March/April 2015 // Public Gaming International //
49
constitutional under United States Supreme Court precedent ap-
plicable to broadcast advertising of lawful gaming.)
In summary, while the RAWA may be intended to prohibit wager-
ing via laptop computers and mobile devices,
12
its actual effects would
be much more far-reaching. If enacted, the RAWA would make un-
lawful several of state lotteries’ customary and traditional activities.
As has been widely reported, the RAWA is backed by Sheldon
Adelson,
13
the billionaire owner of Las Vegas Sands, which operates
casinos in Nevada, Pennsylvania and Macau. Mr. Adelson has vowed
“to spend whatever it takes”
14
to stop online gaming in the United
States. According to one industry source: “Adelson met [in January
2015] with House Speaker John Boehner of Ohio and Republican
members of the House Judiciary Committee who told him the ban
could be passed by the committee and sent to the House floor as
early as the Easter recess.”
15
It is highly ironic that the RAWA is being championed mainly
by conservatives, who generally seek to shrink the size and influ-
ence of the federal government and champion the right of states to
govern themselves. On this basis, however, numerous conservative
organizations and individuals have come out against the RAWA.
These include the American Conservative Union, the Campaign for
Liberty, the Taxpayers Protection Alliance and the Competitive En-
terprise Institute, as well as Grover Norquist, President of Americans
for Tax Reform
16
and former Presidential candidate Ron Paul (who
has called Adelson’s backing of the bill political “cronyism.”)
17
The
primary reason for their opposition is essentially the same as in 2014,
namely, that it would usurp the historic prerogative of states to de-
cide for themselves what, if any, gambling shall be permitted within
their borders.
The National Council of Legislators from Gaming States
(“NCLGS”) is another strong and important
18
supporter of states’
rights. On January 10, 2015, less than a month before the RAWA
was introduced, this non-partisan organization of state lawmakers
issued its Policy Framework for the Regulation of Internet Gam-
ing,
19
a set of standards to help safeguard both states that wish to
participate in internet gaming as well as those states that do not.
In that document, the NCLGS presented its core belief: “NCLGS
does not support or oppose gaming, but supports effective regula-
tion and believes that decisions related to gaming should be made
by citizens of the individual states and their elected officials.”
20
In
2014, the NCLGS was strongly opposed to that year’s version of the
RAWA (which is identical in language), stating that the bill “would
effectively preempt the historical and constitutional right of states
to regulate gambling within their borders.”
21
As to the likelihood of the RAWA becoming law, one commenta-
tor has stated that: “Even if you reject [the conservative opposition,
the poor-optics associated with Sheldon Adelson’s support of the
RAWA and certain other factors], general Congressional inertia and
the lack of broad political interest in the issue of online gambling
basically guaranty that this bill never makes it to a vote, let alon[e]
into law.”
22
However, in our view, the risks to state lotteries asso-
ciated with possible passage of the RAWA are so great that state
lotteries would be wise to voice a strong and unified opposition to
the bill, whether or not they currently have plans to implement lot-
tery games online. As stated by many state lotteries already, it has
long been—and it should remain—the prerogative of the individual
states to determine the types of gambling allowed within their re-
spective borders.
■
Mark Hichar is a Partner with the Hinckley Allen law firm and is the
Chair of its Gaming Law Practice Group. Ashley Taylor is a corporate as-
sociate and member of the Gaming Law Practice Group at Hinckley Allen.
Mark and Ashley represent operators of casinos, internet gaming websites,
and providers of gaming systems, software and services, among other clients.
12Rep. Chaffetz was quoted in reference to the RAWA as follows: “Putting an app
on every phone that allows people to gamble wherever they are is not a good
idea.” “Congress Revives Sheldon Adelson-backed Plot to Kill Online Gam-
bling,” by Dustin Volz, NationalJournal.com, February 4, 2015, at
.
nationaljournal.com/tech/congress-revives-sheldon-adelson-backed-plot-to-kill-
online-gambling-20150204 (last accessed March 9, 2015).
13 “House introduces online gambling bill backed by Sheldon Adelson,” by Alex
Rogers, Fortune.com, February 4, 2015, at
/
online-gambling-bill-adelson/ (last accessed March 9, 2015).
14 “Sheldon Adelson Says He Is ‘Willing To Spend Whatever It Takes’ To Stop On-
line Gambling,” by Nathan Vardi, Forbes.com, November 22, 2013, at http://
-
ing-to-spend-whatever-it-takes-to-stop-online-gambling/ (last accessed March 9,
2015).
15 “Adelson Resumes Aggressive Push For Internet Gambling Ban,” by Tony Batt,
GamblingCompliance, January 27, 2015, at
.
com/premium-content/news_analysis/adelson-resumes-aggressive-push-inter-
net-gambling-ban (last accessed March 9, 2015).
16 “The Return of RAWA Has Been Met With Fierce Opposition,” by Steve Ruddock,
Bluff.com, February 12, 2015, at
-
has-been-met-with-fierce-opposition-63677/ (last accessed March 9, 2015).
17 “Ron Paul Attacks Sheldon Adelson-for Fighting Online Gambling,” by Dustin
Volz, NationalJournal.com, November 17, 2014, at
-
nal.com/tech/ron-paul-attacks-sheldon-adelson-for-fighting-online-gamb-
ling-20141117 (last accessed March 9, 2015).
18 “When the NCLGS makes a statement on a major gaming issue, it carries the
weight of lawmakers from states where gambling is highly important.” “NCLGS
States Opposition to Federal Online Gambling Ban,” by David Sheldon, Casino.
org, April 16, 2014, at
-
federal-online-gambling-ban#ixzz3SDOVXAGY (last accessed March 9, 2015).
19“Policy Framework for the Regulation of Internet Gaming,” by the National
Council of Legislators from Gaming States, available at
org/PDFs/2015/01142015NCLGSPolicyGamblingNew.pdf (last accessed
March 9, 2015).
20 Id., p. 5.
21 “NCLGS Urges Congress To Support States’ Rights On Internet Gaming,” press
release issued by Representative James W. “Jim” Waldman on April 9, 2014, at
(last accessed March 9, 2015).
22 “The Restoration of America’s Wire Act – Breaking Down The Sheldon Adelson-
Backed Online Gambling Ban,” by Chris Grove, OnlinePokerReport.com, Feb-
ruary 4, 2015, at
introduce-anti-online-gambling-bill/ (last accessed March 9, 2015).
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