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In June 1999, the U.S. Supreme Court struck down the advertising restriction
on the commercial casino industry in its decision in the case Greater New
Orleans Broadcast Association v. United States. Until then, the Communications
Act of 1934 had prohibited all television ads that showed gambling activity
by commercial casinos.
Before the ruling, commercial casinos had been allowed to promote only their
non-gaming resort features. The 9th U.S. Circuit Court had affirmed the
decision of a Nevada District Court overturning that portion of the federal
law in 1997. The 5th Circuit Court of Appeals, however, had upheld the ban.
The Supreme Court's decision overturned the ban nationwide, and cleared
up any inconsistency between the two lower court decisions.
Exceptions to the Communications Act of 1934
had been made over the years, allowing lotteries, horse and dog racing
and Indian casinos to advertise freely. Only commercial casinos were still
banned from showing gambling activity. As a result, the high court found
in favor of the Greater New Orleans Broadcast Association.
The issue of casino advertising was one followed not only by the gaming
industry itself, but also by the advertising industry and the media. Both
groups wanted the ban lifted, saying it violated First Amendment rights.
The American Gaming Association also voiced its opinion on the issue,
filing an amicus brief with the Supreme Court to address some of the social
cost arguments made by the U.S. Justice Department in support of the ban.
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