The US Congress is being heavily lobbied by one land-based casino chain to restore and rewrite the Federal Wire Act of 1961. The proposed restoration and rewrite of this 1961 law specifically targets all forms of online gambling in the United States.
Regardless of one’s personal feelings concerning online gambling this proposed rewrite is troublesome because it is backed by high profile figures like Sheldon Adelson, billionaire and owner of the Las Vegas Sands Corporation, a popular land-based casino chain. Given Adelson’s involvement and obvious vested interest in shutting down competition from online sites it is difficult to believe that this proposed legislation is really about “protecting children” and not about land-based casinos “protecting turf.”
Loss of Freedom Often Masked By Regulations Purporting to Protect Children
Supporters of Adelson’s campaign have claimed that online gambling can be compared to the “Wild Wild West.” They have been exceedingly vocal about their “concerns” of the dangers of online gambling. Naturally, among their concerns is the possibility that minors gain more access to gambling thanks to the advent of smartphones and tablets. Adelson is already getting support from Utah Republican Jason Chaffetz for his latest attempt to influence American politics.
Senator Chaffetz has the following to say about electonic gambling:
“There are no rules, no prohibitions, no structure, no oversight, nothing.
“That is so offensive and wrong. When you’re a seven year-old kid and there is no physical barrier, and all you need to do is get your iPhone – that becomes a whole new world.”
Adelson, the lobbyist, should be exceedingly pleased with Chaffetz’ support.
But this is now, after he was thoroughly beaten at online gambling by land-based competitors who successfully launched online sites. In fact, when Adelson thought he could make electronic gaming a profitable venture he was entirely FOR online gambling.
According to Sam Brodey in Mother Jones:
“His chief Las Vegas rivals, Caesars Entertainment and MGM Grand, have online gambling operations, while his Las Vegas Sands does not. But not for lack of trying. Sands Corporation, of which Adelson is president and CEO, was actively exploring online gambling from at least 2001 to 2007, when the casino mogul himself declared, “If the market sees a way into expanding in electronic gaming, we’ll be in it.”
Adelson is using vast lobbying influence to jettison online competition
Adelson’s influence extends far beyond North America. He is owner of the Israeli daily newspaper Israel Ya Hom which proved instrumental in driving Benjamin Netanyahu’s successful re-election campaign. Given Adelson has proven he has the power to influence who rules a nation he will most assuredly wield considerable influence (campaign contributions?) to convince officials to restore the 1961 Federal Wire Act.
Adelson’s motivations are highly questionable given that online gambling is only legal in 3 American states – Nevada, Delaware and New Jersey. It begs the question “what is he really after?” Clearly NOT protecting innocent kids with iPhones and tablets. And even if this law gets restored how exactly does it prohibit online gambling overseas or, for that matter, American access to overseas gambling sites?
Online gambling outside the US very likely to prosper from American patronage
Despite Adelson’s latest efforts to crush his competition through use of political influence online gambling in America has always been subject to loopholes. For example, online players have been able to get around state laws by playing online at sites which are licensed overseas. Adelson’s efforts do not prevent online gambling. They simply drive American funds in the direction of other nations.
South Africa, for example, has recently updated its online gambling laws to offer regulated gambling across trusted sites. Some of these South African sites now accept a variety of payment methods that allow foreigners to pay with different currencies and methods that include bank wire and courier check.
In addition a number of European sites are likely to benefit from Adelson’s proposed American online gambling blackout. For example, the Netherlands introduced regulated online gambling this year, and many online sites are licensed in places like Gibraltar and Malta.
But Americans need not go that far overseas should Adelson succeed in buying restoration of the Federal Wire Act of 1961. Americans need only travel over the border to Canada which has been at the forefront of the iGaming industry since it was first established a decade or so ago. With many established online gaming brands registered in Toronto, it may not be too taxing for Americans to take a vacation and enjoy the benefits of regulated online gambling.
So what is Adelson really after?
Original source Shift Frequency April 2015