US Senator Harry Reid Adds Vocal Support To RAWA

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Wednesday, April 8th, 2015 | Written by Adam Brown

Once a supporter of online poker legalization, last year Senate Democratic Leader Harry Reid (D-NV) performed a complete about-turn and announced his support for Sheldon Adelson’s Restoration of America’s Wire Act (RAWA). Speaking about the anti-iGaming bill on KNPR‘s State of Nevada talk show last week, the 75 year-old American politician said:

“Well, we will see what the legislation does–we will see what the House does. But I think, for the state of Nevada, online gambling is not the direction we should go,” before adding “I believe that online gaming is not good for our country.”

Harry Reid’s iPoker U-Turn

The senior Congressman’s anti-gambling stance is all the more surprising as Reid has been Senator for 34 years in a state which is considered the gambling hub of America, and where six of the state’s top ten employers are actually casinos. Furthermore, Reid was once the chairman of the Nevada Gaming Commission (1977-1981), and had been a supporter of online poker legalization for years. Harry Reid’s “road to Damascus” moment seems to have occurred some time last year, and in December he told the Las Vegas Review-Journal:

“I think the proliferation of gambling on the Internet is not good for our country. I think it is an invitation to crime. I think it is hard to control for crime when you’ve got brick-and-mortar places, let alone something up in the sky someplace, and it is very bad for children.”

What’s Changed?

The Senator from Nevada‘s (D-NV) position on online poker now seems to more closely mirror that of Republican Nevada Governor, Brian Sandoval, which at first glance may seem odd for a state largely built on the money generated from casino revenues. Moreover, Nevada has already established its own regulated online poker-only industry, although the Caesars Interactive Entertainment owned WSOP.com site is a virtual monopoly without any real competition, especially not from the state’s only other iPoker site, Real Gaming, which continues to show trace traffic after more than a year of operation.

In other words, now that Nevada’s only viable poker site has returned disappointing revenue results since regulation, the state’s brick-and-mortar casino owners would rather see the industry torn down than join a not so lucrative industry. As a result, online poker is currently seen as extra competition for these land-based casinos, and as encouraging people to play online rather than head to the the destination resort for their gambling pleasures. This in turn will affect the donations made by these casinos to the politicians who subsequently respond to their contributions.

Strong Friendship With Adelson

Nevertheless, political contributions are unlikely to be a factor in Harry Reid’s recent siding with RAWA co-sponsors, Rep. Jason Chaffetz (R–Utah) and Senator Lindsey Graham’s (R-SC), especially as Senator Reid has already announced his decision to retire from politics when his term is complete in 2016. Reid said he was concerned that seeking reelection “would consume campaign money that would be needed in other competitive states as Democrats try to regain control of the Senate.”

Therefore, the retiring senator’s decision to pull his support for online poker is probably a combination of not being able to persuade his fellow Democrats to support his stance, his own conscience, as well as his strong friendship with Las Vegas Sands owner Sheldon Adelson. The two men have enjoyed a friendship from the time before Adelson switched from being a Democrat to a Republican, and it has even been suggested that for the last several terms Reid never faced a serious challenge by Republicans for his senate seat because of the support provided by Adelson. Commenting on Adelson and Reid’s views, Senior Vice President at Las Vegas Sands Corp, Andy Abboud, said:

“I think [Reid] hears Mr. Adelson’s position, and I think the fact that they share that position speaks volumes about where he is on the issue.”

RAWA Vote Difficult To Predict

If the Restoration of America’s Wire Act does ever reach the US Congress for a vote, it is likely other members of the House and Senate will also use their conscience to guide their vote. That is because online poker and gambling is seen as a more a moral issue, and not a matter that requires a strict party-line approach. In addition, the party whips would not view such votes as vital for the party’s life as they realize that the candidate need to justify their votes to constituents back in their home states. Therefore, predicting a result for the bipartisan bill is likely to be difficult at best.