A CASINO IN EVERY SMARTPHONE: LAW ENFORCEMENT IMPLICATIONS HEARING BEFORE THE COMMITTEE ON OVERSIGHT AND GOVERNMENT REFORM HOUSE OF REPRESENTATIVES ONE HUNDRED FOURTEENTH CONGRESS FIRST SESSION DECEMBER 9, 2015 Serial No. 114–130 Printed for the use of the Committee on Oversight and Government Reform ( Available via the World Wide Web: http://www.fdsys.gov http://www.house.gov/reform U.S. GOVERNMENT PUBLISHING OFFICE 25–428 PDF WASHINGTON : 2017 For sale by the Superintendent of Documents, U.S. Government Publishing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2104 Mail: Stop IDCC, Washington, DC 20402–0001 VerDate Nov 24 2008 13:25 Jun 23, 2017 Jkt 000000 PO 00000 Frm 00001 Fmt 5011 Sfmt 5011 H:\25428.TXT APRIL KING-6430 with DISTILLER COMMITTEE ON OVERSIGHT AND GOVERNMENT REFORM JASON CHAFFETZ, Utah, Chairman JOHN L. MICA, Florida ELIJAH E. CUMMINGS, Maryland, Ranking MICHAEL R. TURNER, Ohio Minority Member JOHN J. DUNCAN, JR., Tennessee CAROLYN B. MALONEY, New York JIM JORDAN, Ohio ELEANOR HOLMES NORTON, District of TIM WALBERG, Michigan Columbia JUSTIN AMASH, Michigan WM. LACY CLAY, Missouri PAUL A. GOSAR, Arizona STEPHEN F. LYNCH, Massachusetts SCOTT DESJARLAIS, Tennessee JIM COOPER, Tennessee TREY GOWDY, South Carolina GERALD E. CONNOLLY, Virginia BLAKE FARENTHOLD, Texas MATT CARTWRIGHT, Pennsylvania CYNTHIA M. LUMMIS, Wyoming TAMMY DUCKWORTH, Illinois THOMAS MASSIE, Kentucky ROBIN L. KELLY, Illinois MARK MEADOWS, North Carolina BRENDA L. LAWRENCE, Michigan RON DESANTIS, Florida TED LIEU, California MICK MULVANEY, South Carolina BONNIE WATSON COLEMAN, New Jersey KEN BUCK, Colorado STACEY E. PLASKETT, Virgin Islands MARK WALKER, North Carolina MARK DESAULNIER, California ROD BLUM, Iowa BRENDAN F. BOYLE, Pennsylvania JODY B. HICE, Georgia PETER WELCH, Vermont STEVE RUSSELL, Oklahoma MICHELLE LUJAN GRISHAM, New Mexico EARL L. ‘‘BUDDY’’ CARTER, Georgia GLENN GROTHMAN, Wisconsin WILL HURD, Texas GARY J. PALMER, Alabama SEAN MCLAUGHLIN, Staff Director DAVID RAPALLO, Minority Staff Director TROY STOCK, IT Subcommittee Staff Director SHARON CASEY, Deputy Chief Clerk (II) VerDate Nov 24 2008 13:25 Jun 23, 2017 Jkt 000000 PO 00000 Frm 00002 Fmt 5904 Sfmt 5904 H:\25428.TXT APRIL KING-6430 with DISTILLER C O N T E N T S Page Hearing held on December 9, 2015 ........................................................................ 1 WITNESSES Mr. Joseph S. Campbell, Assistant Director, Criminal Investigative Division, Federal Bureau of Investigation Oral Statement ................................................................................................. 7 Written Statement ............................................................................................ 9 The Hon. Alan M. Wilson, Attorney General, South Carolina Oral Statement ................................................................................................. 12 Written Statement ............................................................................................ 14 The Hon. Donald W. Kleine, Douglas County Attorney, Nebraska Oral Statement ................................................................................................. 19 Written Statement ............................................................................................ 21 The Hon. Mark Lipparelli, Senate of Nevada Oral Statement ................................................................................................. 23 Written Statement ............................................................................................ 26 APPENDIX 1. Letters Submitted by Mr. Chaffetz: 2015–12–07 8 State AGs to Goodlatte Grassley Conyers Leahy - Wire Act ....... 66 2015–12–07 Laxalt-NV AG to Goodlatte Grassley Conyers Leahy - Wire Act ... 69 2014–02–04 16 State AGs to Goodlatte Grassley Conyers Leahy - Wire Act ..... 73 2013–09–20 Johnson-DOJ to Rep Young - Money Laundering Via Online Gambling ............................................................................................................... 76 2009–11–13 Henry-DOJ to Rep Bachus - Internet Gambling .............................. 78 2015–12–08 Gov Hutchinson-AR to JEC - Wire Act ............................................. 81 2015–03–19 Gov Herbert-UT to JEC - Wire Act ................................................... 84 2014–04–22 Gov Scott-FL to Goodlatte Grassley Conyers Leahy - Wire Act ..... 85 2014–03–24 Gov Haley-SC to Goodlatte Grassley Conyers Leahy - Wire Act ... 88 2014–03–24 Gov Perry-TX to Goodlatte Grassley Conyers Leahy - Wire Act .... 90 2014–05–01 Gov Pence-IN to IN Delegation - Wire Act ....................................... 92 2015–12–07 Rep Holding to JEC - Internet Gambling ......................................... 93 2014–06–27 Christensen-FRC to Rep - Wire Act .................................................. 95 2014–08–14 Newsweek - How Washington Opened Floodgates to Online Poker ..................................................................................................................... 97 2014–03–26 Thirty-Seven Groups to Goodlatte Grassley Conyers Leahy - Wire Act ......................................................................................................................... 105 2. 2007–07–06 Washington Post ‘‘Three Worked the Web to Help Terrorists’’ .. 109 3. 2015–10–28 Canterbury-FOP to JEC EEC - Oppose Wire Act ........................ 112 4. Letters Submitted by Mr. Clay: ......................................................................... 2013–07–17 Norquist-AFTR to McCaskill Heller - ‘‘Expansion of Internet Gambling’’ ............................................................................................................. 114 2014–03–10 The Hill ‘‘Congressional Ban On All Online Gaming Is Wrong For America .......................................................................................................... 116 2014–03–29 Townhall ‘‘Congress Should Reject Adelson’s Crony Power Play ... 117 2014–03–31 Gale-NASPL to Graham - Wire Act .................................................. 118 2014–04–01 Reason ‘‘Tortured Textualism and Faux Federalism of the Chaffetz-Graham-Adelson Online Gambling Ban’’ ............................................ 119 2014–04–03 Starr Smith-NCSL to Reid McConnell Boehner Pelosi - Wire Act ......................................................................................................................... 120 2014–04–09 Keeley-NCLGS to Goodlatte Grassley Conyers Leahy - Wire Act .. 121 (III) VerDate Nov 24 2008 13:25 Jun 23, 2017 Jkt 000000 PO 00000 Frm 00003 Fmt 5904 Sfmt 5904 H:\25428.TXT APRIL KING-6430 with DISTILLER IV Page 2014–05–09 Govs Bentley Tomblin NGA to Reid McConnell Boehner Pelosi - Oppose Online Gaming Ban ............................................................................. 123 2014–04–28 Thirty-Seven Orgs to Goodlatte Grassley Conyers Leahy - Wire Act ......................................................................................................................... 124 2014–05–13 WiredSafety ‘‘Cyber-safety Charity Wired Safety Supports Online Gaming Regulation’’ ............................................................................................. 126 2014–09–00 LV Center for Gaming Research ‘‘The Original Intent of the Wire Act’’ ........................................................................................................................ 127 2014–11–16 Ron Paul Institute ‘Internet Gambling Ban’ .................................... 139 2014–12–02 Canterbury-FOP to Reid McConnell Boehner Pelosi - Wire Act .... 140 2014–12–08 Members to Boehner - Wire Act ........................................................ 142 2014–12–09 Polis Cohen to Appropriations - Online Gaming ............................. 144 2014–12–15 Cullerton-IL State Senate to 16 Members - Wire Act ..................... 146 2015–03–03 Pennsylvania Hr 140 - Wire Act ....................................................... 162 2015–03–03 Washington Examiner ‘‘Republicans Take Up Casino Donor’s Fight Against Internet Gambling ....................................................................... 164 2015–03–04 RedState ‘‘Stacking the Deck in Fight Over Online Gambling Ban’’ ....................................................................................................................... 166 2015–03–12 Gleason-KY Lottery to McConnell - Wire Act .................................. 168 2015–03–17 Govs Bullock Hassan DGA to Reid McConnell Boehner Pelosi - Wire Act .............................................................................................................. 170 2015–03–18 Roll Call ‘‘Wire Act - Don’t Fix What Isn’t Broken .......................... 173 2015–05–21 Roll Call ‘‘Regulatory Oversight of Online Gaming in the States Is Working’’ ........................................................................................................... 175 2015–06–16 Rep Pretlow-NY to NY Delegation - Wire Act ................................. 176 2015–09–10 US News - Ron Paul ‘‘A Bad Bet For Republicans’’ ......................... 178 2015–12–04 Brnovich-AZ AG to EEC - Oppose Wire Act support state control 180 2015–12–07 The Hill ‘‘Apply 10th Amendment to Online Gambling’’ ................. 182 2015–12–08 Nower-Rutgers to Watson-Coleman - NJ Online Gambling ........... 184 2015–12–08 Rebuck-NJ AGO - NJ Online Gambling ........................................... 186 5. RESPONSE from Mr. Campbell FBI to Questions For The