Tuesday, March 11, 1997 | 11:59 a.m.
The action comes in the wake of a federal appeals court ruling last week in a suit by Nevada television stations that the government's longstanding ban on broadcast advertising of casino gambling is unconstitutional.
"This means that gaming advertising is protected commercial speech," NJBA Executive Director Phil Roberts said Wednesday from Washington, D.C., where he was meeting with lawmakers about the issue.
Roberts said the NJBA, based in Cranbury, immediately asked for "limited forbearance" upon learning of the ruling.
Limited forbearance would grant broadcasting stations in New Jersey the ability to run casino gaming advertising until the issue is resolved by the Supreme Court, Roberts said.
Casinos currently may advertise hotel facilities, such as restaurants, room amenities or entertainment but not specific games or payout percentages.
The NJBA asked for forbearance last year, but the FCC denied the request, Roberts said.
The 9th U.S. Circuit Court of Appeals in San Francisco which includes Nevada, California, Oregon, Washington and Hawaii, agreed with a federal judge's 1992 ruling that the ban, a federal law since 1934, violates broadcasters' freedom of speech.
Advertising restrictions could be justified by government concerns about curbing casino gambling, the court said. But it noted the federal ban is riddled with exceptions - for lotteries run by the state, nonprofits and some other organizations and for Indian casinos.
Roberts said he expects substantial increases in revenue to broadcasters if permission is granted to disregard the ban, citing a similar situation in Nevada when advertising sales totaled nearly $100 million when broadcasters there were granted forbearance three years ago.
Joan Gerberding, executive vice president of Nassau Broadcasting Partners, which owns 15 New Jersey radio stations, said she looks forward to gaining additional revenue from the ads.
"It's a truly significant amount of money over the years," Gerberding said. "We're the state who supports gambling and aren't allowed to run gaming ads."
Michael DiLeva, director of public affairs of Harrah's Atlantic City, agreed.
"We're a legitimate business. We're traded on the New York Stock Exchange. We're heavily regulated. We're responsible corporate citizens. But despite all this, we're not allowed to advertise our core entertainment offering, which is casino gaming, in broadcast media," DiLeva said, adding that 90 percent of Harrah's revenue comes from gaming.
But Ed Looney, executive director of the Council on Compulsive Gambling of New Jersey, criticized the move, stressing that certain games such as video poker and off-track betting are particularly appealing to problem gamblers. Pushing them through the media would only increase their power and potential for abuse.
"(Permission to run ads) should come after we have certain things in place like education. Then we could have as much gambling as we want. They've done that with cigarettes and alcohol but not gambling." Looney said.
A member of Gamblers Anonymous and a volunteer for a gambling addiction hotline who identified himself as Nick D. said gaming advertising should remain regulated.
"The way they sensationalize casino ads, it's too appealing to people on fixed incomes and the young," he said.
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