New Jersey Goes Head To Head With DOJ

The State of New Jersey has officially sued the United States Department of Justice for failing to meet the requirements of the Freedom of Information Act and not providing New Jersey any documents that link business magnate Sheldon Adelson with the federal crackdown on online betting. The move comes after mounting pressure on the State from the US federal government, to reconsider the legalization of online gambling.

Early this year, the US Federal Government expanded the coverage of the US Wires Act, barring all forms of interstate online gambling (except for State Lotteries), effective June 14^th, 2019. While some blame the Federal’s conservative leanings for the move, industry insiders believe that the federal pressure may stem from the founder and chairman of the Las Vegas Sands Corporation, Sheldon Adelson.

Adelson and his wife Miriam have for years been active opponents of the legalization of online gambling. Over the years, the couple has petitioned the Congress to strip online gambling of its legality across the country, stating that online casinos would increase gambling addiction.

Personal motives may be the cause

Pro-online gambling legislators and residents in New Jersey don’t buy Adelson’s reasoning. They believe that his brick-and-mortar Las Vegas Sands casinos may have more to do with the Federal pressure on the State.

The Adelson family have also been active supporters of the Republican Party and the Trump Government. They donated over $122.3 million in the US midterm elections. They have also donated an estimated $20 million to Future45, a highly-political independent organization which backed President Trump during the elections. There is growing fear that their political clout may be the reason why States are receiving push-back from the Federal Government regarding the legalization of online gambling.

In an interview with the press, Gurbir Grewal, the New Jersey Attorney General stated that New Jersey had petitioned for information in early February, but the Department of Justice had failed to comply with the petition and had not shared information. He believes that the people of the State deserve the facts and that he would fight for Jersey’s rights. Many online gambling supporters echo his feelings, believing that an entire state should not pay the price to protect the business interests of an individual.

Online gambling has been legal in New Jersey from 2013, and the industry brings revenues upwards of $353 million annually, with $60 million as gaming taxation. Illegalizing online gambling can take away these revenues and severely affect the financial standing of the State.

The registered case – State of New Jersey v. U.S. Department of Justice, 3:19-cv-12218 – is yet to receive a verdict.