Louisiana casinos lose Supreme Court challenge on political contribution ban

Monday, Feb. 24, 2003 | 11:03 a.m.

SUN WIRE REPORTS

WASHINGTON -- Casino operators in Louisiana today lost a free-speech challenge at the U.S. Supreme Court to a state law that bars them from making political campaign contributions.

The justices declined to hear the Casino Association of Louisiana's argument that the law violates their free-speech rights. The state says the law is intended to prevent corruption and that casino operators can be required to give up some rights. At least seven other states -- not including Nevada -- bar campaign contributions by gambling- related people or companies.

Louisiana's lawyers said the state has "endured a unique and tortured relationship with governmental corruption and gambling." Former Louisiana Gov. Edwin Edwards was convicted in 2000 of extorting money from businessmen seeking riverboat casino licenses.

Separately, Edwards lost his Supreme Court appeal today, four months after the 75-year-old one-time influential politician went to prison for extortion and racketeering.

Edwards is in a Fort Worth, Texas, federal prison serving a 10-year sentence. He also was fined $250,000 by U.S. District Judge Frank Polozola of Baton Rouge. In the contributions case, the casino owners said in court papers: "A political contribution is a symbolic act protected by the First Amendment."

The industry's "undeniably colorful history" doesn't justify limiting free-speech rights of companies and people who operate under heavy state regulation, their lawyers said.

The casino association's lawsuit was joined in lower courts by Las Vegas-based Harrah's Entertainment Inc., owner of the Harrah's New Orleans Casino, and by the Treasure Chest Casino in New Orleans, owned by Boyd Gaming Corp. of Las Vegas.

Louisiana legalized gambling during the early 1990s, allowing riverboat gambling, a land-based casino in New Orleans and video poker machines.

In 1996, lawmakers seeking to prevent corruption voted to bar gambling companies' owners and operators, key employees and their spouses from giving money to political candidates or committees that support candidates or ballot propositions. Such people are allowed to spend money independently to support or oppose political candidates.

The law affects fewer than 300 people associated with Louisiana's 15 riverboat casinos and the casino in New Orleans, the casino operators said.

While the video poker industry won a 1999 Louisiana Supreme Court decision declaring the law unconstitutional as applied to that industry, the state's highest court last June ruled against a similar challenge by the casino operators.

The Louisiana Supreme Court said the law was a valid attempt to prevent corruption, saying gambling was historically considered a "vice activity."

In the appeal to the Supreme Court, the casino owners' lawyers said the industry is heavily regulated and the state never showed that campaign contributions by people involved in casinos were connected to corruption.

In the Edwards case, the justices also rejected without comment an appeal by Edwards' son, Stephen, who was convicted along with his father in a scheme to rig Louisiana's riverboat casino licensing process while Edwards was governor.

Stephen Edwards is serving a seven-year sentence. He also was fined $60,000.

One of the former governor's lawyers, Nathan Dershowitz, argued that the trial was tainted because of the dismissal of a juror after deliberations began, the use of an anonymous jury and questions about the legality of wiretaps used to gather evidence.

The government didn't respond to the claims.

The National Association of Criminal Defense Lawyers had urged the court to review the appeal.

Edwin Edwards was a congressman from 1965-72, then served four terms as governor between 1972 and 1996. He built a reputation as a deft, and colorful, politician who survived repeated federal investigations.

He was acquitted in two trials but convicted in 2000 of extorting hundreds of thousands of dollars from business people applying for riverboat casino licenses.

Also today, the Supreme Court refused to hear the appeal of businessman Bobby Johnson, who also was convicted in the riverboat scheme. Johnson was sentenced to 5 1/2 years in prison and fined $50,000.