and in some   **
** cases heading text has been incorrectly merged into          **
** body text in the adjacent column.  Graphic images have       **
** not been reproduced, but figure captions are included.       **
** Tables are included, but column deliniations have not been   **
** preserved.                                                   **
**                                                              **
** Please see the PDF (Portable Document Format) file, when     **
** available, for a complete electronic file of the printed     **
** document's contents.                                         **
**                                                              **
** A printed copy of this report may be obtained from the GAO   **
** Document Distribution Center.  For further details, please   **
** send an e-mail message to:                                   **
**                                                              **
**                                            **
**                                                              **
** with the message 'info' in the body.                         **
******************************************************************

    United States General Accounting Office GAO               Report
    to the Honorable Frank R. Wolf House of Representatives July 1999
    CAMPAIGN FINANCE Contributions From Gambling Interests Have
    Increased GAO/GGD-99-127 GAO    United States General Accounting
    Office Washington, D.C.  20548 General Government Division B-
    282479 July 27, 1999 The Honorable Frank R. Wolf House of
    Representatives Dear Mr. Wolf: As part of our overall response to
    your request for an analysis of the impact of gambling in the
    United States, this report provides information regarding
    contributions by gambling interests to federal candidates and
    national party committees. The information that you requested on
    campaign contributions to candidates from gambling interests in
    selected state elections will be provided at a later date. As
    agreed with your office, our objectives were to determine for the
    1992, 1994, 1996, and 1998 elections the total amount of
    contributions from gambling interests to (1) federal candidates,
    including the total number of federal candidates that accepted
    those contributions, and (2) national political party committees,1
    as well as separate totals for (3) the Republican National
    Committee (RNC) and the National Republican Congressional
    Committee (NRCC) and (4) the Democratic National Committee (DNC)
    and the Democratic Congressional Campaign Committee (DCCC). Under
    the Federal Election Campaign Act (FECA) of 1971, as amended,
    contributions made in connection with a federal election are
    subject to contribution limits and source prohibitions and must be
    reported to FEC. Candidates are required to report the name and
    address of the source, the date and amount of the contribution,
    and if the contributor is an individual, his or her employer and
    occupation. Candidates are not required to report this information
    for individuals if the aggregate contributions from the individual
    to the candidate total less than $200 in a calendar year. FEC
    issues periodic reports on contributions to candidates and
    national party committees, but does not tabulate contribution data
    by industry. To obtain information on campaign contributions from
    gambling interests, we contracted with the Center for Responsive
    Politics (CRP), an independent research organization that
    categorizes, by industry or interest group, contribution data that
    have been identified and reported to FEC. Campaign contributions
    from the FEC database that were categorized by 1 According to
    Federal Election Commission (FEC), a party's national committee,
    House campaign committee, and Senate campaign committee are
    defined as national party committees. Page 1
    GAO/GGD-99-127 Campaign Finance B-282479 CRP as contributions from
    gambling interests included contributions from (1) individuals who
    listed an employer or occupation connected with the gambling
    industry, (2) political action committees (PACs) with a sponsor
    associated with the gambling industry, and (3) corporations that
    derive their primary source of revenue from the gambling
    industry.2 CRP's findings are reported in terms of "hard money"
    and "soft money." "Hard money" refers to contributions made for
    the purpose of influencing a federal election; these contributions
    are subject to the contribution limitations and prohibitions of
    FECA. "Soft money" refers to contributions raised outside of
    FECA's limitations and prohibitions. Soft money contributions must
    be maintained separately from hard money contributions and may be
    used only for state and local campaign activity or other party
    committee activities that do not influence federal elections.3
    Data we obtained on contributions from the gambling industry to
    Results in Brief    candidates or parties are likely to be
    conservative, primarily because (1) specific sources of
    contributions from individuals that total less than $200 in a year
    are not identified, (2) contributions from some corporations and
    organizations that may be associated with the gambling industry
    may not be included in CRP'S analysis if the primary source of
    their revenue is related to another industry, (3) the industry or
    interest associated with some contributions could not be
    identified, and (4) contributions from the gambling industry to
    state and local party committees are not included. According to
    CRP's analysis, total contributions from gambling interests to
    federal candidates and national party committees rose from $1.1
    million in 1992, a presidential election year, to $5.7 million in
    1998, a midterm election year, an increase of about 400 percent.4
    During this same period, overall election campaign receipts in
    hard money to congressional candidates and in soft money to
    national party committees increased from $617 million to $851
    million, or about 40 percent, according to FEC data. In a CRP
    analysis of 1998 election contributions by 92 industry and
    interest 2 According to FEC, unless a contribution is made by a
    tribe's PAC, only contributions from individuals of an Indian
    tribe are entered into the FEC database.  Contributions to
    national party committees from tribal entities that fall outside
    of the limitations and prohibitions of FECA are disclosed to FEC
    by the national party committees and entered into the FEC
    database. 3 Because certain activities may have the combined
    purpose of benefiting both federal and nonfederal elections (e.g.,
    get-out-the-vote drives), FEC regulations require committees to
    allocate the costs of such activities between hard (federal) and
    soft (nonfederal) accounts. 4 Reported in current dollars.
    Adjusted for inflation (constant dollars), overall contributions
    rose by about 340 percent during that period.  Contributions in
    both current and constant dollars are reported in tables 2, 4, 5,
    6, and 7. Page 2
    GAO/GGD-99-127 Campaign Finance B-282479 groups, the contributions
    ranged from $56,000 to $59 million, and the gambling industry was
    the 37th highest contributor. According to CRP's analysis of
    campaign contributions, hard money contributions from PACs and
    individuals to federal candidates from gambling interests rose
    from $735,000 in the 1992 election to $1.9 million in the 1998
    election, an increase of about 160 percent. Contributions from
    PACs to federal candidates increased by about 320 percent, while
    contributions from individuals increased by about 80 percent from
    1992 to 1998. During the same period, the total number of federal
    candidates receiving contributions from PACs and individuals
    representing gambling interests rose from 146 to 269. Soft money
    contributions from gambling interests to national political party
    committees increased about 840 percent in the same period, from
    $406,000 in the 1992 election to about $3.8 million in the 1998
    election, according to CRP's analysis. Combined contributions to
    the RNC and NRCC from gambling interests totaled $177,000 in the
    1992 election and about $1.4 million in the 1998 election.
    Combined DNC and DCCC contributions from gambling interests
    totaled $290,000 in the 1992 election and $850,000 in the 1998
    election. Based on CRP's analysis, soft money accounted for a
    major portion of the total contributions from gambling interests
    to both parties' national and congressional campaign committees.
    FECA, as amended, imposes limitations on the amounts and sources
    of Background    contributions that may be made to influence
    federal elections and requires public disclosure of fund-raising
    and expenditures in connection with federal elections. FECA places
    limits on contributions by individuals or groups to candidates,
    party committees, and PACs in connection with a federal election.5
    These hard money contributions are anything of value given to
    influence a federal election and include checks, cash, loans,
    donated items or services, and purchases of fund-raising items or
    tickets. Table 1 shows a summary of FECA contribution limits. 5
    According to FEC, PAC is a popular term for a political committee
    that is neither a party committee nor an authorized committee of a
    candidate. A party committee is a political committee that
    represents a political party and is part of the official party
    structure at the national, state or local level. Page 3
    GAO/GGD-99-127 Campaign Finance B-282479 Table 1: Summary of FECA
    Contribution
    FECA maximum allowable contribution to Limits
    Any other political Candidate or
    committee candidate National party
    (including Type of                              committee per
    committee per                                            PACs) per
    Total per contributor
    election calendar yeara                            calendar yearb
    calendar year Individual
    $1,000                     $20,000
    $5,000                  $25,000 Multicandidate
    5,000                      15,000
    5,000                   No limit committeec Other political
    1,000                      20,000
    5,000                   No limit committee (including PACs) aThis
    limit applies separately to each party's national committee, House
    campaign committee, and Senate campaign committee. bException: If
    a contributor gives to a committee knowing that a substantial
    portion of the contribution will be used to support a particular
    candidate, then the contribution counts against the contributor's
    limit for that candidate. See 11 CFR 110.1 (h). cA multicandidate
    committee is a political committee with more than 50 contributors
    that has been registered for at least 6 months and, with the
    exception of state party committees, has made contributions to 5
    or more candidates for federal office. See 11 CFR 100.5(e)(3).
    Source: FEC. The limits on contributions to a candidate committee
    apply to each election in which the candidate participates.
    Primaries, runoffs, and general elections are considered separate
    elections, with separate contribution limits for each. FECA also
    prohibits contributions from specific sources, such as
    corporations and labor unions, if such contributions are made to
    influence a federal election. To obtain the information required
    to meet our objectives, we contracted Scope and
    with CRP of Washington, D.C., to conduct an analysis of campaign
    Methodology                              contributions from
    gambling interests for the 1992, 1994, 1996, and 1998 elections.
    CRP is a research organization that uses the data reported to FEC
    to identify contributions by industry or interest group.6 Campaign
    contributions identified by CRP as contributions from gambling
    interests included contributions from individuals who reported an
    employer or occupation in the gambling industry, PACs with a
    sponsor connected with the gambling industry, and contributions
    from corporations that derive their primary source of revenue from
    the gambling industry. In referring to gambling interests, CRP
    included 6 The FEC database does not categorize contributions by
    industry. Information disclosed to FEC can help to identify the
    industry that might be associated with the contribution. Page 4
    GAO/GGD-99-127 Campaign Finance B-282479 businesses that
    participate in casinos, pari-mutuel betting, lotteries, and their
    respective suppliers. Our information on campaign contributions
    from gambling interests for the 1992, 1994, 1996, and 1998
    elections came from CRP's analysis of FEC data available as of
    March 1, 1999. Contributions reported by election year cover a 2-
    year period.  For example, the 1998 election year contributions
    include data from January 1, 1997, to December 31, 1998. FEC
    requires candidates to disclose total contributions but does not
    require itemization of contributions of under $200. FEC does not
    enter contributions of less than $200 into its database.  Because
    the CRP analysis is based on information in FEC's database, it did
    not include gambling interest contributions from individuals
    associated with the gambling industry that did not reach the $200
    threshold. According to an FEC analysis of total receipts and
    itemized receipts for the 1998 congressional elections,
    contributions from individuals of less than $200 represented about
    17 percent of total campaign receipts. In addition, CRP was not
    able to categorize every contribution of over $200 from
    individuals. In some cases, the occupation and employer
    information for the contributor was missing or incomplete. In
    other cases, the occupation or employer was listed but was
    insufficient to identify the industry or economic interest of a
    contributor.  CRP said that, historically, it has been able to
    identify approximately 65-70 percent of individual contributions
    of over $200 and 99 percent of PAC contributions. Because CRP
    categorizes contributions based on the primary source of revenue
    of the contributor, contributions from some corporations and
    organizations associated with the gambling industry may not be
    included in CRP's analysis if the organization's primary source of
    revenue is related to another industry. In summary, our analysis
    is limited to the extent that individual contributions of less
    than $200 are not counted, some contributions whose source could
    not be identified may be from gambling interests, and
    contributions from corporations or organizations associated with
    gambling interests may not be counted if their primary source of
    revenue comes from another industry. We selected CRP because it is
    an independent, nonprofit research organization that has conducted
    analyses of campaign contributions by industry in the past and has
    analyzed and reported on campaign Page 5
    GAO/GGD-99-127 Campaign Finance B-282479 contributions from the
    gambling industry for the 1992, 1994, 1996, and 1998 elections.
    Because of possible amendments to disclosure reports submitted
    after March 1999 and ongoing updates of the campaign contributions
    database by FEC staff, data used by CRP in its analysis may not
    have included all single campaign contributions of $200 or more
    for the 1998 election year. To obtain information about FECA and
    the FEC disclosure reporting system, we reviewed federal laws and
    regulations and interviewed officials at FEC. To obtain
    information about CRP and CRP's database, we reviewed CRP
    documents and interviewed officials at CRP. Although we did not do
    a comprehensive verification of the data in CRP's database, we did
    a limited test of the data to determine whether they accurately
    reflected the data contained in disclosure reports filed with FEC
    for the 1996 and 1998 elections. All the data we traced from CRP's
    database to the disclosure report images in the FEC database were
    accurate. Appendix I provides further details about the FEC
    disclosure database and the methodology used by CRP to provide an
    analysis of campaign contributions by industry. To convert current
    dollar amounts for the 1992, 1994, and 1996 election years to 1998
    constant dollar amounts, we divided each year's current dollar
    amount by the Gross Domestic Product (GDP) Price Index from the
    Department of Commerce's Bureau of Economic Analysis for those
    years, using 1998 as a base. We conducted our audit work from
    February 1999 to June 1999 in Washington, D.C., in accordance with
    generally accepted government auditing standards. We requested
    comments on a draft of this report from FEC's Chairman. On June
    29, 1999, the FEC Chairman provided written technical comments,
    which we incorporated in the report where appropriate. According
    to the CRP analysis of FEC data as of March 1, 1999, hard
    Contributions From       money contributions by gambling interests
    from individuals and PACs to Gambling Interests to    federal
    candidates increased by about 160 percent in current dollars, from
    $735,000 in the 1992 election to $1.9 million in the 1998
    election. In Federal Candidates       constant dollars, hard money
    contributions by gambling interests rose by Increased From 1992
    about 130 percent from 1992 to 1998. (See table 2.) to 1998 Page 6
    GAO/GGD-99-127 Campaign Finance B-282479 Table 2: Individual and
    PAC Hard Money Contributions from Gambling Interests to Federal
    Candidates for 1992, 1994, 1996, and 1998 Elections Dollars in
    thousands
    Election year Type of                     1992
    1994                              1996
    1998 contribution            Current Constant          Current
    Constant            Current Constant                Current
    Constant Individual                $508      $573
    $849         $910             $1,404        $1,445
    $940          $940 PAC                        227       256
    350          375                  975       1,004
    961           961 Total                     $735      $829
    $1,199         $1,285             $2,379       $2,449
    $1,901        $1,901 Note: Constant dollars are based on the GDP
    Price Index, Department of Commerce. Contribution amounts are
    based on FEC data as of March 1, 1999. Individual contributions
    include one-time contributions of $200 or more. Source: April 1999
    analysis by CRP. Hard money contributions from individuals to
    federal candidates increased in current dollars from $508,000 in
    1992 to $940,000 in 1998, or about 80 percent. Hard money
    contributions from PACs increased by about 320 percent in current
    dollars during the same period, from $227,000 to $961,000.
    According to CRP's analysis, overall individual and PAC hard money
    contributions to federal candidates from gambling interests
    increased from the 1992 presidential election to the 1996
    presidential election, and from the 1994 midterm election to the
    1998 midterm election. As shown in table 3, the total number of
    federal candidates reporting hard Number of Federal
    money contributions from gambling and casino interests rose from
    146 in Candidates Receiving                        the 1992
    election to 269 in the 1998 election, an increase of about 80
    percent. Contributions From Gambling Interests Increased From 1992
    to 1998 Table 3: Total Number of Federal
    Election year Candidates Receiving Individual and
    1992               1994              1996           1998 PAC Hard
    Money Contributions From           Total number of federal
    146a                239a              378a            269 Gambling
    Interests in the 1992, 1994,       candidates receiving 1996, and
    1998 Elections                    contributions from gambling
    interests Note: Candidate totals are based on FEC data as of March
    1, 1999. aTotal number of federal candidates includes six
    presidential candidates in 1992, one presidential candidate
    receiving contributions in 1994, and eight presidential candidates
    in 1996. Source: April 1999 analysis by CRP. Page 7
    GAO/GGD-99-127 Campaign Finance B-282479 As shown in table 4, soft
    money contributions in current dollars from Contributions From
    gambling interests to national party committees, as identified by
    the CRP Gambling Interests to                        analysis,
    rose from $406,000 in the 1992 election to $3.8 million in the
    1998 elections, an increase of about 840 percent. Soft money
    contributions in National Party
    constant dollars rose by about 740 percent during this period.
    Committees Increased From 1992 to 1998 Table 4: Soft Money
    Contributions From Gambling Interests to National Party Committees
    in the 1992, 1994, 1996, and 1998 Elections Dollars in thousands
    Election Year 1992                           1994
    1996                             1998 Current Constant
    Current          Constant        Current        Constant
    Current       Constant Total soft                $406       $458
    $1,395         $1,496             $3,837      $3,948
    $3,830        $3,830 money contributions from gambling interests
    Note: Constant dollars are based on the GDP Price Index,
    Department of Commerce. Contribution totals are based on FEC data
    as of March 1, 1999. Amounts shown include each party's national
    committee, House campaign committee, and Senate campaign
    committee. Totals do not include transfers between party
    committees or contributions from gambling interests to state party
    committees. Source: April 1999 analysis by CRP. Soft money
    contributions from gambling interests totaled $406,000 in current
    dollars in the 1992 presidential election year and about $3.8
    million in the 1996 presidential election year, an increase of
    about 840 percent. Soft money contributions from gambling
    interests rose in current dollars from $1.4 million in the 1994
    midterm election cycle to about $3.8 million in the 1998 midterm
    election cycle, or about 180 percent. As shown in table 5,
    contributions to the RNC and NRCC from gambling Total RNC/NRCC
    interests totaled $177,000 in current dollars in the 1992 election
    and about Contributions From                           $1.4
    million in the 1998 election, an increase of 680 percent.
    Contributions rose in constant dollars by about 590 percent during
    this period. Gambling Interests Increased From 1992 to 1998 Page 8
    GAO/GGD-99-127 Campaign Finance B-282479 Table 5: Hard and Soft
    Money Contributions From Gambling Interests to the RNC and NRCC in
    the 1992, 1994, 1996, and 1998 Elections Dollars in thousands
    Election year 1992                          1994
    1996                              1998 Current Constant
    Current         Constant           Current Constant
    Current Constant RNC Soft moneya               $151       $170
    $785         $841              $1,085       $1,117
    $1,178         $1,178 Hard money                   9         11
    2              2                36            37
    6               6 Subtotal                  $160       $181
    $787         $843              $1,121       $1,154
    $1,184         $1,184 NRCC Soft moneya                 $0
    $0                 $10           $11              $267
    $274                $184          $184 Hard money
    17         19                   4             5                 14
    14                   8               8 Subtotal
    $17        $19                 $14           $16              $281
    $288                $192          $192 Total
    $177       $200                $801         $859
    $1,402       $1,442              $1,376        $1,376 Note:
    Constant dollars are based on the GDP Price Index, Department of
    Commerce. Contribution amounts are based on FEC data as of March
    1, 1999. Individual contributions include one-time contributions
    of $200 or more. Amounts reported for soft money do not include
    transfers among party committees or contributions from gambling
    interests to state party committees. aThese soft money amounts are
    also included in the national party committee totals in table 4.
    Source: April 1999 analysis by CRP. According to CRP's analysis,
    soft money accounted for a major portion of the total
    contributions in current dollars from gambling interests to the
    RNC and RNCC. Total contributions in current dollars to the RNC
    and RNCC from gambling and casino interests for the 1998 election
    were lower than the 1996 contribution totals but higher than the
    $801,000 gambling contribution total for the previous midterm
    election in 1994. As shown in table 6, overall contributions to
    the DNC and DCCC from Total DNC/DCCC
    gambling and casino interests totaled $290,000 in current dollars
    in the Contributions From                           1992 election
    and $850,000 in the 1998 election, an increase of about 190
    percent. Contributions rose in constant dollars by about 160
    percent Gambling Interests                           during the
    same period. Increased From 1992 to 1998 Page 9
    GAO/GGD-99-127 Campaign Finance B-282479 Table 6: Hard and Soft
    Money Contributions From Gambling Interests to the DNC and DCCC in
    the 1992, 1994, 1996, and 1998 Elections Dollars in thousands
    Election year 1992                          1994
    1996                                  1998 Current      Constant
    Current       Constant             Current      Constant
    Current           Constant DNC Soft moneya             $204
    $230              $570         $611              $1,438
    $1,479            $398                $398 Hard money
    21         23                  1             1               143
    147                   15              15 Subtotal
    $225       $253              $571         $612              $1,581
    $1,626            $413                $413 DCCC Soft moneya
    $48        $54                $30          $32              $247
    $254             $417                $417 Hard money
    17         19                 16           17                 49
    51                   20              20 Subtotal
    $65        $73                $46          $49              $296
    $305             $437                $437 Total
    $290       $326              $617         $661              $1,877
    $1,931            $850                $850 Note: Constant dollars
    are based on the GDP Price Index, Department of Commerce.
    Contribution amounts are based on FEC data as of March 1, 1999.
    Individual contributions include one-time contributions of $200 or
    more. Amounts reported for soft money do not include transfers
    among party committees or contributions from gambling interests to
    state party committees. aThese soft money amounts are also
    included in the national party committee totals in table 4.
    Source: April 1999 analysis by CRP. According to CRP's analysis,
    soft money accounted for a major portion of the total
    contributions in current dollars from gambling interests to the
    DNC and DCCC. Total contributions in current dollars to the DNC
    and DCCC from gambling and casino interests for the 1998 election
    were lower than the 1996 contribution totals but higher than the
    $617,000 gambling contribution total for the previous midterm
    election in 1994. As shown in table 7, according to CRP's
    analysis, total combined Overall Contributions
    contributions from gambling interests to federal candidates and
    national From Gambling                               party
    committees increased from $1.1 million in current dollars in the
    1992 election to $5.7 million in the 1998 election, an increase of
    about 400 Interests Increased                         percent. In
    constant dollars, total contributions from gambling interests From
    1992 to 1998                           rose about 340 percent
    during this period. During this same period, overall election
    campaign receipts in hard money to congressional candidates and
    soft money to national party committees increased from $617
    million to $851 million, or about 40 percent, according to FEC. In
    a CRP analysis of 1998 election contributions by 92 industry and
    interest groups, the contributions ranged from $56,000 to $59
    million, and the gambling industry group was the 37th highest
    contributor. Total contributions in current dollars from gambling
    interests for the 1998 midterm election were lower than the 1996
    contribution totals but higher than total gambling contributions
    for the previous midterm election in 1994. Page 10
    GAO/GGD-99-127 Campaign Finance B-282479 Table 7:  Overall
    Contributions From Gambling Interests to Federal Candidates and
    National Party Committees for the 1992, 1994, 1996, and 1998
    Elections Dollars in thousands
    Election year 1992                          1994
    1996                              1998 Current Constant
    Current        Constant           Current      Constant
    Current          Constant Hard money to             $735
    $829           $1,199           $1,285           $2,379
    $2,449             $1,901          $1,901 federal candidates (from
    table 2) Soft money to              406         458
    1,395           1,496              3,837         3,948
    3,830           3,830 national party committees (from table 4)
    Total                   $1,141       $1,287          $2,594
    $2,781           $6,216          $6,397             $5,731
    $5,731 Note: Constant dollars are based on the GDP Price Index,
    Department of Commerce. Contribution amounts are based on FEC data
    as of March 1, 1999. Individual contributions include one-time
    contributions of $200 or more. Amounts reported for soft money
    include each party's national committee, House campaign committee,
    and Senate campaign committee and do not include transfers among
    party committees or contributions from gambling interests to state
    party committees. Source: April 1999 analysis by CRP. We are
    sending copies of this report to Senator Fred Thompson, Chairman,
    and Senator Joseph I. Lieberman, Ranking Minority Member, Senate
    Committee on Governmental Affairs; and Representative Dan Burton,
    Chairman, and Representative Henry A Waxman, Ranking Minority
    Member, House Committee on Government Reform. We are also sending
    a copy of this report to Scott E. Thomas, Chairman of FEC. Copies
    will be made available to others upon request. Major contributors
    to this report are acknowledged in appendix II. Please contact me
    or John Baldwin on (202) 512-8387 if you have any questions about
    this report. Sincerely yours, Bernard L. Ungar Director,
    Government Business Operations Issues Page 11
    GAO/GGD-99-127 Campaign Finance Contents 1 Letter 14 Appendix I
    Campaign Contribution Data 17 Appendix II GAO Contacts and Staff
    Acknowledgments Table 1: Summary of FECA Contribution Limits
    4 Tables               Table 2: Individual and PAC Hard Money
    Contributions                      7 from Gambling Interests to
    Federal Candidates for 1992, 1994, 1996, and 1998 Elections Table
    3: Total Number of Federal Candidates Receiving
    7 Individual and PAC Hard Money Contributions From Gambling
    Interests in the 1992, 1994, 1996, and 1998 Elections Table 4:
    Soft Money Contributions From Gambling                           8
    Interests to National Party Committees in the 1992, 1994, 1996,
    and 1998 Elections Table 5: Hard and Soft Money Contributions From
    9 Gambling Interests to the RNC and NRCC in the 1992, 1994, 1996,
    and 1998 Elections Table 6: Hard and Soft Money Contributions From
    10 Gambling Interests to the DNC and DCCC in the 1992, 1994, 1996,
    and 1998 Elections Table 7:  Overall Contributions From Gambling
    Interests                  11 to Federal Candidates and National
    Party Committees for the 1992, 1994, 1996, and 1998 Elections Page
    12                                      GAO/GGD-99-127 Campaign
    Finance Contents Abbreviations CRP         Center for Responsive
    Politics DCCC        Democratic Congressional Campaign Committee
    DNC         Democratic National Committee FEC         Federal
    Election Commission FECA        Federal Election Campaign Act GDP
    gross domestic product NRCC        National Republican
    Congressional Committee PAC         political action committee RNC
    Republican National Committee Page 13
    GAO/GGD-99-127 Campaign Finance Appendix I Campaign Contribution
    Data The information in FEC's disclosure database is derived from
    campaign finance disclosure reports filed under FECA. House
    candidates file disclosure reports with FEC. Senate candidates
    file disclosure reports with the Secretary of the Senate and
    copies are later forwarded to FEC. FECA requires candidate
    committees to file periodic disclosure reports of campaign
    contributions and expenditures. During nonelection years, odd-
    numbered years in which there are no regularly scheduled federal
    elections, two semiannual reports are required. During an election
    year, quarterly reports must be filed by April 15, July 15, and
    October 15, and a year-end report, which includes activity from
    the fourth quarter, must be filed by January 31 of the following
    year.1 For the 1998 election year, year- end disclosure reports
    were due on January 31, 1999. Data from the nonelection year and
    the election year disclosure reports can be aggregated to report
    results for the 2-year election cycle. After receiving the
    campaign finance reports identifying contributions, FEC scans
    House, PAC, and party committee reports into a computerized
    imaging system. FEC staff initially enter totals from the summary
    page of the disclosure report and later enter itemized
    contributions of $200 or more from the disclosure reports into
    FEC's database. Contributions from individuals that do not meet
    the $200 threshold are not itemized in the FEC database. According
    to FEC, to improve data entry accuracy, disclosure report data
    that are entered into FEC's database are keyed into the database
    twice and the numbers are matched to reveal any data entry errors.
    According to FEC, once the numbers from the disclosure reports are
    entered, FEC report analysts review the reports for accuracy and
    compliance with the law. If a report contains errors or suggests
    violations of the law, the analyst sends the reporting committee a
    request for additional information. Committees can then file an
    amended report to correct or add information. The review of
    disclosure reports by report analysts also serves as an additional
    check of the accuracy of FEC data entry procedures, according to
    FEC officials. According to FEC, an update to the disclosure
    database is released at the beginning of each month. The new data
    in the FEC database can then be accessed by organizations or
    individuals seeking information on campaign contributions. 1
    Schedule is for congressional candidates. Presidential candidates
    file reports according to a different schedule. Page 14
    GAO/GGD-99-127 Campaign Finance Appendix I Campaign Contribution
    Data According to CRP, data from FEC's disclosure database are
    downloaded into a CRP database a few days after the monthly FEC
    update. The date of the last download of FEC data used for CRP's
    analysis available for use in this report was March 1, 1999. CRP
    assigns contribution source codes by industry to contributions
    from FEC's disclosure database, based on the contributor's
    occupation, specific industry, or interest group. CRP attempts to
    assign a code to every contribution of $200 or more; however, in
    some cases, the employer or occupation field is left blank or the
    information gives no indication of the contributor's industry.
    Some examples of contributors that are hard to identify by
    industry are (1) homemakers, students, and others who can not be
    connected with a family income earner and (2) individuals who list
    vague occupations on reports filed with FEC, such as "consultant"
    or "self- employed," that do not reveal the industry of the
    contributor. CRP uses a variety of procedures to assign as many
    contributions to an industry or interest group as possible. For
    example, contributions from non-income-earning spouses are
    classified according to the economic interest of the income earner
    within the family if CRP can identify the industry of the income
    earner. In cases where the family has two income- earning spouses,
    contributions are classified according to their particular
    industry or economic interest by CRP. CRP also attempts to
    identify multiple contributions from the same contributor. For
    example, an analysis of previous contributions or addresses can
    help to determine whether separate contributions from a "John
    Smith" and a "J. Smith" are actually contributions from the same
    person. Contributions from some corporations and organizations
    that may be associated with the gambling industry may not be
    included in CRP's analysis.  CRP assigns contributions from
    corporations to various industries based on the corporation's
    primary source of revenue. According to CRP, staff will check
    corporate annual reports, Standard & Poor's, and other sources to
    determine the primary industry of a corporation. The Hilton Hotels
    Corporation serves as an example of how CRP assigns a contribution
    industry code when a corporation making the contribution has
    revenues from two or more industries. According to CRP, a 1997
    Hilton Hotels Corporation Annual Report shows that Hilton received
    52 percent of its revenues from its hotel operations and 48
    percent from its casino operations.2 Thus, contributions from
    Hilton Hotels 2 Hilton's casino operations were spun off to a new
    company called Park Place Entertainment in late 1998. Page 15
    GAO/GGD-99-127 Campaign Finance Appendix I Campaign Contribution
    Data Corporation are coded by CRP as a contribution from the hotel
    industry because a majority of the firm's revenue derives from its
    hotel operations. According to CRP, contributions from Indian
    tribes are assigned to the gambling and casino category if the
    tribe has a casino or other gambling facility. CRP staff use the
    Tribal-State Compact list produced by the Bureau of Indian Affairs
    and other information sources to determine whether an Indian tribe
    has gambling facilities. Various organizations, including CRP,
    report information on campaign contributions from gambling
    interests that may differ from one another and from the
    information in this report.  There are a number of reasons for
    this.  First, different methods may be used for categorizing
    contributions from corporations and organizations involved in more
    than one industry. Second, total contributions from gambling
    interests in table 7 do not include hard money contributions to
    national party committees. According to CRP, hard money
    contributions from gambling interests to national party
    committees, including the Senate campaign committee, totaled about
    $99,000 for the 1998 election.3 Third, our total for contributions
    from the gambling industry does not include soft money
    contributions that were reported by joint fund-raising dinner
    committees and later distributed to national party committees.
    According to our analysis of CRP data, soft money contributions
    from gambling interests to joint fundraising committees in the
    1998 election totaled about $139,000. Fourth, our total
    contributions amount does not include hard money contributions
    from gambling interests to state, local, and other party
    committees that did not fall under the FEC's definition of
    national party committees. According to our analysis of CRP data,
    hard money contributions from gambling interests to party
    committees that we did not identify as national party committees
    in the 1998 election totaled about $163,000.4 Finally, soft money
    contributions from labor unions were not included in the CRP data
    we are reporting.5 Under FECA, labor organizations are prohibited
    from making hard money contributions to influence federal
    elections. 3 Analysis of data on PAC hard money contributions from
    gambling interests to party committees was not completed in time
    to be included in this report. 4 State and local party committees
    that did not register with and report contributions to the FEC are
    not included in this amount. 5 Because contribution patterns
    differ, CRP does not assign contributions from labor unions to an
    industry category.  Union contributions are assigned to one of
    five broad categories: building trade unions, industrial unions,
    transportation unions, public sector unions, and miscellaneous
    unions. Page 16
    GAO/GGD-99-127 Campaign Finance Appendix II GAO Contacts and Staff
    Acknowledgments Bernard L. Ungar, (202) 512-8387 GAO Contacts
    John S. Baldwin, Sr., (202) 512-8387 In addition to those named
    above, Brad Dubbs, Lucy M. Hall, Acknowledgments    Abraham L.
    Logan, Michelle Sager, and Alan N. Belkin made key contributions
    to this report. Page 17
    GAO/GGD-99-127 Campaign Finance Page 18    GAO/GGD-99-127 Campaign
    Finance Page 19    GAO/GGD-99-127 Campaign Finance Page 20
    GAO/GGD-99-127 Campaign Finance Ordering Information The first
    copy of each GAO report and testimony is free. Additional copies
    are $2 each. Orders should be sent to the following address,
    accompanied by a check or money order made out to the
    Superintendent of Documents, when necessary. VISA and MasterCard
    credit cards are accepted, also. Orders for 100 or more copies to
    be mailed to a single address are discounted 25 percent. Order by
    mail: U.S. General Accounting Office P.O. Box 37050 Washington, DC
    20013 or visit: Room 1100 700 4th St. NW (corner of 4th and G Sts.
    NW) U.S. General Accounting Office Washington, DC Orders may also
    be placed by calling (202) 512-6000 or by using fax number (202)
    512-6061, or TDD (202) 512-2537. Each day, GAO issues a list of
    newly available reports and testimony. To receive facsimile copies
    of the daily list or any list from the past 30 days, please call
    (202) 512-6000 using a touch-tone phone. A recorded menu will
    provide information on how to obtain these lists. For information
    on how to access GAO reports on the INTERNET, send e-mail message
    with "info" in the body to: [email protected] or visit GAO's World
    Wide Web Home Page at: http://www.gao.gov United States General
    Accounting Office           Bulk Rate Washington, D.C. 20548-0001
    Postage & Fees Paid GAO Permit No. G100 Official Business Penalty
    for Private Use $300 Address Correction Requested (240341)

*** End of document. ***