Senators Seek Support For Restoration of America’s Wire Act

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Tuesday, August 5th, 2014 | Written by Adam Brown

The anti-online gambling lobby took another swipe at the USA’s nascent iGaming industry after three Senators penned a letter to the Department of Justice (DoJ) and Attorney General Eric Holder requesting that The Federal Wire Act of 1961 be reinstated to its pre-2011 reinterpretation. That’s when the DoJ revised its own interpretation of the Act to allow all forms of Internet gaming, with the exception of sporting event.

Now the senators from both major political parties, namely South Carolina’s Lindsey Graham (R), California’s Diane Feinstein (D) (photo) and New Hampshire’s Kelly Ayotte (R), are calling for the Attorney General Holder to support the ‘Restoration of America’s Wire Act‘, which was introduced earlier this year to the Senate by Senator Lindsey Graham (R-SC), and the House by Congressman Jason Chaffetz (R-UT). If passed, the bill would also make online gambling illegal in the three states already with regulated iGaming industries, i.e. Nevada, Delaware, and New Jersey.

“The clock is ticking”

In the letter penned to the Attorney General Eric Holder, the three senators struck an alarmist tone by warning that “the clock is ticking” and that it was only a matter of time before virtual casinos invaded homes all across the nation. They subsequently stressed their opinion criminal activities such as money laundering could become widespread and that society’s most vulnerable could be targeted by criminal elements, including children. As an extract of the senators’ letter, states:

“Left on its own, the DoJ opinion could usher in the most fundamental change in gambling in our lifetimes by turning every smart phone, tablet, and personal computer in our country into a casino available 24 hours a day, 7 days a week. We note that a number of states are now considering authorizing Internet gambling, which poses a significant threat to states that have banned or limited gambling.”

Senators unlikely supporters of federal ban

Curiously, the three senators had shown little interest in seeking a federal iGaming ban until recently, although Lindsey Graham was the most likely to lend his support considering 68% of 1,000 people surveyed in South Carolina were against online gaming, according to a recent poll conducted by the Charleston Post. In addition, Lindsey Graham has received more than $20,000 in campaign contributions from either Sheldon Adelson, his family, or the Las Vegas Sands as he seeks to run for President of the United States in 2016.

In the past, Kelly Ayotte has shown no interest in the online gambling debate and her sudden stepping into the issue would appear at odds with the credentials of the Tea Party which has traditionally fought against the curtailing of personal freedoms by the federal government.

Finally, Diane Feinstein’s recent move against online gambling is perhaps the strangest of all the trio of senators, as California is noted for its thriving gambling industry which includes numerous card rooms, Indian casinos and horse tracks. Moreover, citizens of the Golden State generally seem in favour of iGaming regulation, making Diane Feinstein’s stance particularly bizarre.

Confident of success?

The success of anti-online lobbyists so far is largely the result of Las Vegas Sands CEO Sheldon Adelson, who has dismissed internet gambling as “fool’s gold,” labeling it “a threat to our society, a toxin which all good people ought to resist.”

The nation’s 10th richest person with a $36.8 billion fortune said he was also prepared to spend whatever was necessary in order to see the practice banned in the US, and already this year he has spent $460,000 lobbying against internet gaming.

Needless to say, the language used in the three senators’ letter largely mirrors that used by Adelson and his supporters, leaving little doubt as to who is pulling the strings behind the scenes. As the senators’ letter concludes:

“We fully expect the Senate will act on our legislation this year, and it is our intent to do whatever we can to make that happen. With your help, and the backing of the DOJ, we are confident we can succeed in this effort. We look forward to working with you on this matter.”

In all likelihood, however, the Department of Justice will not chose to respond to the points mentioned in their letter, and the tug-of-war between the different interest groups will continue to play out on both a federal and state front for some time to come.