New Jersey Voices its Opposition to RAWA

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Thursday, January 25th, 2018 | Written by Stephen Smith

It seems as though politicians have ramped up their efforts to ban online gambling in the United States, with some members of Congress having sent a letter in support of the Restoration of America’s Wire Act (RAWA) to the US Deputy Attorney General Rod Rosenstein on December 19th. Nevertheless, the letter was not discovered by the Poker Players Alliance (PPA) until January, and at this stage it is not known if all the people pushing for a ban are related to Sheldon Adelson and his anti-online gambling campaign group.

However, it does appear to be part of an overall coordinated effort as a few weeks earlier on November 21st the US Department of Justice received a similar letter endorsed by Senators Lindsey Graham and Diane Feinstein. This time around it was a number of Republican representatives forcing the issue, including Dan Donovan (New York), Tom Garrett (Virginia), Brian Fitzpatrick (Pennsylvania), and Louie Gohmert (Texas). Moreover, what is clear is that they are all professing the same outdated information previously dished up to support their tired argument.

Fortunately, several members of Congress immediately mobilized to defend legalized and regulated online poker and casino games in the US. This includes Robert Mendez and Cory Booker of New Jersey (photo), who subsequently worked together with eight other members of the House of Representatives in order to encourage the DOJ to ignore the plea to have online gambling banned.

Dear Rod

Most of the anti- online gambling letters sent to US Deputy Attorney General Rod Rosenstein in the past have come from RAWA supporters seeking a federal ban on internet gambling. This time around, however, the letter sent to Rod Rosenstein urged that the reinterpretation the Wire Act be only applied to sports betting.

According to their argument, by allowing online gambling the country is risking a whole host of ills, such as more underage and adult gambling addicts, as well as a cannibalization of revenues generated by land-based casinos. As a section of the letter then reads:

“Internet gambling carries with it significant law enforcement implications, as the pervasive nature and anonymity of the internet makes it ripe for exploitation by criminals.. Other legal issues arise in preventing online casinos from targeting children and, since the internet knows no state boundaries, in protecting the rights of jurisdictions that bar the activity.”

iGaming Supporters Respond

In response to the anti-iGambling letter sent by Republican representatives, another letter in support of the industry was penned by US Senators Robert Menendez and Cory Booker, with its authors pointing out that none of the doomsday prophecies cited by critics have actually come to pass.

Helping to support their claim, they subsequently provided evidence that internet gambling was not linked to addiction any more than traditional gambling, with New Jersey used as an excellent example of how reality is the exact opposite to what the nay camp have been claiming. Atlantic City, for instance, has been reborn thanks to the state investing in online gambling equipment and technology, and continues to run a tight industry based upon strict regulations in order to keep players safe.

In addition, online gambling has helped New Jersey keep its overall gambling market competitive, with the industry currently worth more than 10% of the state’s total gambling revenues. The letter further pointed out that a blanket ban on internet gambling would punish states like New Jersey, and open the door for black market gambling operators to potentially provide less safeguards for their customers.

Over four years of growth and a perfect record of customer identification and geolocation data should further convince the Department of Justice that online gambling is doing the opposite of what fear mongers assert as, put simply, there have been no problems related to children gambling or people ending up in severe debt since the industry was launched in New Jersey back in 2013. This is all despite what Adelson and his lobbyists have suggested.

The letter written by US Senators Robert Menendez and Cory Booker subsequently ends with the following paragraph: “Given the statutory language, legislative history, and clear evidence that online gaming has shown clear benefits, we respectfully request that you uphold the 2011 decision that the Wire Act does not prohibit online gambling. Please do not hesitate to contact us with any questions.”