(Newswire.net — October 27, 2020) — In recent years, online gambling has become a legitimate form of entertainment for many Americans and a vital tax revenue source for many US states. However, the laws surrounding internet gaming and casinos remain complex and open to interpretation by each new administration and attorney general. Although online gambling is not seen as a significant issue in the presidential race, the outcome could still have an impact on the prospects of this industry.
Where the candidates stand
Both the Republican and the Democratic Party include prominent supporters and critics of internet gambling. It’s fair to say that this is not a partisan issue. Individual members of Congress, senators, judges, and backers all have their own opinion, often underpinned by factors other than political ideology. For instance, the strong religious convictions of many Republican backers may inform their views on gambling generally, but this could equally be the case with some democrats.
It does seem like the Trump administration has consistently sought to block and frustrate the expansion of online casinos. In contrast, Democrat candidate Joe Biden appears to support fair regulated internet gambling. The current favorite to win has never taken an anti-gaming stance in his 40-year career as a politician and has stated that he wants to see a safe, fair, and corruption-free online gambling environment.
A major source of income
Since a 2018 Supreme Court ruling decided in favor of the state of New Jersey that individual states could set their legislation regarding online gambling and sports betting, the activity has provided a significant source of tax income for several states, with more likely to follow. This means that US citizens can legally play online using casino apps in New Jersey, which connect them to a wide range of table games and slots directly from their phones.
Tax income from online gambling is now an essential part of many state budgets and is even more crucial as the coronavirus pandemic has decimated the US economy. With the possibilities of further lockdowns on the horizon, more people are turning to casino sites as a form of entertainment that can safely be enjoyed at home or while isolating. And as bricks-and-mortar casinos remain heavily restricted or closed, more casino companies look at online gambling as an alternative income stream.
Opposing voices
Not all real-world casino owners favor the opening-up of online gaming. Sheldon Adelson is the founder and CEO of the Las Vegas Sands casino group and a vehement and highly active opponent of online gambling. He is also the 28th richest person in the world and a major Republican Party donor. In August and September this year, he pledged $75m to the Trump presidential campaign.
Adelson backed the move by Republican Senator Lindsey Graham and former US representative Jason Chaffetz to explicitly include the prohibition of all forms of internet gambling in the 1961 Wire Act. This Kennedy-era law was specifically intended to target Mafia sports betting across state lines, and in 2011 the Department of Justice clarified that it did not apply to broader internet gambling.
Following pressure from Adelson, Graham, and Chaffetz in 2018, the Department of Justice reversed its position. It stated that the Act prohibited all wire communications connected with betting across state lines and that this did indeed apply to online betting of all kinds.
New Hampshire
The state of New Hampshire soon brought a lawsuit against the US government, alleging that this interpretation of the Wire Act effectively prohibited perfectly legal cross-state lotteries. The point was not that federal agents were likely to clamp down on the lottery, but rather that the Wire Act is largely unfit for purpose in the internet era. In 2019 a federal court ruled in favor of the New Hampshire lottery, but the case looks likely to go to the Supreme Court, where the verdict may be overturned again.
Joe Biden hails from Pennsylvania, which has the highest-grossing commercial gaming revenue in the US outside of Nevada. Delaware, which he represented in the senate, also enjoys legal online gambling. If he becomes the next president, Biden will likely install a new attorney general who may be more sympathetic to the online gambling question than the incumbent. He will be more likely to look favorably on New Hampshire should the case come to the Supreme Court.
The presidential election looks likely to have far-reaching consequences in many areas, online gaming being one of them. This sector’s economic importance in today’s world cannot be denied; it just remains to be seen whether it will be granted a level playing field or not.