Tag: Wire Act

Trump Receives a Major Cash Injection From Las Vegas Sands Owner

Posted on by Grant Mahon

The COVID-19 pandemic has finally stepped from the throne of the most discussed topic in the world. The topic that took its place is the 2020 Presidential Election. Even in the world of casino gambling, the Trump vs Biden race is heavily discussed, especially after the news that the owner of Las Vegas Sands Sheldon Adelson has donated $75 million to the current President’s campaign. Will this cash injection help Trump save his job?

According to offshore sportsbooks, the chance is very low that Trump will stay in the White House for another four years. Instead, with the odds of -210, Joe Biden is the favorite. Still, an even more drastic situation was back in 2016 when Trump took on Hillary Clinton, who was, at one, point a -500 favorite, America did not get its first female President.

Can Trump upset the odds once again? He might, but he’ll need more money for that as his opponent’s campaign currently has way more funds on their hands. This is why Adelson’s donation of $75 million is certainly appreciated in the Blue part of the US.

Who is Sheldon Adelson?

With an estimated net worth of $33.5 billion, Sheldon Adelson is one of the richest men in the United States. The 87 years’ old businessman is the owner of the Las Vegas Sands Corporation, which has several iconic casinos in its domain, including the following:

  • The Venetian Las Vegas (a luxury hotel and casino where the company’s headquarters are located)
  • The Venetian Macao (the second-largest casino in the world)
  • Marina Bay Sands in Singapore (the world’s most expensive integrated resort at the time of the opening in 2010)
  • Sands Macao (the first Vegas-style casino to open on Chinese soil)

The casino magnate used to be a member of the Democratic Party until 1996, before establishing himself as one of the biggest backers of the Republicans.

What’s Behind Trump’s Relationship With Adelson?

According to an article published in the New Yorker in 2013, Adelson changed his political affiliation after having trouble with labor unions in Las Vegas. The same article quoted him complaining about the current tax system in the United States, which makes taxes higher for those with more money.

Why is it fair that I should be paying a higher percentage of taxes than anyone else?

An even bigger reason for Adelson to back the Republican candidate lies in the Wire Act. The proposed bill is supposed to reverse the current online gaming laws in the United States, practically outlawing online slots and all the other popular internet casino games. Adelson is famous as the #1 proponent of this bill, which would secure a prosperous future of his land-based casinos.

The relationship between Adelson and the Republican Party is not a one-way street. Donald Trump has previously called Adelson his friend on many occasions, not to mention that Sheldon’s wife, Miriam Adelson, received a Presidential Medal of Honor from Trump in 2018.

The Trump-Adelson relationship reached its lowest point in August when the President reportedly berated the casino magnate for not donating enough money to his cause. Adelson eventually decided to pay-up, but the question is whether it’s already too late?

 

Grant Mahon

Grant is the self-professed casino madman and reporter that brought this eclectic team of dedicated and talented writers together from around the world to proudly build an humble empire of authentic casino news.

DOJ Postpones Wire Act Implementation For Several Months

Posted on by Carmen Thompson

The US. Department of Justice has decided to postpone the implementation of the 2019 Wire Act Opinion by yet another two-to-six months.

DOJ’s Latest Memo Is Putting Everyone on Edge

A new memo issued by the Department of Justice ( DOJ) has delayed the roll out of the revised Wire Act Opinion in July. Instead, the DOJ would await a ruling in the New Hampshire case which it is leading against the state’s lottery. However, the enactment cannot exceed the deadline which is set for December 31, 2019.

So far, the DOJ has appeared adamant about the enforcement of the Wire Act Opinion which it voted and passed into a law earlier this year in January. Yet, nothing has happened since. This is the second time the DOJ has reneged on a deadline for the enforcement of the Opinion.
Previously, regulators expected to be dealing with the Opinion in April, but then it was pushed back for July 15. The cascade of changes has been occasioned by the mounting litigation that DOJ attorneys have been forced to deal with.

Why Is the DOJ New Opinion Challenged

The DOJ is trying to extend the meaning of the Wire Act to apply to all sorts of gambling and betting activities. This has been deemed a frivolous move by observers and business leaders. The real reason, some have argued, is the DOJ’s affiliation with casino mogul Sheldon Adelson, who has been a long-time opponent of any online gambling.

The latest Opinion on the Wire Act is dangerous to businesses and owners, because the DOJ wants to effectively criminalize anyone who has been running an iLottery since 2011. This goes against the grain of the then decision, which the Obama administration issued.

In the 2011 ruling of DOJ, the Wire Act was deemed not to extend to activities such as lotteries and casinos, but this is to about to change, or so the Department hopes. The arguments that former Attorney General Rod Rosenstein presented in January, 2019 aren’t exactly cogent and nobody is really sure why the Wire Act should apply to anything beyond sports wagers.

New Jersey has even taken matters in its own hands, launching a lawsuit against Sheldon Adelson in a bid to clamp down on the casino-owners’ ambitions to meddle in the iGaming industry.

Business Fighting Back to Avoid Prosecution

Lottery operators have every bit of reason to be contesting the decision as under the decision they would be turned into criminals liable to hefty fines and multiple years in prison. Avoiding prosecution will depend on a clearer language of the Wire Act Opinion.

States seem to be ready to accept the decision as long as it’s not ambiguous. It’s this ambiguity that has been the source of all of DOJ’s trouble so far. New Hampshire dismantled the Wire Act Opinion in a district court, arguing that the new legislation was too badly-defined to give any clear indication to businesses what their next move should be.

This was upheld by a judge, although NH didn’t receive anything more than a nod that the state’s original concerns were well-founded. In other words, no judge has yet said that the Wire Act Opinion has been made on the basis of no legal arguments, but this would probably not happen until states and DOJ clash in court over whether the Wire Act in its would-be new interpretation is designed to favor one specific party exclusively.

Carmen Thompson

Carmen is our residential reporter always on the move and hunting down the latest scoops and rumours to explore. Nothing gets past her keen nose, especially when it comes to some serious Jelly Bean poker tournaments.

Rosenstein Announces DoJ Opinion Will Take Effect

Posted on by Sophia Rojas
  • US Deputy Attorney General Rod Rosenstein signs the enforcement of DoJ’s latest Wire Act Opinion
  • Businesses and states have 90 days to cope with the measures
  • Online gambling may suffer as a direct result

The newly-struck Department of Justice (DoJ) Opinion might prove too disruptive, especially now that it has been officially set to take effect.

DoJ Reinterprets Previous Wire Act Decision

Republican-heavy, the Department of Justice (DoJ) is now (what seems like) officially reversing the December 23, 2011 ruling of the Wire Act. According to US Deputy Attorney General Rod Rosenstein, DoJ should start applying the Opinion laws after an intial 90-day period has expired:

Department of Justice attorneys should adhere to OLC’s interpretation, which represents the Department’s position on the meaning of the Wire Act.

The document, signed by Mr. Rosenstein on January 15, states that “as an exercise of discretion, Department of Justice attorneys should refrain from applying Section 1084(a) in criminal or civil actions to persons who engaged in conduct violating the Wire Act in reliance on the 2011 OLC opinion prior to the date of this memorandum, and for 90 days thereafter.”

Legal Changes That Bite Deep

The changes to the Wire Act interpretation is set to have repercussions for all cross-state businesses. Legal online gambling is in fact the main prey of the new legislation, which has proven rather too restrictive in nature some fear.

In essence, the previous interpretation of the Wire Act allowed lotteries and online casinos to run their businesses with relative freedom, although local challenges have been many. However, the new Opinion published by the DoJ will effectively reset all progress that has been made, effectively equating all forms of gaming to sports betting, and therefore “banning” those activities under the Wire Act.

Mike Kowall Confident about Online Gambling in Michigan

The developments are counterproductive on all levels, but the question remains – can this Opinion really undo the progress achieved on state level?

While the DoJ opinion doesn’t explicitly say anything against state-level legislation, the Office of Legal Counsel (OLC) has clarified in the opinion itself that:

While the possibility of judicial review cannot sub-stitute for the Department’s independent obligation to interpret and faith-fully execute the law, that possibility does provide a one-way check on the correctness of today’s opinion, which weighs in favor of our change in position.

Put simply, federal courts cannot contest the measure on a federal level, although litigation is almost bound to happen if DoJ goes after shared-liquidity schemes. Inter-state gaming is also dependent on data routing, which can be targeted by the latest interpretation of the Wire Act.

The Possible Fallout

The Wire Act reversal seems to be the culmination of casino mogul Sheldon Adelson’s efforts, as the Washington Post has stated. Mr. Adelson has fought long and hard to limit the scope of online gaming, backed by various political entities and lawmakers.

Adelson’s desire to narrow down the reach of the industry has been superhuman, but the fact remains that too many states have now found the public & political support to fight back.

Sophia Rojas

Growing up around law firms, Sophia keeps our team of reporters atop any legislative developments to follow up with a welcomed dose of positive news as our house trivia nut!