For years Senate Majority Leader Harry Reid has opposed online gambling. No more. Staffers from his office are circulating a bill that would legalize web poker, the kind where real money exchanges hands. Could it be that Reid’s about face has something to do with major casino companies being among the largest donors in his recent re-election fight?
According to the Wall Street Journal, casino interests believe that Reid, in his position as majority leader “might be able to push the poker measure into another bill…” The bill would likely not pass as stand alone legislation. WSJ article here.
If successful, the bill would overturn the 2006 law banning U. S. banking and financial institutions from processing online gambling transaction. The law has resulted in such sites moving offshore to accommodate the roughly 10 million American online poker players.
Casino interests behind the measure argue that the legislation would provide necessary government oversight for the practice. The bill would also raise revenue at both the federal and state level through taxation of casino profits.
In accordance with casino interests, the draft legislation would only permit existing casinos, horse tracks and slot machine makers to run online poker sites for the first two years. That would inhibit the ability of other companies to compete effectively with the casinos who would get a two year head start in establishing their brands. The bill would also establish government oversight at the state level to avoid federal regulation of the new industry.
Among the major backers of the bill are MGM Resorts International and Caesars Entertainment Corporation. Caesars Entertainment, formerly Harrah’s Entertainment, is the largest casino company in the world. It also owns branding rights to the “World Series of Poker”.
Personally, I’m all for repealing the 2006 anti-online gambling law. But not like this. Unless you’ve been living in a cave, you already know that money talks in Washington. Every time the issue of campaign contributions from interest groups comes up, the gullible voters are told that money buys access, not favors. Here is a specific instance where it takes little imagination to add two and two to come up with four, a position flip complete with sponsored legislation in exchange for major campaign contributions. Buying influence? Legal bribery? Corruption? Pick your term.
The Wall Street Journal calls internet poker a “top priority” for the casino industry looking to shore up revenues in a distraught gaming market. Their game plan is obvious, and so is the ethical lapse of the Senate Majority Leader.
Contributor, aka tidbits. Retired attorney in complex litigation, death penalty defense and constitutional law. Former Nat’l Board Chair: Alzheimer’s Association. Served on multiple political campaigns, including two for U.S. Senator Mark O. Hatfield (R-OR). Contributing author to three legal books and multiple legal publications.