Governors weigh in against Adelson’s gaming ban

In a town where partisan divide is as large as the Grand Canyon, it took a Las Vegas billionaire to bring together members of both political parties – just not in the way he hoped.

Since New Jersey and a handful of other states legalized online gaming and the internet sale of lottery tickets, Sheldon Adelson, the owner of the Sands Casino, is conducting a campaign to see those laws overturned by the federal government.

Turning to his congressional allies, Adelson's lobbyist drafted a bill for Sen. Lindsey Graham (R-S.C.), now referred to as "RAWA" (Restore America's Wire Act).  The bill would overturn the laws of nearly a dozen states and, coincidentally, protect Mr. Adelson's casino properties.

Might can't buy you love, but it seems as though it can buy you legislation.  Thankfully, the Adelson bill has been stalled by a coalition of conservative and libertarian organizations.  Groups like the Americans for Tax Reform, the Competitive Enterprise Institute, and the Institute for Liberty have all spoken out against the legislation.

While the RAWA bill appears stalled, Adelson's lobbyists also appear to be shifting the playing field.  During his congressional confirmation hearings, Mr. Graham conveniently asked about Mr. Sessions's position on internet gambling.  Mr. Sessions suggested he would potentially "revisit it or make a decision about it based on careful study."

To ensure that states don't have the rug pulled out from under them, the National Governors Association has jumped into the fight.  Virginia's Democrat governor, Terry McAuliffe, and Nevada's Republican governor, Brian Sandoval, recently sent a letter to Attorney General Jeff Sessions opposing any effort by the Department of Justice to change the rules of the game.

The bipartisan letter states that "[w]hile individual governors have different views about offering gaming – in a variety of forms – within their own states, we agree that decisions at the federal level that affect state regulatory authority should not be made unilaterally without state input."

The letter also focuses the robust regulations and consumer protections that states have enacted with their legal online gambling laws: "[a]s you review this issue, we encourage you to take note of the current regulatory mechanisms put in place by the states to ensure that consumers and children are protected, and that licensees comply with strict standards of conduct.  States are best equipped to regulate and enforce online gaming.  A ban drives this activity offshore to unregulated jurisdictions, out of the reach of state and federal law enforcement and with risk to consumers."

For both Republicans and Democrats, RAWA represents almost everything wrong with the D.C. swamp.  It is a bill written by a lobbyist at the behest of a billionaire contributor that walks on the Tenth Amendment of the Constitution.  The signature of Mr. McAuliffe opens up a new front in the battle against this blatant example of crony capitalism. 

Mr. Adelson has brought members of both parties together – in opposition to his power-grab.  Hopefully Mr. Sessions is listening to the pleas. 

Brian Garst is Director of Policy and Communications for the Center for Freedom and Prosperity.

 

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