Libertarian think tank the Competitive Enterprise Institute has come out against a federal bill to toughen the 1961 Wire Act and ban online gambling in the U.S.
In a report titled “Republicans’ Bad Bet,” the institute says bills by Rep. Jason Chaffetz, R-Utah, and Senator Lindsey Graham, R-S.C., respectively, would have negative results.
“This bill won’t stop internet gambling,” said the report. “What this bill will do is forbid states from making their own choices about online gambling, guarantee that gambling websites will be operated in foreign countries, and protect special interests like Las Vegas casino owners who support a ban. You know something is wrong when members of an industry are asking for more regulations on that industry.
“Sponsors of this bill claim to defend states’ rights, and criticize the federal government when it tries to regulate marriage, education or health care,” said the report. “But when it comes to internet gambling, they are the ones imposing their personal values on Americans.”
Libertarian Reason Magazine has also criticized the bills calling them the “Chaffetz-Graham-Adelson bill” because of the involvement of Las Vegas Sands owner Sheldon Adelson, a major donor to republican candidates.
Adelson has been personally financing a move to ban online gambling through his Coalition to Stop Internet Gambling.
A ruling by the Department of Justice in 2011 found that the wire act applied only to sports betting and left the door open for states to legalize online gambling within their borders. Three states—Nevada, Delaware and New Jersey—then legalized forms of online gambling.
The Graham-Chaffetz Bill would toughen thee wire act and ban all online gambling even rolling back online gambling in the three states.
Meanwhile, the bills have been going through the legislative process.
In an April hearing before a House Appropriations subcommittee, Attorney General Eric H. Holder Jr. said the Justice Department will look at the wire act again.
“We’ll look at the statute,” Holder said. “I frankly don’t know what the administration’s policy or policy determination would be with regard to that question, but we’ll certainly look at the statute and provide the technical assistance that might be required.”
