Another year, another push to ban US Internet gambling

Not dissuaded by last year’s failed efforts to have the Restoration of America’s Wire Act (RAWA) passed, Rep. Jason Chaffetz (R-Utah) earlier this month re-introduced the bill into US House of Representatives by. It is expected to be introduced in the Senate by South Carolina Republican Lindsey Graham.

As ever, pulling all the strings and providing the financial clout in the background is Sheldon Adelson. Not that far in the background mind you. RAWA was originally drafted by one of his lobbyists and he has repeatedly declared his intentions to do “whatever it takes” to have Internet gambling banned across America.

The question is, will 2015 be the year when Adelson’s whatever it takes, proves to be enough?

What it takes

Truck loads of cash. Something Adelson does have in truck loads and which he is eager to put towards the cause. He was (by far) the largest single donor to political action committees (PACS) during the 2012 election, donating a staggering $93 million. This was to PACS required to disclose the source of their donations. It doesn’t include contributions to organizations not required to disclose.

It also takes a cohesive and organized lobbying machine. Something else that is in place via the Adelson co-founded and funded Coalition to Stop Internet Gambling. These guys have some of the catchiest anti-gambling tag lines you’ll find anywhere, like…

“CLICK A MOUSE AND LOSE YOUR HOUSE“

While there are lobbying efforts in support online gambling they aren’t unified. The obvious choice to lead this fight would be the American Gaming Association but due to Adelson’s influence within the AGA they remain on the sidelines.

Of course all this wasn’t enough in 2014.

There are suggestions however that in the lead up to an election year, Adelson’s lobbying dollar in 2015 will gain far more political currency. As an example, he is helping fund Lindsey  Graham’s Security Through Strength PAC which could see Graham have a tilt at a 2016 presidential run. As if Senator Graham was ever going to be dissuaded by RAWA’s failure last year !

Las Vegas Sands’ online gambling history

Adelson claims that his fight to ban online gambling motivated purely on moral grounds.

Skeptics of this counter with the argument that he has a lot to gain financially from an online ban. Every dollar spent at an online casino is a dollar not spent inside one of Las Vegas Sands’ many casino properties, and competitors like Caesars are making a push into online while LV Sands is not.

The high moral stance loses more credibility when it is considered that LV Sands tried hard,several times to establish an online casino presence:

• 2001: LV Sands states in SEC filings:
  “the company is actively pursuing the possibility of developing and operating an Internet gaming site and is currently exploring other business opportunities for expansion.”
• 2002: LV Sands states in SEC filings:
  “the Company entered into a joint venture agreement to assess the feasibility of developing and operating an Internet gaming site…the Company is committed to contribute approximately $1.0 million.”
• 2003: LV Sands subsidiary gains Alderney online gambling license. Venture fails and in 2005 license is relinquished
• 2006: LV Sands partners with Cantor Gaming to “launch an online casino and poker site initially
  aimed at serving the United Kingdom market.”

Adelson was Chairman & CEO of LV Sands this entire time.

His company never managed to get a successful online gambling operation going, but not through lack of trying.