RAWA Anti Online Gambling Bill Suffers Setback

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It was a good day for those who support online gambling in the United States. The RAWA bill, that seeks to reinstate the pre-2011 interpretation of the Federal Wire Act, had a congressional hearing. The result of the hearing was so disastrous that the backers appeared nothing short of jokers.

The RAWA bill has the backing of billionaire casino owner Sheldon Adelson. He is one of the biggest campaign contributors to the Republican Party and has made wiping out Internet gaming a personal obsession. Before 2011, the interpretation of the Wire Act was that all forms of online gambling were illegal. In 2011, the Department of Justice averred that states could allow intrastate online gambling, except for sports betting.

Much of the opposition to the bill came from the Republican Party. The main point was that the bill went against the 10th amendment of the U.S. Constitution, which defines the balance of power between the federal government and the states. It was even reported that Republican Representative from Utah Jason Chaffetz, one of the lead sponsors of RAWA, had scouted for witnesses to testify against the bill. One of these was former Nevada Gaming Control Board Chairman Mark Lipparelli. Lipparelli, who is a Republican state senator and gaming consultant, was the only witness who came prepared with data and facts. He informed the committee that the three states that had legalized intrastate online gambling had put in place successful regulatory structures to prevent the usage of online gambling for money laundering, underage gambling and other nefarious activities. He told lawmakers the effort should be on stopping offshore online gaming companies from illegally operating in the United States.

South Carolina Attorney General Alan Wilson, FBI Assistant Director Robert Anderson and Douglas County (Nebraska) Attorney Donald Kleine seemed to be making up testimony as the hearing went along. It was evident that they were not aware of the technology that can prevent online gamblers from wagering across state lines. In his testimony Wilson claimed that South Carolina citizens were playing online in Nevada and New Jersey. Anderson was chastised for claiming that online gaming supports money laundering, without being able to provide an iota of evidence.

It must be pointed out that the 2011 interpretation of the Wire Act did not open the floodgates to legalized online gambling. Nevada, New Jersey and Delaware are the only three states to legalize the activity and the numbers generated are nothing to rave about. This has slowed down the process, with states like California and Pennsylvania preferring to wait and watch rather than rush headlong.

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