Internet Gambling Prohibition Act
   HOME

TheInfoList



OR:

The Internet Gambling Prohibition Act (IGPA) was a 1999 bill in the
US Senate The United States Senate is the upper chamber of the United States Congress, with the House of Representatives being the lower chamber. Together they compose the national bicameral legislature of the United States. The composition and powe ...
to ban
Internet gambling Online gambling is any kind of gambling conducted on the internet The Internet (or internet) is the global system of interconnected computer networks that uses the Internet protocol suite (TCP/IP) to communicate between networks and ...
.
"Internet Gambling update"
'' Internet Gambling information''. Passage of the bill was defeated, in large part, by the lobbying efforts of
Jack Abramoff Jack Allan Abramoff (; born February 28, 1959) is an American lobbyist, businessman, film producer, writer, and convicted felon. He was at the center of an extensive corruption investigation led by Earl Devaney that resulted in his conviction a ...
. The bill was supported by Christian conservative groups such as
Focus on the Family Focus on the Family (FOTF or FotF) is a fundamentalist Protestant organization founded in 1977 in Southern California by James Dobson, based in Colorado Springs, Colorado. The group is one of a number of evangelical parachurch organizations ...
,
Moral Majority Moral Majority was an American political organization associated with the Christian right and Republican Party. It was founded in 1979 by Baptist minister Jerry Falwell Sr. and associates, and dissolved in the late 1980s. It played a key role in ...
, and the Christian Coalition. A new version of this legislation was attached to the
SAFE Port Act The Security and Accountability For Every Port Act of 2006 (or SAFE Port Act, ) was an Act of Congress in the United States covering port security and to which an online gambling measure was added at the last moment. The House and Senate passed ...
and became law in 2006. In 1999, eLottery, inc. hired
Jack Abramoff Jack Allan Abramoff (; born February 28, 1959) is an American lobbyist, businessman, film producer, writer, and convicted felon. He was at the center of an extensive corruption investigation led by Earl Devaney that resulted in his conviction a ...
's lobbying firm,
Preston Gates & Ellis Preston Gates & Ellis, LLP, also known as Preston Gates, was a law firm with offices in the United States, China and Taiwan. Its main office was in the IDX Tower in Seattle, Washington. In 2007 the firm ceased to exist, merging with Kirkpatrick ...
, to represent their effort to block the bill. ELottery, an
Internet The Internet (or internet) is the global system of interconnected computer networks that uses the Internet protocol suite (TCP/IP) to communicate between networks and devices. It is a '' network of networks'' that consists of private, pub ...
-based firm, intended to sell state lottery tickets online, and this business venture was threatened by the IGPA. Abramoff recruited
Ralph Reed Ralph Eugene Reed Jr. (born June 24, 1961) is an American political consultant and lobbyist, best known as the first executive director of the Christian Coalition of America, Christian Coalition during the early 1990s. He sought the Republican ...
, his
College Republicans College Republicans are college and university students who support the Republican Party of the United States. Many members belong to the organization College Republican National Committee (CRNC), College Republicans United (CRU), or various in ...
cohort, and Rev. Louis P. Sheldon of the
Traditional Values Coalition The Traditional Values Coalition (TVC) was an American conservative Christian organization. It was founded in Orange County, California by Rev. Louis P. Sheldon to oppose LGBT rights. Sheldon's daughter, Andrea Sheldon Lafferty, was the execut ...
to oppose the legislation. Although Reed was a former Director of the Christian Coalition which now supported the bill, Abramoff suggested a strategy for opposing the bill on the basis of exceptions in the bill for
horse racing Horse racing is an equestrian performance sport, typically involving two or more horses ridden by jockeys (or sometimes driven without riders) over a set distance for competition. It is one of the most ancient of all sports, as its basic p ...
and
jai-alai Jai alai (: ) is a sport involving bouncing a ball off a walled-in space by accelerating it to high speeds with a hand-held wicker ''cesta''. It is a variation of Basque pelota. The term ''jai alai'', coined by Serafin Baroja in 1875, is also oft ...
. Reed and Sheldon later claimed that they did not know that they were effectively doing this work on behalf of a gambling corporation. These claims contradict email exchanges between Abramoff and Reed which discuss eLottery and its
parent company A holding company is a company whose primary business is holding a controlling interest in the securities of other companies. A holding company usually does not produce goods or services itself. Its purpose is to own shares of other companies ...
, eLot in 2000 and 2001. In June 2000, Susan Ralston helped Jack Abramoff pass checks from eLottery to
Lou Sheldon Louis P. Sheldon (June 11, 1934 – May 29, 2020) was an American Presbyterian pastor, and then Anglican priest, and chairman of the social conservative organization, the Traditional Values Coalition. He principally spoke and wrote about controv ...
's
Traditional Values Coalition The Traditional Values Coalition (TVC) was an American conservative Christian organization. It was founded in Orange County, California by Rev. Louis P. Sheldon to oppose LGBT rights. Sheldon's daughter, Andrea Sheldon Lafferty, was the execut ...
( TVC) and also to
Grover Norquist Grover Glenn Norquist (born October 19, 1956) is an American political activist and tax reduction advocate who is founder and president of Americans for Tax Reform, an organization that opposes all tax increases. A Republican, he is the primary ...
's
Americans for Tax Reform Americans for Tax Reform (ATR) is a politically conservative U.S. advocacy group whose stated goal is "a system in which taxes are simpler, flatter, more visible, and lower than they are today." According to ATR, "The government's power to control ...
(
ATR ATR may refer to: Medicine * Acute transfusion reaction * Ataxia telangiectasia and Rad3 related, a protein involved in DNA damage repair Science and mathematics * Advanced Test Reactor, nuclear research reactor at the Idaho National Laboratory, ...
), en route to
Ralph Reed Ralph Eugene Reed Jr. (born June 24, 1961) is an American political consultant and lobbyist, best known as the first executive director of the Christian Coalition of America, Christian Coalition during the early 1990s. He sought the Republican ...
's company, Century Strategies :''"I have 3 checks from elot: (1) 2 checks for $80K payable to ATR and (2) 1 check to TVC for $25K," wrote Ralston, "Let me know exactly what to do next. Send to Grover? Send to Rev. Lou?"'' Abramoff directed his client, eLottery, to direct $25,000 in payments to Sheldon's Traditional Values Coalition, and also checks totalling $160,000 to
Grover Norquist Grover Glenn Norquist (born October 19, 1956) is an American political activist and tax reduction advocate who is founder and president of Americans for Tax Reform, an organization that opposes all tax increases. A Republican, he is the primary ...
's
Americans for Tax Reform Americans for Tax Reform (ATR) is a politically conservative U.S. advocacy group whose stated goal is "a system in which taxes are simpler, flatter, more visible, and lower than they are today." According to ATR, "The government's power to control ...
. Abramoff then directed Norquist to receive his checks and write another check for $150,000 to Faith and Family Alliance, a Delaware-based
political advocacy Advocacy is an Action (philosophy), activity by an individual or advocacy group, group that aims to influence decision making, decisions within political, economic, and social institutions. Advocacy includes activities and publications to infl ...
group started by Reed. The check was received by Robin Vanderwall, then Director of Faith and Family Alliance, who claimed Reed called him and directed him to write a check for an equal amount to Century Strategies, Reed's political consultancy. "I was running a shell", Vanderwall later claimed. "I regret having had anything to do with it." Abramoff was working closely with
Tony Rudy Tony Charles Rudy (born May 3, 1966) is an American politician. He served in the office of U. S. Representative Tom DeLay ( R- TX) from approximately 1995 to 2001, and rose to be his deputy Chief of Staff. Rudy then began working with Jack Abramof ...
, then
Majority Whip A whip is an official of a political party whose task is to ensure party discipline in a legislature. This means ensuring that members of the party vote according to the party platform, rather than according to their own individual ideology ...
Tom DeLay Thomas Dale DeLay (; born April 8, 1947) is an American author and retired politician who served as a member of the United States House of Representatives, representing Texas's 22nd congressional district from 1985 until 2006. He was Republic ...
's
Chief of Staff The title chief of staff (or head of staff) identifies the leader of a complex organization such as the armed forces, institution, or body of persons and it also may identify a principal staff officer (PSO), who is the coordinator of the supporti ...
. In numerous emails, Rudy delivered inside information on the status of discussions of IGPA within the House Republican Caucus, and suggested strategies to defeat it. DeLay was normally a staunch opponent of gambling, but had not taken a position on the bill. Reverend Sheldon worked publicly to oppose the bill, holding numerous
press conferences A press conference or news conference is a media event in which notable individuals or organizations invite journalists to hear them speak and ask questions. Press conferences are often held by politicians, corporations, non-governmental org ...
. On July 13, 2000, Sheldon met privately with DeLay. DeLay later announced his opposition to the bill. While the bill was under consideration in the
House A house is a single-unit residential building. It may range in complexity from a rudimentary hut to a complex structure of wood, masonry, concrete or other material, outfitted with plumbing, electrical, and heating, ventilation, and air condi ...
, a letter began circulating among congressman opposing the legislation, signed by
Florida Governor The governor of Florida is the head of government of the state of Florida and the commander-in-chief of the state's military forces. The governor has a duty to enforce state laws and the power to either approve or veto bills passed by the Florida ...
Jeb Bush John Ellis "Jeb" Bush (born February 11, 1953) is an American politician and businessman who served as the 43rd governor of Florida from 1999 to 2007. Bush, who grew up in Houston, was the second son of former President George H. W. Bush a ...
. The letter caused confusion amongst the Republican Caucus, but was later shown to be a forgery. Abramoff's firm had hired Shandwick Worldwide, based in
Tampa, Florida Tampa () is a city on the Gulf Coast of the United States, Gulf Coast of the U.S. state of Florida. The city's borders include the north shore of Tampa Bay and the east shore of Old Tampa Bay. Tampa is the largest city in the Tampa Bay area and ...
to lobby Jeb Bush and other leaders for letters showing opposition to IGPA. Months later, a Florida man, Matthew Blair, told authorities in a
plea bargain A plea bargain (also plea agreement or plea deal) is an agreement in criminal law proceedings, whereby the prosecutor provides a concession to the defendant in exchange for a plea of guilt or '' nolo contendere.'' This may mean that the defendan ...
agreement that he was hired by Shandwick to obtain the letter, but created a forgery when he failed to get a real one. Shandwick denied any complicity in the forgery. DeLay voted against IGPA, and used his powers as Majority Whip to place the bill on the suspension calendar, a House procedural maneuver which bans amendments and limits debate. The bill's sponsor,
Robert Goodlatte Robert William Goodlatte (; born September 22, 1952) is an American politician, attorney, and lobbyist who served in the United States House of Representatives representing for 13 terms. A Republican, he was also the Chair of the House Judiciary ...
(R-VA) agreed, as he expected the bill to pass. The bill failed to meet the
two-thirds majority 2/3 may refer to: * A fraction with decimal value 0.6666... * A way to write the expression "2 ÷ 3" ("two divided by three") * 2nd Battalion, 3rd Marines of the United States Marine Corps * February 3 * March 2 Events Pre-1600 * 537 – ...
required by the suspension calendar, and was rejected on July 18. The bill's original supporters, such as
James Dobson James Clayton Dobson Jr. (born April 21, 1936) is an American evangelical Christian author, psychologist, and founder of Focus on the Family (FOTF), which he led from 1977 until 2010. In the 1980s he was ranked as one of the most influentia ...
's
Focus on the Family Focus on the Family (FOTF or FotF) is a fundamentalist Protestant organization founded in 1977 in Southern California by James Dobson, based in Colorado Springs, Colorado. The group is one of a number of evangelical parachurch organizations ...
, immediately demanded that the House leadership revive the bill. Abramoff realized that he would not be able to muster support to reject the bill in an ordinary
majority vote A majority, also called a simple majority or absolute majority to distinguish it from related terms, is more than half of the total.Dictionary definitions of ''majority'' aMerriam-Webster eed/nowiki> is using." Abramoff also directed eLottery to write a check for $25,000 to
Toward Tradition Daniel Lapin (born January 1, 1947) is an American Orthodox rabbi, author, and public speaker. xaminer om/article/rabbi-lapin-reveals-prosperity-secrets (URL blocked by Wikipedia) He was previously the founding rabbi of the Pacific Jewish Center ...
, a Seattle, Washington-based foundation formerly chaired by Abramoff, and then chaired by Rabbi
Daniel Lapin Daniel Lapin (born January 1, 1947) is an American Orthodox rabbi, author, and public speaker. xaminer om/article/rabbi-lapin-reveals-prosperity-secrets (URL blocked by Wikipedia) He was previously the founding rabbi of the Pacific Jewish Center ...
. Toward Tradition later employed Tony Rudy's wife, Lisa Rudy for work allegedly related to an Interfaith conference to be held in September 2000. Lapin claimed that Lisa Rudy's company, Liberty Consulting, was paid over $25,000 for "ground work" related to the conference. Toward Tradition also received $25,000 in funding from Abramoff's client Magazine Publishers of America. According to the MPA, this donation was given at the direction of another Preston Gates employee, not Abramoff. Tony Rudy had also aided Abramoff in lobbying Tom DeLay on a postal-rate increase opposed by the magazine publishers. The FBI interviewed Toward Tradition in 2005 regarding this apparent money laundering. Due to the campaigns manufactured by Reed and Sheldon, the targeted members reported to DeLay's office that they were being pressured by constituents to vote against the bill. Tony Rudy used his position as Chief of Staff to exaggerate these concerns in reports to Tom DeLay. DeLay eventually convinced other members of the House Republican leadership that passing the bill could cost the Republican caucus 4 seats, at which point the other leaders agreed not to put the bill to a vote in that session of Congress.


References


External links


"Ralph Reed's Other Cheek"
''
Mother Jones Mary G. Harris Jones (1837 (baptized) – November 30, 1930), known as Mother Jones from 1897 onwards, was an Irish-born American schoolteacher and dressmaker who became a prominent union organizer, community organizer, and activist. She h ...
'', Nov-Dec 2004 {{Jack Abramoff