Most Utahns likely would say it is a sure bet that state officials would never legalize gambling. But international developments (and even some embryonic pressure at home) someday could make some gambling here legal -- and maybe already has.
Among those pressures are:
-- The World Trade Organization ruled in April that the United States cannot block other countries from offering Internet gambling to U.S. residents -- even if they live in Utah and Hawaii, where all forms of gambling are technically illegal. And now the state could face a new onslaught of Internet gaming and free trade litigation from Costa Rica if the Senate approves the Central American Free Trade Agreement (see related story on A1 and A11).
-- The U.S. House of Representatives passed provisions two years ago that would have allowed online betting from anywhere in the country on horse and dog racing, state lotteries and some other gambling conducted in states where they are legal. The proposal was later killed by the Senate. The Justice Department said that could have legalized such online gambling forms in Utah.
-- While still a small minority, 30 percent of Utahns say in a new Deseret Morning News/KSL-TV poll that they favor legalizing gambling here. Pollster Dan Jones also says he feels that support for legalization is growing, even though it is still unpopular now, overall. Legalization could keep in state what studies say is a quarter-billion dollars that Utahns wager in neighboring states each year.
A few Utah officials want to legalize gambling. For example, Stephen Perry, the mayor of Wendover, Utah, says he would like it there to help his city compete with adjacent West Wendover, Nev., which he says attracts most of the area's tourists, businesses and revenue to be near its casinos.
Also, as recently as 1992, the horse industry helped push a referendum toward legalizing pari-mutuel betting in Utah. The proposal actually led in early polls, but heavy opposition -- especially from The Church of Jesus Christ of Latter-day Saints -- eventually saw it lose by a 60 percent to 40 percent margin.
-- Bingo and poker clubs now operate widely in Utah, offering video gaming and other wagering similar to what is found in casinos. Utahns can easily lose, or win, hundreds of dollars quickly in such establishments. Owners claim loopholes in the law make their operations legal, although many prosecutors disagree.
Despite these and other pressures, most officials doubt that Utah lawmakers will ever legalize gambling themselves -- and expect that they would fight hard any moves to bring it to the state and would work to close any existing loopholes that make prosecution difficult.
"Certainly in the foreseeable future, I would have to say no, I don't see the Legislature ever legalizing any gambling," says State House Speaker Greg Curtis, R-Sandy.
State Senate President John Valentine, R-Orem, agrees -- but says he isn't surprised that the question is asked "because I have actually thought about it. That is because others have come to me and said, 'What about this?' (about such things as allowing gambling in Wendover, Utah). I said I would look into it. I did, and it would be a disaster. There is no such thing as allowing a little gambling - - it would likely end up allowing it all over the state."
Gambling's legal hurdles
Salt Lake County District Attorney David Yocom agrees that legalization is unlikely and notes two principal legal reasons.
"First, we have a (state) constitutional provision that prohibits gambling, meaning in order to legalize any form of gambling, we would have to go through a constitutional amendment process," which is difficult -- especially when 69 percent of Utahns surveyed oppose legalization, Yocom notes.
"The second problem is that if the state legalizes any form of gambling, then under the (federal) Indian Gaming Act (and Supreme Court decisions), Indian tribes in Utah would have the right to set up their own casinos," Yocom said.
Because of that, Curtis said, "Allowing any form of gambling -- like allowing a gaming district in Wendover -- would also open up gaming sites (by Indian tribes), possibly throughout the state. We don't want to do that." The U.S. Supreme Court has said the only way to prohibit Indian tribal gaming is to ban all gaming in a state.
Besides possibly allowing Indian gaming, Valentine added that research by his staff shows that allowing one form of gambling in Utah could cause problems with interstate commerce laws -- and possibly allow more forms of gaming here. He says it would add ammunition to countries like Antigua that have argued to the World Trade Organization that trade agreements already should force Internet gambling at its sites to be legal in Utah.
Still, Mayor Perry in Wendover laments that his city may die unless the Legislature someday allows a special gaming district there so it can compete with West Wendover. Congress, Utah and Nevada have also considered changing the Utah-Nevada boundary to allow Wendover and West Wendover to merge and thereby share the benefits and costs from gaming.
Politics and religion
Besides legal obstacles, intertwined political and religious hurdles likely would block any move toward legalization of gambling in Utah in the near future. The biggest among them is staunch opposition to gambling by the LDS Church.
The new Morning News poll shows legalizing gambling in Utah is favored by local Catholics (by a 72-38 margin), Protestants (52-48) and "not active" LDS members (65-32). But it is overwhelmingly opposed by "very active" LDS members (by a whopping 95-4 margin) and "somewhat active" LDS members (65-35).
LDS Church members far outnumber other religious groups in the state -- 69 percent of those polled identified themselves as LDS -- and political power comes with such big-majority numbers.
Also, LDS Church President Gordon B. Hinckley used a long address during the church's general conference in April to focus solely on opposition to gambling.
"In all too many cases this practice, which appears innocent, can lead to an actual addiction. The church has been and is now opposed to this practice. If you have never been involved in poker games or other forms of gambling, don't start. If you are involved, then quit now while you can do so," President Hinckley said.
Yocom said opposition from the church was perhaps solely responsible for killing the 1992 referendum on pari-mutuel betting, and he said LDS Church opposition would likely kill any similar sorts of moves in the future.
Tougher laws?
While no officials foresee legalizing gambling in Utah, they do say toughening laws may be likely.
Several prosecutors and police have said some of the existing laws are murky enough that it is difficult to prosecute bingo and poker clubs. For example, bingo hall owners claim their operations are legal because bingo is free with the food they sell (even if the food is overpriced). Poker clubs contend poker is a game of skill not chance, and that it is free after players pay entry fees to compete for prizes.
For example, Mike Junk, chief prosecuting attorney for Ogden, is among those who express concerns over whether current law really outlaws bingo halls from charging $25 for dinners that would cost $2 to $3 elsewhere but then allow "free" bingo with that food for up to $1,000 in cash prizes (and many people buy extra dinners for extra chances at winning).
"At this point we have allowed that," he says. "They (customers) are presented something of value for their money besides just a bingo card; at least it is some kind of dinner, even if it is a bit overpriced. . . . If a court in some other jurisdiction makes a ruling that it is gambling, then we will follow that and enforce it."
Senate President Valentine said he and some other legislators have already started reviewing whether to clarify the law and close some of the loopholes now used by bingo and poker clubs.
To more specifically outlaw selling food or other items of value to allow "free" bingo or poker with it, Valentine said some legislators are looking at language to ban "giving to another anything of value for the right or opportunity to participate in an event or to enhance the likelihood of winning an event" where cash or other items of value are awarded.
House Speaker Curtis says he sees the likelihood of gambling law reforms passing as good -- if police and prosecutors push them and suggest what clarifying language is needed.
"If the prosecutors and attorney general say laws are inadequate, I see the Legislature responding," he said.
Battles in Congress
Utahns, not surprisingly, have helped lead fights in Congress against moves they worry could trump state law and allow some forms of gambling into their state.
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For example, Rep. Chris Cannon, R-Utah, led the unsuccessful opposition in the House to the 2003 bill that could have allowed online gambling from anywhere in the nation on horse and dog racing, lotteries and jai alai in states where that is legal.
Ironically, that bill was designed to help stop online, off- shore casinos but contained exemptions for other sorts of online gambling. The Justice Department said it could have legalized those exempted forms in Utah, despite the state's ban on all gambling.
"It is my determination to protect Utah from the invasion of gambling from the outside, particularly from the Internet," Cannon told the House Judiciary Committee. It then stripped the offending provisions from the bill. But the full House later restored them and then passed the bill.
When the measure reached the Senate, Sen. Bob Bennett, R-Utah, led a successful effort to strip those loophole provisions in the Senate Banking Committee.
Sen. Jon Corzine, D-N.J., whose state allows casinos in Atlantic City, had considered attempting to amend the bill in that committee to restore the loopholes. "But we clearly had the votes in committee to defeat it, so he didn't offer it," Bennett said.
International tug-of-war
Utahns are also entering some international fights that could legalize -- and perhaps already have legalized-- gambling in their state despite local bans.
For example, Utah Attorney General Mark Shurtleff spearheaded a letter signed by 28 other state attorneys general this month to U.S. Trade Representative Rob Portman seeking a greater voice for states in trade talks. That comes after trade negotiators may have made deals that could require Utah to allow online gambling.
The World Trade Organization ruled in April in a case brought by the tiny island nation of Antigua that the United States cannot block other countries from offering Internet gambling to U.S. residents, even if potential players live in Utah and Hawaii, where all gambling is outlawed.
Antigua went to the WTO claiming America is in violation of a trade agreement where the United States had in 1993 signed off on cross-border supply of gambling and betting services. Utah's prohibition against gambling was a central part of Antiqua's argument.
With the WTO ruling, Utah could find itself legally defenseless to stop Internet gambling within its borders.
"Antigua has no business trying to write Utah's gambling laws," Shurtleff said when the attorneys general letter was released. "The trade representative needs to know that we have too much at stake to remain silent."
The attorneys general are urging Portman to withdraw gambling from the trade agreement because it could throw into chaos all gambling regulations pertaining to casinos, slot machines, state lotteries and Indian gaming rights.
Shurtleff wrote, "We believe that under our constitutional system of federalism, states should continue to have the flexibility and sovereign authority to determine whether and under what conditions gambling occurs within their borders, without such decisions being second-guessed by WTO tribunals."
If there is a silver lining to the WTO ruling, it is that a clerical error by attorneys for Antigua failed to spell out Utah's law in the legal paperwork. So the WTO refused to rule directly on the Utah law, even though it left open the possibility that Utah's prohibition could be wrapped into the larger WTO ruling.
The Office of the U.S. Trade Representative has assured states they can continue to regulate gambling through a "morals exception" in the WTO agreement. But that interpretation could also be subject to WTO challenge.
Changing values?
While opposition to gambling in Utah appears strong, pollster Jones, who conducts surveys for the Deseret Morning News and other organizations, suggests that such opposition may have weakened over time.
"Utahns have always opposed gambling, but a strong element would like to legalize it -- especially if it creates funds that go to education," he said.
While the new poll shows 30 percent of Utahns now favor legalization of gambling, Jones said he could find no poll that asked that same question in the past for comparison. However, from his years of polling, "I feel there is a strong move toward legalization. I wish I had exact percentages (to show the change), but I don't."
Also, the new poll suggests that a majority of Utahns actually believe gambling can be an acceptable activity -- at least for others, if not themselves.
The poll shows that a minority of Utahns -- 43 percent -- believe "gambling is an unacceptable activity because of its potential harms."
Among the majority that said it could be acceptable, 38 percent said "gambling is an acceptable form of entertainment that could present danger if not closely controlled personally," 11 percent said "it is acceptable for others but not for me," and 4 percent said gambling is a harmless form of entertainment."
Contributing: Jerry D. Spangler
E-mail: lee@desnews.com
Copyright C 2005 Deseret News Publishing Co.
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