Gaming Law "In the News" ...
A Catania Consulting Group Client Newsletter March 23, 2009
Integrity, Leadership, Experience ...
Frank Catania, Esq. President, former Assistant Attorney General, Director NJ Division of Gaming Enforcement, VP Compliance Players International. frank@cataniaconsulting.com
Gary Ehrlich, Esq. VP, former Assistant Attorney General, Deputy Director NJ Division of Gaming Enforcement. gary@cataniaconsulting.com
Keith Furlong, VP, former Public Information Officer & Legislative Liaison NJ Division of Gaming Enforcement. keith@cataniaconsulting.com
Joseph Kelly, Esq., Associate, Professor of Business Law, SUNY College Buffalo. jkelly@cataniaconsulting.com
Supreme Court Rules against Tribe in Land-into-Trust Case
The U.S. Supreme Court has ruled (Carcieri v. Salazar) that Tribes that were not under federal jurisdiction in 1934, when the Indian Reorganization Act (IRA) was enacted, cannot follow the land-into-trust process set forth in the IRA. By a 6-3 vote, the Justices said the Interior Department could not acquire land for the Narragansett Tribe of Rhode Island, because the Tribe did not gain federal recognition until 1983.
The decision prevents the Narragansetts from using a 31-acre parcel for a housing project (or anything else, including a casino). But it also affects every other Tribe that was not federally recognized, or under federal jurisdiction, in 1934. Tribes affected by the statutory issue number in the dozens, and include some of the more financially successful in Indian Country.
The Narragansetts have sought support for a legislative fix to address the 1934 issue, but major opposition exists and the prospects for success are uncertain. The decision does not appear to affect post-1934 Tribes, whose land is already in trust.
iMEGA Challenge to UIGEA To Be Heard by U.S. Court of Appeals in April
iMEGA’s challenge to the Unlawful Internet Gambling Enforcement Act (UIGEA) will likely be heard by the U.S. Court of Appeals for the Third Circuit in April. The lower court decision (iMEGA v. Gonzales) granted standing to iMEGA to represent the interests of its members, but upheld UIGEA against all constitutional attacks.
As part of its appeal, iMEGA has sought to supplement the appellate record to bring before the Court information concerning complications arising in the New Hampshire and North Dakota state lotteries. It appears that, pursuant to the regulations adopted under UIGEA, credit card companies are blocking all gambling transactions, including those related to legal gambling. Such “overblocking” has resulted in steep declines for lotteries that do a large Internet business.
iMEGA’s position is that this consequence supports its argument that UIGEA is void for vagueness.
Frank Promises Legislation To Repeal UIGEA
Representative Barney Frank (D - MA), long a proponent of regulated Internet gambling in the U.S., has reaffirmed his strong determination to repeal the Unlawful Internet Gambling Enforcement Act (UIGEA), thus lifting the federal ban on Internet gambling. Speaking at a press conference on March 15 in which he presented his agenda for financial reform, Frank said: "I'm going to be pushing it…. The existing legislation is an inappropriate interference on the personal freedom of Americans and this interference should be undone."
Frank, who is Chairman of the House Financial Services Committee, has been the most vocal campaigner against UIGEA, which effectively banned Internet gambling by criminalizing the transfer of funds from a financial institution to Internet gambling sites. Frank's announcement came just a week after a study prepared by international accounting firm PricewaterhouseCoopers indicated that the United States could raise nearly $52 billion in revenue in the next decade if it lifted the ban on online gambling and taxed it instead.
Utah Attorney General Supports Regulated Internet Gambling in U.S.
Utah Attorney General Mark Shurtleff has spoken out publicly in favor of the legalization and regulation of Internet gambling by the U.S. government. Stating that “[i]t is going to happen anyway, let’s put some regulation in place,” Shurtleff continued: “Even though we outlawed it for two years now, it is still going on and it is highly unregulated, so you’ve got unscrupulous people rigging the system. People are getting ripped off.”
Although Shurleff’s argument is hardly novel, it is remarkable because Utah is one of only two states in the U.S. that have no form of legalized gambling.
Catania Gaming Consultants Member Appearances
On March 28, 2009 Frank Catania will be a panelist at the Association of Political and Public Affairs Professionals, 2009 Pollie Awards and Conference in Washington D.C. comparing the start of casinos in New Jersey to online gaming.
In March, Catania Gaming Consultants vice president Gary Ehrlich appeared in Las Vegas at the 8th Annual Regulators Roundtable presented by Gaming Laboratories International. He appeared on a panel addressing “Internet Gaming: U.S. Update.”
Catania Gaming Consultants associate Joseph Kelly was a panelist at the Canadian Institute conference on February 25, discussing the status of Internet gaming in the US. Joe also was quoted by Moneylaundering.Com in “Casinos See Little Reason to Look at Big Spenders”. The Financial Action Task Force in 2008 criticized the United States for not conducting “enhance due diligence on high risk customers.” According to Professor Kelly casinos are extremely careful about anything related to suspicious transactions, “Next to Nuclear power plants, gambling is probably the most regulated industry on earth.”
