The news two days ago that Nevada Attorney General Adam Laxalt would be signing a letter from other AG’s in support of the federal ban regarding online gaming and poker came as a stunner. Not only did it surprise the online gaming and poker communities – and the casinos that support online gaming – but it particularly surprised Laxalt’s bosses in the state house and Governor’s quarters in Carson City. Evidence has now come to light that demonstrates that Laxalt may be directly influenced by billionaire casino owner Sheldon Adelson and his continued drive to ban online gaming and poker.
Laxalt came out on Tuesday supporting the federal bill regarding the banishment of online gaming and poker, the Restoration of America’s Wire Act (RAWA) of 2016, putting out some flimsy arguments as to why he was taking the action. “Congress spoke on this issue (online gaming) and has an existing Wire Act,” Laxalt stated toJon Ralston on his show Ralston Live. Laxalt would then go on to state that further reasoning for his support was the factor that “it was an overreach by the executive branch” into the issue.
All of this is despite the current stance of the state of Nevada regarding the subject. One of three states to have passed online gaming regulations (albeit only for online poker), Nevada’s governor Brian Sandoval wasn’t pleased with his AG stepping outside the lines as he did. As reported earlier this week here at Poker News Daily, Sandoval stated that he was “very concerned that anyone representing the state’s legal interests would speak out against current state law in our leading industry.” Sandoval also stated he disagreed with Laxalt’s vision of state’s rights versus federal legislation.
Looking a bit further into the issue, however, there is evidence to state where Laxalt’s decision came from. According to campaign contributions for Laxalt’s 2014 run for Attorney General, Adelson and his wife each are listed as donating the most possible for an individual donation ($10,000) and the Venetian Casino Resort and the Las Vegas Sands Corporation – properties owned by Adelson – also donated $10,000 each (in fair disclosure, Boyd Gaming, the Bellagio, MGM Resorts International and poker professional Cary Katz also donated the maximum to his campaign). This doesn’t include any contributions from political action committees (PACs) such as NV Jobs PAC and the New Nevada PAC, which received almost $500,000 from Adelson.
Laxalt also has a personal connection to Adelson’s operations. According to reports from FlushDraw.net’s Haley Hintze, one of the major lobbying firms behind Adelson’s Coalition to Stop Internet Gambling (CSIG) is j3 Strategies. Millions of dollars have been pushed through this organization to lobby against potential laws in California and Pennsylvania (j3 Strategies lists the Las Vegas Sands Corporation and the CSIG as their first two clients). The lobbying group was behind mailings to Pennsylvania residents against current plans in the state to regulate online gaming and poker and a jerry-rigged opinion poll against online poker. They were also critical in getting Laxalt elected to the Attorney General’s office in 2014.
The founder and president of j3 Strategies is Robert Uithoven, who just happens to be a sitting board member on the CSIG. Uithoven, according to Hintze, actually testified on behalf of the CSIG during hearings in California earlier this year regarding online poker regulation. But what is astounding – and makes Laxalt’s denials of ties to Adelson hard to believe – is a statement from Laxalt himself and the identity of one of the members of j3 Strategies.
According to the j3 Strategies website (in blue at the bottom of the page), there are two “testimonials” as to the work of j3 Strategies. One is from Andy Abboud, who says the Las Vegas Sands Corporation has “relied on the counsel” of Uithoven in their “political and public policy initiatives.” The second is from Laxalt himself, which states, “We pulled off one of the most monumental victories in Nevada’s political history and it was done through the development of a thoughtful political plan, focused determination, and steady guidance every step along the way. I was proud to have Robert Uithoven by side through it all, helping build and lead my campaign team and oversee the execution of our campaign. He was always accessible and his daily counsel helped us secure a campaign victory that no political pundit in Nevada dared predict.”
Then there is one person that is employed by j3 Strategies. Listed as one of the members of the organization (of four, with the other three serving legal or promotional purposes) is Tessa Laxalt, who is by definition the only person listed as a registered “lobbyist” for j3 Strategies and who is the sister of Adam Laxalt (technically half-sister, but that’s not important here; let’s just say the family history is convoluted). j3 Strategies state that the female Laxalt has worked with the Las Vegas Sands Corporation as a lobbyist, but only after completing her internship with the Nevada Legislative Session earlier this year.
Laxalt denies any ties to Adelson or his CSIG, but it is difficult to believe him after the evidence is presented. It becomes even more difficult when he seems to be following a key piece of Adelson’s federal legislative efforts despite what his own state – and his fellow Republican governor – has decided as a course of action. These instances show that the effects of “crony capitalism” stretch down to the actions in the state legislatures, not just the halls of federal government.
