Adelson fighting internet gambling.......

Sands CEO Sheldon Adelson launching fight against Internet gambling
By Peter Wallsten, Of The Washington Post5:46 pm, November 18, 2013

Billionaire casino magnate Sheldon Adelson, whose record-breaking campaign spending in 2012 made him an icon of the new super-donor era, is leveraging that newfound status in an escalating feud with industry rivals over the future of gambling.

Adelson, chairman and CEO of Sands Casino Resort Bethlehem's parent company and best known for building upscale casino resorts in Nevada and more recently in Asia, wants to persuade Congress to ban Internet betting. He says the practice is a danger to society and could tarnish the industry's traditional business model.

Nearly all of his competitors, including Caesars Entertainment and MGM Resorts, disagree. They say regulated Internet gambling can be done safely and can boost the industry.

New Jersey rolls out its Internet gambling program with an invitation-only trial starting Thursday. The entire state could join in on Nov. 26 — although residents along the Delaware River and the state's other borders could be excluded.

"Digital fencing" is planned along Jersey's borders to make sure, as the law dictates, only New Jersey residents sign on to the casino-run websites. Officials aren't certain exactly where the border will be, meaning small pockets of people living in border towns like Phillipsburg could be denied access.

Adelson, to make his point against all Internet gambling, is preparing a public campaign to portray online gambling as a danger to children, the poor and others who could be exploited by easy access to Internet betting.

New Jersey and two other states have moved to legalize online gambling, and Pennsylvania is among at least a dozen others expected to consider it next year.

The new push against Internet gambling is Adelson's biggest foray into a legislative debate directly related to his business, and it sets up a test of the influence that a mega-donor can exert when lawmakers know he is willing to spend enormous sums to influence elections.

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.

Rivals view Adelson's initiative as a major threat and say they will mount a counteroffensive arguing that his proposed ban would foster a dangerous, unregulated black market.

Some competitors noted that Adelson, whose chosen political candidates lost last year, could not guarantee success, even with his ability to tap a seemingly bottomless bank account.

"We don't make a habit of picking fights with billionaires," said John Pappas, executive director of the industry-aligned Poker Players Alliance. "But in this case, I think we'll win, because millions of Americans who want to play online will oppose this legislation, along with dozens and dozens of states that want the freedom to authorize any kind of gaming they see fit."

Adelson, whose Las Vegas Sands properties include the Venetian and the Palazzo on the Las Vegas Strip and elaborate new casinos in Macau and Singapore, created a stir in last year's elections when he and his wife spent nearly $100 million, according to the Center for Responsive Politics, to help Republicans. He almost single-handedly kept Newt Gingrich alive in the Republican primaries and spent generously on ads in congressional races.

His lavish spending followed 2010 court decisions permitting unlimited political donations by individuals, corporations and labor unions.

Adelson, 80, has been known primarily as an ideological donor. He has spent millions in support of Israel and its Likud party, and last year he backed conservative causes in the United States beyond presidential and congressional politics. He helped bankroll anti-union and anti-tax initiative campaigns in California.

Adelson's competitors say the bigger risk comes with a ban that would effectively encourage gambling sites to move offshore, beyond the reach of U.S. regulators. Online gambling can be more tightly regulated than casino gambling, supporters say.

Until recently, there was a widely held view that most online gambling violated federal law. But a 2011 Justice Department legal opinion cleared the way for states to allow many forms of online betting.

Adelson's stance puts him at odds with one of his party's leading 2016 presidential contenders. New Jersey Gov. Chris Christie embraced the idea as a way to help bolster Atlantic City, where casinos have been struggling to survive but will benefit by operating that state's online gambling. Christie called the measure a "responsible, yet exciting option that will make Atlantic City more competitive while also bringing financial benefits to New Jersey as a whole."

Delaware and Nevada have also legalized some forms of online gaming.

Adelson will fly to Washington as soon as January to meet with lawmakers.

The Morning Call contributed to this story.


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