One of the more outspoken opponents of the gambling industry is once again voicing his concerns about developments in Nevada. Proponents of the recently passed bill that will legalize Internet gambling in the state, however, aren't sweating too much about Tom Grey.
Grey, the executive director of the National Coalition Against Gambling Expansion (NCAGE), is applying pressure to one of his old-time political friends, U.S. Attorney General John Ashcroft--the same John Ashcroft who in 1998 as a Missouri Senator called gambling "a cancer on the soul of our nation," while addressing the Southern Republican Leadership Conference.
Grey and a contingent from his group met with Justice Department officials more than two months ago to encourage the assembly of a task force and sting operation targeting the online casino industry.
Although the meeting took place in April, Grey is making his views known now that Nevada is a step closer to legalizing Internet gambling.
In addition to the meeting, the NCAGE has sent a letter to Ashcroft in an effort to put some new pressure on the Justice Department, but his foes on the other side of the issue say that his tactics are nothing new.
Ashcroft also spoke at national NCAGE meetings when he was a Senator.
At the heart of Grey's argument is the Wire Act of 1961, the common muscle for Internet gambling opponents.
The pressure is getting turned up a notch on the NCAGE's part because the group feels that if the gaming movement isn't thwarted soon, it will be too late.
"We will try to do everything possible to make sure this is something that has his (Ashcroft's) full attention," Grey told the Associated Press. "You do not let the 800-pound gorilla get a lot of momentum going. You put it back in the cage, and Justice can do that. It's absolutely imperative that a message comes out that says to the Las Vegas people, 'Proceed at your peril.'"
Frank Fahrenkopf, the head of the American Gaming Association, isn't fretting. "It's just another one of Tom Grey's idiotic remarks," Fahrenkopf said.
Another reason why there is little worry over the NCAGE's actions is wording within the Nevada bill. Under the legislation, the state will not move forward with an online gaming initiative until it gets the green light from the federal government.
David Robertson of the NCAGE told IGN today that even with this clause, Ashcroft must move fast before various lobbying groups take hold of the process.
"I think it's even more important now that the attorney general act, because now we have the muscle and the money (of the gaming industry) behind it," he said.
Although the bill has already passed and awaits only the signature of Nevada Gov. Kenny Guinn, Robertson predicts dark days ahead for a society which permits online gaming.
"I really think that bringing Internet gambling into the home is the scariest thing that can possibly happen," Robertson said. "We think a relatively small task force and some sting operations could have a pretty big impact in shutting down some of these things. When nothing's done, the industry becomes emboldened, and that's when we get laws passed as we see in Nevada."
The Nevada Resort Association's leader, Bill Bible, who helped guide the bill through the legislative process, was rather cynical about Grey's recent opposition to the bill. He said the NRA will probably contact the Justice Department to make sure its voice is heard.
"Now I suspect that since Tom Grey has brought it up, we'll consider it," Bible said. "The chairman of the Nevada Gaming Commission (Brian Sandoval) has indicated he'll approach the Justice Department to seek an opinion as to (the legality) of wagering on the Internet. I don't know what, if anything, we'd do. It's going to be an area discussed pretty extensively over the coming months and years."
The NCAGE's battle may be harder than the group realizes. Several movements to pass a federal bill prohibiting online gambling have sprouted up over the years on Capitol Hill, but they've all been unsuccessful. Further, Ashcroft wasn't one of the 23 co-sponsors of a 1999 Internet gambling prohibition bill by Sen. Jon Kyl, R-Ariz.
But even more important, according to gaming legal expert Tony Cabot, is the outcome of a pending appeal in the federal court system.
Visa and Mastercard were accused of violating racketeering law and being in violation of the Wire Act by allowing their credit cards to be used at Internet casinos. The court ruled in favor of the credit card companies and Cabot says that, if the appeal is upheld, Ashcroft will have little choice but to allow online casinos to exist.
"The problem (with Grey's effort) is that the attorney general can only enforce laws against acts that are illegal," Cabot said. "If the circuit court upholds this decision, the attorney general will not have anything to enforce. (The Justice Department) does not make law; it enforces laws."