December 3, 2015
The Honorable Jason Chaffetz
Chairman, Committee on Oversight and Government Reform
United States House of Representatives
Washington, DC 20515
The Honorable Elijah E. Cummings
Ranking Member, Committee on Oversight and Government Reform
United States House of Representatives
Washington, DC 20515
Dear Chairman Chaffetz and Ranking Member Cummings:
It is my understanding that the Committee on Government Reform and Oversight will hold another hearing on December 9th on the “Restoration of America’s Wire Act” (RAWA) legislation, a bill designed to prevent states from legalizing online gaming and selling lottery tickets online. I wish to, once again, express principled opposition to the legislation.
RAWA is an assault upon the Tenth Amendment: While regulation of gambling has always been the prerogative of the states, RAWA is specifically written to prevent states from legalizing online gaming. Supporters claim the bill is necessary to prevent the spread of gambling on the Internet, but the bill does nothing regarding the hundreds of off-shore gambling sites that are readily assessable and available on any computer or internet capable device. It only prevents states from allowing gambling for their own citizens.
New Jersey, Delaware and Nevada have passed legislation allowing their residents to participate in games of chance on the Internet. Citizens from other states are prohibited from gambling on these legal sites and these states are effectively regulated and policed to prohibit non-residents from gambling. Citizens from South Carolina, Utah, Missouri or any other state that has not passed legislation legalizing gaming for their residents cannot access these sites.
Many members of Congress seem unaware that RAWA also prevents states from selling lottery tickets online. Illinois, Georgia and Minnesota are some of the states selling tickets online, and other states are in various stages of passing laws and setting up systems for selling tickets to their residents. The Georgia Lottery has already spoken out against RAWA, noting it would cost Georgia nearly $40 million.
More importantly, passage of RAWA would empower the federal government to dictate laws and policies regarding state lotteries. States have regulated their own gambling laws since the founding of the Republic. There is no reason revoke their ability to make these decisions. We must keep in mind that a federal government powerful enough to ban online gambling is powerful enough to one-day mandate its legalization nationwide.
RAWA is a form of crony capitalism: Let’s be honest, there is no “crisis” requiring the Congress to take up this legislation. The bill was written by the lobbyist for the owner of a Las Vegas casino empire who pledged to “spend whatever it takes” to get this bill enacted. Sheldon Adelson, the owner of the Sands Casino, believes that state regulated online gaming is a threat to his business model. That is the sole driving force behind the bill. One of the richest men in the world should not be looking to Congress to stifle his competition.
RAWA has broad-based and bipartisan Opposition: Nearly twenty conservative and pro-liberty organizations have objected to the legislation, but so have others including the National Governors Association, Democratic Governors Association, the National Conference of State Legislators, and the North American Association of State & Provincial Lotteries.
For these and other reasons, we urge opposition to the legislation.
Sincerely,
Andrew F. Quinlan
President, Center for Freedom and Prosperity
