A dangerous bet

Court action lets states make the call on online gambling, and that opens the door to significant economic and social challenges

Stop Predatory Gambling New Mexico was very disappointed by the decision of the U.S. Supreme Court to throw out the Professional and Amateur Sports Protection Act (PASPA) and allow states to legalize online sports gambling. Nothing in this decision legalizes online gambling in all states, but it allows states to make their own laws regarding online gambling.

However, it is possible for the Justice Department to prosecute online gambling through the Wire Act, or for Congress to pass a new law criminalizing online gambling. The Stop Predatory Gambling Foundation, of which I am also chairman, is looking at both of those options, unlikely as they seem in the short run.

In New Mexico, it is guaranteed that the gambling predators will be passing out significant amounts of campaign, and probably other, money to willing legislators to get legislation passed in the next session to legalize online sports gambling. Probably, the major hurdle that legislation would have to clear would be tribal gambling compacts. Those compacts spell out in great detail what gambling options are legal on- and off-reservation in New Mexico. If the state decided to license, regulate and tax online gambling, it would constitute a major increase of gambling outside the confines of the compacts. That would almost certainly violate the compacts and allow the tribes to stop paying revenue sharing to the state to the tune of over $150 million per year.

Also, be certain that the gambling industry will push to expand online gambling to include all forms of casinostyle gambling. Imagine a portable casino in your smartphone, your tablet and your family room computer.

All state-sanctioned gambling is one of the major engines promoting poverty in the U.S. and helps to restrict upward financial mobility in a great many of our residents. It cannibalizes local businesses and creates other major social problems, such as addiction, criminal activity, divorce, homelessness and suicide. Studies at the University of Connecticut and Lethbridge University in Alberta, Canada, reveal online gambling is horribly addictive and would just magnify all the problems associated with our other forms of gambling.

Stop Predatory Gambling New Mexico will campaign vigorously to prevent the legalization of online gambling in New Mexico. It’s time for the government, both tribal and state, to get out of the predatory gambling business.