Gambling Magnate Sheldon Adelson to Battle Online Gambling as NJ Sites Set to Launch

One of the biggest GOP donors, casino billionaire Sheldon Adelson, is preparing to leverage his power by approaching Congress in an effort to ban Internet gambling in the US.

A handful of states have begun to legalize the activity, with New Jersey slated to launch real money online gambling websites by week’s end.

Adelson has called Internet gambling “a cancer to society”.  Writing on Forbes.com, he added that online gambling is “a threat to our society—a toxin which all good people ought to resist.”

Adelson’s Las Vegas Sands Corp. is one of the few brick and mortar casino operators opposed to legalization in the US.

And now the casino magnate is prepared to flex his muscle with Republican members of Congress.

From the Washington Post:

Adelson has begun hiring lobbyists and public relations experts in Washington and in state capitals nationwide to press his case in what is shaping up to be one of the most heavily lobbied debates of 2014.

In January, Adelson plans to roll out an advocacy group, the Coalition to Stop Internet Gambling, that aides say will include advocates for children and others who are considered vulnerable to the temptations and ­potential harms of online betting. The coalition hopes to enlist organizations representing women, African Americans and Hispanics, all seen as likely to be sympathetic to the cause.

Advisers to Adelson say he is intensely focused on the coming battle and talks about it every day with his staff. He has about two dozen experts working nearly full time on the issue.

“In my 15 years of working with him, I don’t think I have ever seen him this passionate about any issue,” said Andy Abboud, Adelson’s top political adviser.

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"Prohibition doesn't work," says Tom Breitling, chairman of Ultimate Gaming, the first to launch legalized online poker in the US.

For New Jersey’s Atlantic City, Web gambling is being hailed as the best thing to happen to that seaside city since the advent of legalized land-based casinos in the late 70’s.

"This is a tremendous undertaking. What we're talking about is a new and complex industry with a lot of participants. In Nevada, we were the only player for six months," said Tom Breitling, founder and chairman of Ultimate Gaming. "In New Jersey there are a number of players, and we're not sure how many will be ready at the start."

New Jersey is also looking to enter into online gambling compacts with other interested states.

Former chairman of the Nevada State Gaming Control Board (GCB) Mark Lipparelli told Gambling911.com that efforts at the federal level to legalize Internet gambling are all but dead and that a state-to-state approach is the only way to go moving forward.

The opportunity to act has passed,” Lipparelli said.

When asked about Adelson's opposition, Lipparelli also took time to offer a positive take on legalization.

"For years, illegal online gambling sites have operated in a perfect ecosystem: no regulation, no taxes and little risk of prosecution. The effect has been that operators grew rich, communities were deprived of badly needed tax dollars and gamblers have been likely been cheated regularly.

"The federal government’s efforts to shut down the industry were justified and beneficial to US citizens as it allowed licensed operators within the US to regroup and prepare for its eventual rebirth.  However, if we fail to act and provide an alternative, US citizens will simply make their way back to illegal off-shore operators who are more than willing to take the action.  Many have already done so. This is an exciting time because the legal industry has stepped up.  Let’s hope policy makers recognize that dedication and investment risk by legitimate businesses.

"There is a considerable public debate to be had at the state level, but we have to recognize that the public is consuming illegal online gaming.  Technology has advanced to a stage where we can move ahead with confidence.  And, as states go live, the tools for regulators will get deeper and more effective."

- Chris Costigan, Gambling911.com Publisher