Wire Act Threatens Online Gaming

Nevada Attorney General Adam Laxalt’s recent expressed support of resurrecting the Wire Act, which regulates wired communications and could have a stifling effect on the budding online gaming industry, is drawing criticism from Nevada Governor Brian Sandoval (l.), who says his attorney general doesn’t have the best interests of the state at heart.

Despite representing a state in which many of its primary economic drivers—casinos—offer online gaming, Nevada Attorney General Adam Laxalt favors resurrecting the Wire Act.

A gaming industry expert says doing so could kill online gaming in Nevada and cause significant harm.

“Resurrecting the Wire Act as it used to be interpreted would be a bad idea for Nevada,” attorney and Internet gaming industry expert Greg Gemignani told Gaming Today.

Governor Brian Sandoval wasn’t happy with Laxalt’s position.

“The gaming industry is changing and in order for Nevada’s businesses to maintain a competitive edge internationally, we must enact policies that allow the industry to meet the demands of a younger, more technologically engaged gamer,” he said in an official statement. “Furthermore, as a former Attorney General, Gaming Commission Chairman and someone who worked with the industry and the Legislature on Nevada’s online poker legislation, I am very concerned that anyone representing the state’s legal interests would speak out against current state law in our leading industry.”

While there is no formal move to resurrect the Wire Act, Laxalt was among several state attorneys general who signed a petition asking Congress to consider resurrecting the Wire Act. It’s a move that some have said is surprising, coming from Nevada’s attorney general, where several casinos offer online gaming and look upon online gaming for market growth.

Some Las Vegas casinos, though, aren’t bothering with online gaming, and Las Vegas Sands founder and Chairman Sheldon Adelson openly opposes it, possibly due to competitor Caesars Entertainment’s acceptance of online gaming, which it actively is promoting to its rewards clubs members in states where online gaming is legal.