Is Caesars Behind New Federal Anti-Online Gambling Bill?

While Nevada Senator Dean Heller circulates a new poker-only online gambling bill on Capitol Hill, entitled “Internet Gambling Prohibition and Control Act of 2014,” a dispute has broken out as to whether Caesars Entertainment played a major role in drafting the potential piece of legislation. The controversy also comes a short time after Las Vegas Sands CEO Sheldon Adelson influenced the American Gaming Association (AGA) to backtrack on its support for online gambling, a stance previously championed by MGM Resorts and Caesars Entertainment.

Not a Las Vegas Sands bill

The latest controversy was sparked after Nevada political analyst Jon Ralston commented on his blog post that the new bill was not “a Sands Bill,” a point which was picked up by Las Vegas Sands Corporation VP Andy Abboud, who apparently said “It is not our bill, nor do we support it.”

Jon Ralston even went so far as to suggest it was a “silly” to assume Las Vegas Sands, which is unilaterally against any form of online gambling, would support a bill that would permit online poker. Nevertheless, Caesars Entertainment has thus far denied having anything to do with drafting the new bill.

Details of ‘Internet 6 Gambling Prohibition and Control Act of 2014’

The new bill proceeds from the assumption that unregulated, online gaming results in “the proliferation of gambling activity, increases in gambling addiction and other socially undesirable behavior.” Internet Gambling Prohibition and Control Act of 2014 subsequently states that its aim is “To prohibit Internet gambling in order to protect consumers and the public interest.”

The bill goes on to state that the DoJ’s reinterpretation of the 2006 UIGEA to only apply to a sports wagering has inevitably lead to a proliferation of offshore websites operating with impunity in the USA.

Poker maintained in bill

According to the bill most forms of internet gambling would be illegal, such as sports betting and casino games, although like the UIGEA exceptions are made for horse racing, lotteries, and fantasy sports.

Poker, however, occupies a wholly unique position in the pantheon of available gambling games as the bill describes the card game as one “in which success over the long run is influenced by the skill of the player.”

Nevada leading battle against online gambling

Earlier this year Dean Heller (R-NV) announced he was collaborating with Senate Majority Leader Harry Reid (D-NV) to bring a federal anti-online gambling bill to Washington D.C. Nevertheless, the latest bill has carve outs for internet poker, lotteries, and horse racing, making it unlike other bills so far introduced, such as the Restoration of America’s Wire Act (RAWA) introduced by U.S. Senator Lindsey Graham (R-South Carolina) and Congressman Jason Chaffetz (R-Utah).

Currently, Nevada Senator Dean Heller has said he hasn’t yet been asked to support ‘Internet 6 Gambling Prohibition and Control Act of 2014’ but said be just intends to give it the same contemplation as other bills before moving it in the “appropriate direction.” Still, in the past online gambling issues have featured rather low down on the priority list of federal lawmakers, prompting some analysts to suggest Heller may seek to modify the Graham/Chaffetz proposal instead by allowing online poker. This would likely not sit well with Sheldon Adelson who has labelled internet poker “a toxin which all good people ought to resist” and vowed to spend “whatever it takes” to ban the game Stateside.

Nevada analyst Ralston tracks bill’s origin

Although Nevada political analyst Jon Ralston claims the new bill originated with  Caesars Entertainment, there are some very good reasons why the company may want to distance itself from the draft legislation.

Firstly Caesars Entertainment may want to avoid publicly opposing Adelson on the issue considering the need to preserve the appearance of unity within the American Gaming Association. Secondly, Caesars Entertainment already operates two online gambling portals in New Jersey and so may want to avoid looking hypocritical by advocating the banning of online casino games countrywide.

Support for the bill?

With the Restoration of America’s Wire Act (RAWA) currently making its passage through Congress, the new moderate bill may find support from those legislators who do not want to entirely support an outright ban on online gambling. Therefore, the latest bill could offer them the opportunity to still receive potential tax revenues for their home state, whilst at the same time not being seen to embrace the so-called “immoral behavior” associated with online gambling.