RAWA Hearing Backfired on iGambling Opponents

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Saturday, January 9th, 2016 | Written by Shane Larson

Although many in Congress have moved on from the topic of online poker to focus on other more pressing issues, there are still some members of the GOP who are pushing hard to see a federal ban on poker imposed that would reverse the Interstate Federal Wire Act of 2011. The piece of legislation that would accomplish such an outcome is called the Restoration of America’s Wire Act (RAWA), with the bill having been introduced by the Committee on Oversight and Government Reform (OGR) Chair Jason Chaffetz (photo), a firm supporter of billionaire anti-online gambling campaigner Sheldon Adelson.

At the end of 2015, those who support iGaming subsequently nervously awaited a December hearing where RAWA would be discussed entitled “A casino in every smartphone — law enforcement implications”, and as Chaffetz stated at the beginning of the hearing:

“Now, anything connected to the Internet, desktops, laptops, tablets, smartphones, no matter your age, is becoming a casino. I’ve got a problem with that. I think the American people have a problem with that.”

Fortunately, summaries of what actually took place at the hearing suggests that iGaming proponents now have very little reason to worry. In fact, those who oppose online gambling did a pitiful job of making meaningful arguments that would further their cause.

Here are some of the key moments from the hearing:

– Protests About States Rights Started Early. Representative Jody Hice, a Republican Congressman from Georgia blasted RAWA, stating that it was a direct violation of the 10th Amendment, which protects states’ rights from interference from the federal government.

– The Opponent to RAWA Brought His A Game. The only proponent for online gambling invited to testify at the hearing was Mark Lipparelli, a Republican State Senator in Nevada who served as the former Nevada Gaming Control Board Chairman. Using facts and data, he made the case that online gambling had cut down on money laundering and underage gambling in New Jersey, Delaware and Nevada. He urged the committee to focus on passing legislation to crack down on illegal offshore poker sites rather than on sites that were operating legally in the US under regulation from the states. As he explained during the hearing:

“We know there have been many attempts to compromise (regulated iGaming) systems. But those issues are being revealed, thwarted, evaluated and, where warranted, new standards are implemented.”

– Opponents of Online Gambling Lacked Facts. Three proponents of RAWA were called on testify at the hearing–Robert Anderson, who is the FBI Assistant Director; Alan Wilson, who is the South Carolina Attorney General; and Donald Kleine, an attorney from Douglas County, Nebraska. All three of them seemed to stumble at times during their testimonies and made statements that did not come with the benefit of factual data to support them. For example, at one point, Ted Lieu, a Democratic Congressman from California, actually told the witnesses that they were making statements that were “clearly wrong,” such as saying that residents of South Carolina were frequently accessing sites in Nevada and New Jersey. Pulling Wilson and Kleine up on their blatantly specious arguments, Lieu stated:

“I have no doubt that you believe in your testimony, but I do have to point out that parts of your testimony are simply wrong. The notion that you can’t pinpoint location is simply incorrect. Look at the GPS on your smartphone. It will tell you where you are relatively accurately.”

– Jason Chaffetz Tried a Last Minute Save. RAWA’s sponsor, Republican Congressman Jason Chaffetz of Utah, read aloud a 2007 article from the Washington Post detailing how three people had used an offshore poker site to funnel money to groups that support terrorism. He argued that it wasn’t possible to keep these types of activities from taking place in the U.S., saying it was “naive” for anyone to think it was possible.

While it seems like online poker is the winner of this round in the battle, RAWA isn’t going away just yet. Chaffetz continues to say that he will fight for RAWA, and there are clearly other lawmakers who agree with him. There is no word yet on when another hearing may be held, but those who are interested in furthering iPoker legalization rather than seeing it banned will want to keep a close eye out for more information.