Nevada Attorney General Now Supporting A Federal iGambling Ban

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Friday, November 27th, 2015 | Written by Lucy Brown

Nevada may be the gambling capital of the USA, and the first state to embrace regulated online poker in 2013, but the future of its iPoker industry was thrown into doubt this week after Nevada Attorney General Adam Laxalt (photo) said that that he was prepared to lend his support to The Restoration of America’s Wire Act (RAWA). The federal bill which aims to pull the plug on regulated iGaming in the U.S. is supported by Las Vegas Sands CEO Sheldon Adelson and his minions, with Laxalt now stating that he intends to sign a letter encouraging Congress to pass the controversial piece of legislation.

Backing Adelson’s Cause

Nevada Attorney General Adam Laxalt made his surprising revelation during a Vegas PBS interview on Ralston Live. Attacking the country’s iGaming industry, Laxalt said that Eric Holder, the former U.S. Attorney General, abused his power when in September 2011 his opinion on the UIGEA changed the landscape and ultimately led to acceptance of regulated internet gaming in the country.

“..he changed that landscape without gaming companies and without law enforcement and all the parties that should have been involved to make sure we can keep consumers safe, and all of the things that should have been done properly.. So I think in this case we’re looking to return it back to what the status quo was of Congress past,” explained Laxalt.

This marks the first time that Nevada Attorney General Adam Laxalt had openly come out in support of RAWA. In addition to surprising many in the gambling industry, the announcement that he intends to sign the pro-RAWA letter currently circulating amongst state attorneys general now has many parties concerned his actions could potentially lead to Nevada’s gambling industry being set back by decades.

Instant Backlash From Senior Figures

Following the interview on Ralston Live, MGM CEO Jim Murren appearing on Ralston Reports lambasted Adam Laxalt’s support for RAWA, stating:

“I very much hope our attorney general doesn’t sign on to that because that literally would be saying I am against the gaming industry in Nevada, I’m against jobs, I’m against social media, I’m against IGT [slots maker], I’m against the largest employer in the state.”

Another senior figure who added his support to the chorus of disgruntled voices was Nevada State Governor Brian Sandoval who, as a former Attorney General and Gaming Commission Chairman, has been instrumental in helping craft Nevada’s online poker legislation. Issuing an official statement, a furious Sandoval said:

“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.”

Likewise, A.G. Burnett, Chairman of the Nevada Gaming Control Board, backed up the Nevada State Governor’s comments, and seemed baffled that Adam Laxalt would announce his support for RAWA, and not even mention the possibility of a carveout for state regulated online poker. As he commented:

“I am concerned that would mean that offshore operators would still be able to offer illegal, unregulated online poker, while licensed and suitable entities are banned from doing so.”

Why Would Laxalt Support RAWA?

When quizzed by veteran reporter Jon Ralston on his motivation for signing the pro-RAWA letter, Laxalt failed to provide an in-depth reason, although he did deny any contact with Sheldon Adelson, the billionaire casino mogul funding the Coalition to Stop Internet Gambling (CSIG). Nevertheless, an obvious connection can be made linking the two men as Robert Uithoven was the campaign manager who helped guide Laxalt to victory as Nevada Attorney General in 2014. Not only did Adelson contribute to Laxalt’s campaign, but Uithoven happens to be a CSIG board member, as well as the president of lobbying firm j3 STRATEGIES, which has also been hired by the CSIG.

Chances Of RAWA Success Slim

Despite lobbying efforts by anti-online gambling groups, their chances of having current legislation permitting state-by-state regulated iGaming within their own borders revered is slim at best. The UIGEA of 2006 unambiguously gives individual states that right, and when voted upon in the Senate it was passed by a 98-0 margin, and then in the House of Representatives by 421-2 . In other words, 99.6% of Congress were in favor of state regulated online gambling. For Nevada, that figure rises to 100%, as the bill unanimously passed Nevada’s two Legislature chambers on Febuary 21, 2013, with Governor Sandoval signing off final approval to the iPoker bill the very same day.