New Jersey sues the Justice Department over the alleged influence of casino boss Sheldon Adelson over the latest Wire Act opinion
New Jersey’s Attorney General has filed a lawsuit against the US Department of Justice for failing to provide answers about the possible influence of casino mogul Sheldon Adelson over the latest opinion on the so-called Wire Act.
The Interstate Wire Act was enforced back in 1961. It criminalized interstate gambling in a bid to tackle organized crime’s involvement in the nation’s gambling industry. In 2011, the Justice Department issued an opinion that the Wire Act applied to all forms of online gambling. That opinion faced massive backlash from the industry and the federal agency was forced to revise its wording. The Justice Department then opined that the Wire Act only applied to sports betting.
Following the publication of that opinion, New Jersey moved to legalize online casino gaming on its territory. First legal operations went live in 2013. The sector has generated more than $2 billion in revenue since then and has contributed more than $150 million in taxes to the state.
In January, the Department of Justice issued a new opinion on the Wire Act, stating that it applied to all forms of digital gambling, including casino games, lotteries, and sports betting. The most recent opinion further read that federal prosecutors could level criminal charges against operators of online gambling services, even in US territories where the practice has been legalized.
New Jersey’s Lawsuit
The office of New Jersey Attorney General Gurbir S. Grewal announced on Tuesday that he has filed a lawsuit in a US District Court against the Justice Department over the latter’s failure to provide information about the lobbying efforts of businessman Sheldon Adelson and his influence over the issuance of the latest opinion on the Wire Act.
Attorney General Grewal filed in February a Freedom of Information Act request, seeking answers about Mr. Adelson’s alleged involvement in the reversal of the Wire Act opinion from 2011. The Department of Justice has not provided the New Jersey official with the requested records or with a response on why the documents asked for have not been provided.
In his legal complaint, Attorney General Grewal said that New Jersey requested an expedited response as the new Wire Act opinion is set to take effect in mid-June. Under the Justice Department’s own guidelines, an expedited request under the Freedom of Information Act should be fulfilled within a 20-day period.
Sheldon Adelson is the CEO and Chairman of Las Vegas hotel and casino giant Las Vegas Sands. The billionaire businessman has been among the staunchest opponents of legal online gambling in the US as he believes the sector is a real threat to the land-based casino industry.
Commenting on New Jersey’s lawsuit, the state’s Attorney General said on Tuesday that they consider it “especially important” to figure out whether the upcoming federal crackdown on online gambling “is the result of a lobbying campaign by a single individual seeking to protect his personal business interests.”
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