To help the Supreme Court better understand the stakes of this critical case, Stop Predatory Gambling assembled a broad and diverse coalition to file an amicus brief demonstrating the law’s constitutionality and highlighting how state-sanctioned gambling has been a spectacular failure. The brief explains how state-sanctioned gambling uses unfair and deceptive marketing practices to target and prey on the financially desperate and the addicted; reduces opportunity for millions of American families to improve their economic standing; and forces even those citizens who rarely or never gamble to foot the bill for the enormous social costs and state budget problems it leaves behind.
Legal Opinion
Lottery Advertising: The Pathology of Hope
Respected gambling researcher Robert Goodman has called lottery advertising “the pathology of hope” and state lotteries, because of their exemption from truth-in-advertising laws, fully exploit this pathology.
Most industries and companies are subject to truth-in-advertising laws enforced by the Federal Trade Commission. According to these laws, advertising must be truthful and non-deceptive, advertisers must have evidence to back up their claims, and advertisements cannot be unfair. Since 1974, the U.S. Congress has exempted state-run lotteries from these laws. Because of this, governments and lotteries have wide latitude in how they can promote their product, exaggerate chances of winning, and encourage more of our fellow citizens to lose their money instead of saving or investing. All federal laws relative to the lottery can be found in Title 18 of the U.S. Code, Sections 1301 to 1307. The final section, 1307, outlines the lottery’s exemption from truth-in-advertising laws.
These predatory and deceptive practices can be found in the media plans of the lotteries. Ohio’s Super Lotto media plan, for example, stated that lottery promotions should be timed to coincide with the receipt of government benefits, payroll and Social Security payments.
Leading public health law organization spotlights casinos and how they compare to tobacco companies
Below is the must-read amicus brief filed with Massachusetts Supreme Judicial Court in Spring 2014 by the prestigious Public Health Advocacy Institute at Northeastern School of Law, substantiating the very serious public health aspects of state sponsorship of commercial gambling and how it is comparable to efforts by tobacco companies to profit from a “toxic” product. PHAI’s President is Richard Daynard, considered by many scholars as the key legal strategist behind the transformative litigation efforts against tobacco companies in the 1980’s & 1990’s. Here’s the New York Times profile of him before he prevailed.
KY Supreme Court rules in Instant Racing case
In a unanimous opinion, the Kentucky Supreme Court ruled Thursday that the Kentucky Horse Racing Commission has the legal authority to regulate wagers on previously run horse races presented on electronic gambling machines, called “instant racing machines” — but that the legality of the wagers themselves has yet to be established. These machines are similar to slots in a regular casino, but are often found at race tracks. The court said the case must go back to Franklin Circuit Court, where it originated, to determine whether this is a legal form of gambling. Below is a copy of the majority opinion in the case.
KY Opinion Affirming and Reversing Instant Racing Machines
In addition, below is a copy of the oral arguments in the case. Both pieces are great to read if you want to learn more about Instant Racing Machines.
FBI Letter on the Threats Posed By Internet Gambling
Below is a 2009 letter from the F.B.I.’s Cyber Division with responses to questions about internet gambling from the Ranking Member of the House Financial Services Committee. The letter includes statements that technology currently exists to both manipulate online gambling and to illicitly launder money through online gambling. Serious questions are also raised about the claims that online vendors could accurately validate the age of players.
Instant Racing Machines Are Just Slots By Another Name
To circumvent existing state gambling laws, gambling interests are pushing “Instant Racing Machines” or what are also called “Historic Racing Machines.” They are simply just slots by another name. The short brief below includes an excerpt from a recent Wyoming Supreme Court decision opposing the machines.