Legal Document

527 U.S. 173119 S.Ct. 1923144 L.Ed.2d 161 SUPREME COURT OF THE UNITED STATES No. 98 387 GREATER NEW ORLEANS BROADCASTING ASSOCIATION, INC., etc., et al., PETITIONERSv.UNITED al. ON WRIT CERTIORARI TO APPEALSFOR FIFTH CIRCUIT [June 14, 1999] Justice Stevens delivered the opinion of Court. 1 Federal law prohibits some, but by no means all, broadcast advertising lotteries and casino gambling. In United States v. Edge Broadcasting Co., 509 418 (1993), we upheld constitutionality 18 U.S.C. § 1304 as applied to Virginia's lottery a radio station located in North Carolina, where such was authorized. Today hold that §1304 may not be advertisements private gambling are or television stations Louisiana, is legal. 2 * Through most 19th first half 20th centuries, Congress adhered policy only discouraged operation similar schemes, forbade dissemination information concerning enterprises use mails, even when question chartered state legislature.1 Consistent with this Court's earlier view commercial unprotected First Amendment, see Valentine Chrestensen, 316 52, 54 (1942), found notion "lotteries supposed have demoralizing influence upon people" provided sufficient justification for excluding circulars from federal postal system. Ex parte Jackson, 96 727, 736 737 (1878). We likewise deferred congressional judgment upholding exclusion newspapers contained either prize lists. re Rapier, 143 110, 134 135 (1892); generally Edge, U.S., at 421 422; Lottery Case, 188 321 (1903). The current versions these early antilottery statutes now codified 1301 1303. 3 extended its restrictions on lottery-related broadcasting communications technology made practice both possible profitable. It enacted statute issue case §316 Communications Act 1934, 48 Stat. 1088. Now ("Broadcasting information"), broadcasting, any which license required, 4 "any advertisement lottery, gift enterprise, scheme, offering prizes dependent whole part lot chance, list drawn awarded whether said contains all prizes." 5 provides each day's prohibited constitutes separate offense punishable fine, imprisonment more than one year, both. Ibid. Although criminal statute, Solicitor General informs us that, practice, provision traditionally has been enforced Commission (FCC), imposes administrative sanctions licensees violations agency's implementing regulation. See 47 CFR 73.1211 (1998); Brief Respondents 3. Petitioners concede ban FCC's regulation encompasses privately owned casinos concession supported broad language our precedent, sound interpretation. FCC American 347 284, 290 291, n. 8 (1954). 6 During second century, dramatically narrowed scope prohibition §1304. inroad minor: 1950, certain not-for-profit fishing contests were exempted "innocent pastimes far removed reprehensible type activity it paramount mind forbid." S. Rep. 2243, 81st Cong., 2d Sess., p. (1950); Aug. 16, ch. 722, 64 451, 1305. 7 Subsequent exemptions substantial. Responding growing popularity State-run lotteries, 1975 gave rise decision Edge. 422 423; Jan. 2, 1975, 88 1916, 1307; also §1953(b)(4). With subsequent modifications, amendment exempts State-conducted nationwide §§1301 1302, restriction §1304, "broadcast licensed location State conducts lottery." §1307(a)(1)(B); §§1307(a)(1)(A), (b)(1). remained place, however, do conduct lotteries. held remaining broadcasts nonlottery States, "laws against gambling" those jurisdictions properly advanced "congressional balancing interests States." 428. 1988, two additional significantly curtailed coverage First, Indian Gaming Regulatory (IGRA), 25 2701 seq., authorized Native tribes various forms including pursuant tribal-State compacts if permits "for purpose person, organization, entity." §2710(d)(1)(B). IGRA gaming conducted an tribe to" transportation 2720. Second, Charity Games Advertising Clarification 1307(a)(2), exemption state-run include other scheme operates by: (i) governmental organization; (ii) (iii) organization promotional "clearly occasional ancillary primary business organization." There dispute §1307(a)(2) applies local governments. And, unlike 1988 geographically limited; they shield messages §1304's reach authorize well do. 9 A 1992 Professional Amateur Sports Protection Act, 28 3701 proscribes sports betting thereof. Section 3702 makes unlawful "to sponsor, operate, advertise, promote, license, compact" person based directly indirectly competitive games amateur professional athletes participate. However, includes variety exemptions, some obscured purposes: schemes entities time between January 1, 1976, August 31, 1990; effect October 1991; "conducted exclusively casinos" municipalities within year effective date and, "commercial scheme[s]," had preceding ten years constitutional comprehensive applicable municipality; (iv) parimutuel animal racing jai-alai games. §3704(a); 1953(b)(1) (3) (regarding interstate wagering paraphernalia). These make §3702's somewhat unclear, limited media does depend disseminator materials. 10 Thus, uniform antigambling prevailed 1934 enacted, accommodate pro-gambling segments national polity. II 11 association Louisiana broadcasters members who operate FCC-licensed New Orleans metropolitan area. But threat companion regulation, petitioners would available private, for-profit lawful regulated neighboring Mississippi.2 According official, "[u]nder appropriate conditions, signals heard states Texas Arkansas," Record 628, unlawful. 12 brought action District Court Eastern praying declaration violate Amendment them, injunction preventing enforcement rule them. After noting parties agreed should decided their cross-motions summary judgment, ruled favor Government. 866 F. Supp. 975, 976 (1994). standard assessing speech set out Central Hudson Gas & Elec. Corp. Public Serv. Comm'n N. Y., 447 557, 566 (1980), concluded adequately Government's "substantial interest (1) protecting (2) reducing participation thereby minimizing social costs associated therewith." Supp., 979. pointed prohibit about casinos, promotes casino's amenities rather "gaming aspects," observed state-authorized Mississippi actually "abundant." Id., 980. 13 divided panel Appeals Fifth Circuit application Hudson, affirmed grant 69 F.3d 1296, 1298 (1995). majority's description asserted interests, although specific, essentially same Court's: 14 "First, section serves assisting restrict regulating activities beyond powers individual regulate. lies discouraging public gambling, wide ills historically activities." 1299. 15 majority relied heavily Posadas de Puerto Rico Associates Tourism Co. P. R., 478 328 (1986), F.3d, 1300 endorsed theory because category "vice activity" can banned altogether, "advertising lay greater claim protection underlying activity," id., 1302. dissent, Chief Judge Politz contended many exceptions original section's conflict policies legalized precluded supporting anticasino "an independent gambling." 1303 1304. 16 While broadcasters' petition certiorari pending Court, 44 Liquormart, Inc. Rhode Island, 517 484 (1996). Because opinions precedent following test strictly, 510 (opinion Stevens, J.); 531 532 (O'Connor, J., concurring judgment) rejected argument power socially harmful conduct, 513 514 Rubin Coors Brewing 476, 482 483, (1995) granted petition, vacated Appeals, remanded further consideration. 519 801 17 On remand, prior conclusion. 149 334 (1998). recognized least inquiry "become tougher satisfy," 338, sufficiently "broader necessary control gambling," 340. Ninth reached contrary conclusion Valley 107 1328, cert. denied, 522 1115 (1998), did Players Int'l, 988 497 (DNJ 1997), again certiorari. 525 __ (1999). reverse. III number cases involving "commercial" nature, employed Hudson's four-part resolve challenges: 19 "At outset, must determine expression protected Amendment. For come provision, concern misleading. Next, ask If inquiries yield positive answers, advances asserted, extensive serve interest." 566. 20 analysis, Government bears burden identifying substantial justifying challenged restriction. Edenfield Fane, 507 761, 770 (1993); Board Trustees Univ. Y. Fox, 492 469, 480 (1989); Bolger Youngs Drug Products Corp., 463 60, 71, (1983). 21 four parts entirely discrete. All important extent, interrelated: Each raises relevant dispositive inquiry, answer inform three. Partly intricacies, judges, scholars, amici curiae advocated repudiation implementation straightforward stringent validity speech.3 As Liquormart demonstrate, reasonable judges disagree merits proposals. is, established jurisprudence ordinarily novel unnecessarily pronouncements issues fully resolved narrower ground. Raines, 362 17, (1960). case, there need break new recent cases, adequate basis decision. IV 22 agree wish constitute speech, satisfy test: Their content misleading concerns activities, i.e., Mississippi. well, proposed convey taken favorably unfavorably audience subject intense debate communities. addition, petitioners' presumably disseminate accurate market competitors, pay-out ratios, benefit listeners informing consumption choices fostering price competition. conveying pecuniary, of, to, broader. Virginia Bd. Pharmacy Citizens Consumer Council, Inc., 425 748, 764 765 (1976); Linmark Associates, Willingboro, 431 85, 97 (1977); Bigelow Virginia, U. S 809, 822 (1975). 23 asks served identifies interests: "gambling" "casino "restrict "prohibit own borders.4 Underlying Congress' statutory contends, contributes corruption organized crime; underwrites bribery, narcotics trafficking, illegal conduct; regressive tax poor; "offers false sometimes irresistible hope financial advancement." 16. respect stem "pathological" "compulsive" approximately million Americans, whose behavior primarily "continuous play" games, slot machines. He observes compulsive grown along expansion nationwide, leading billions dollars economic costs; injury loss gamblers families, communities, government; street, white-collar, crime. 20. 24 accept characterization "substantial," self-evident. No seriously doubts assert legitimate alleviating societal recited above, like-minded same. Cf. legislatures, support suppression offset, outweighed, countervailing considerations, form benefits.5 Despite awareness potential costs, sanctioned through tribal-state compacts, reflect approval legislation authorizes host activities. See, e.g., 1307 1953(b); 2702, 2710(d); 3704(a). That reflects defer differing different States. Indeed, identified furthered partial Whatever character adopted, general, particular, decidedly equivocal. Of course, function weigh arguments side over what extent legalized. Moreover, "governmental interests" necessarily equivalents purposes analysis. Bolger, 70 71. cannot ignore unwillingness adopt single consistently endorses General. Edenfield, 768; judgment). Even though consider quality sought suppressed, crosscurrents become difficult defend. V 26 third materially interest. "This satisfied mere speculation conjecture; rather, body seeking sustain demonstrate harms recites real will fact alleviate them material degree." 771. Consequently, "the sustained ineffective remote government's purpose." 564. "this requirement critical; otherwise, 'a could ease service objectives themselves justify expression.' " Rubin, 487, quoting 27 fourth complements direct-advancement third, asking it. required employ restrictive conceivable, narrow tailoring "a fit perfect, reasonable; represents best disposition proportion served." (internal quotation marks omitted); 529, whole, then, indicate proponent 'carefully calculated' benefits imposed prohibition." Cincinnati Discovery Network, 410, 417 480. standards. regard limiting demand contends advance "promotional" increases turn amount produces costs. Additionally, believes especially susceptible pervasiveness potency advertising. 33 36. Assuming accuracy causal chain, follow doubt fair assume impact overall much merely channel another. More important, measure effectiveness attempt minimize simultaneous encouragement tribal rate exceeding increase produce. 5, supra. recognized, fails "connect let alone non-Indian casinos. 339.6 29 lack evidence record proof under flaw fundamental: attendant regulatory regime so pierced inconsistencies exonerate 488. Under law, broadcaster carry operated regardless casino. 1304; 73.1211(a) hand, party management contract ban, jurisdiction strictest policies. Government-operated, nonprofit, "occasional ancillary" exempt. 1307(a)(2). 30 interpretation §§1304 underscore statute's infirmity. Attempting enforce permitted tempt viewers claims "Vegas-style excitement" "casino," "casino" establishment's proper name refer amenities, promote aspects.7 hardly fault focus types information, squarely odds case. 31 From gather, committed prohibiting product enticements kinds, then conveyed indeed, brands despite availability being airwaves speakers. 32 putting aside arguably distinguishable sorts might give concerned horse dog races, 3704(a) presents convincing reason pegging identity owners operators advertised cites revenue needs notes net revenues generated dedicated welfare members. 2710(b)(2)(B), (d)(1)(A)(ii), (2)(A). Yet admits offer precisely Further, maintain government-operated different, derive taxing class likely advertise meaningfully distinct manner others. suggestion too isolated warrant attention belied quick review geography regarding success gaming. distance determinative, Las Vegas relatively small community, simply disappeared like desert mirage. Ironically, significant difference classes former "heavily regulated." 38. direct believing mitigated tolerable, thought experimented comparable before abridging rights federally unregulated failure institute compromise undermine justifications us. 490 491. surely practical nonspeech-related supervision credit; limitations cash machines premises; controls admissions; pot limits; restrictions; licensing requirements effectively 34 Rubin. There, considered conflicting so-called "strength wars" among competing sellers alcoholic beverages. evaluated context entire isolation, invalidated "overall irrationality scheme." "little chance" aim, "while provisions undermine[d] counteract[ed] effects." 489. Coupled options "in less intrusive [petitioners'] rights," test. 35 Given special California Cabazon Band Mission Indians, 202, 216 217 (1987), recognize valid reasons imposing regulations businesses differ enterprises. follow, differences non-Indians' freedom severely competitors. regulate particular conduct. 511 judgment); 2. settled mandates closer scrutiny government commerce alone. 408. And distinguishes tribal, governmental, operators, why lines bear meaningful relationship asserted: way (partial) ban. 424, degree decisions select speakers virtually identical serious tension principles undergirding Carey Brown, 455, 465 (1980); Nat. Bank Boston Bellotti, 435 765, 777, 784 785 (1978). 36 derivative goal "assisting" disfavor adds little how restraint, ambivalent dampening consumer achieve 37 Furthermore, assuming seeks embellish coherent pressing counterpart, sacrifices intolerable truthful compared stake reasonably eliminate. argues because, "under conditions," citizens Arkansas (which hosts gambling) hear rash costly decisions. To sure, order broader objective incidentally, deliberately, contribute dangers concerned. 480; cf. 429 430.8 choice here neither rough approximation efficacy, nor accommodation interests. Rather, indistinct, permitting poses risks purports fear, while banning unlikely cause harm all. Considering proscribes, first. VI 38 Accordingly, respondents overcome presumption speaker audience, Government, left assess value nonmisleading 767. Had adopted policy, accommodated 428, convey, (1998) violates therefore 39 Reversed. Notes 40 1. Mar. 1895, 963 (prohibiting foreign commerce, mailing tickets enterprises); 1827, §6, 238 (restricting postmasters assistant business); July 27, 1868, §13, 196 letters 12, 1876, §2, 90 (repealing 1872 limitation mails "illegal" lotteries); Anti-Lottery 1890, §1, (extending containing lists enterprises). 41 La. Rev. Ann. §§27:2, 27:15B(1), 27:42 27:43, 27:44(4), 27:44(10) 27:44(12) (1999); Miss. Code §§75 76 3, (1972); §§27:202B 27:202D, 27:205(4), 27:205(12) 27:205(14), 27:210B 42 Pet. Cert. 23; 10; Reply 20; 484, 526 528 (1996) (Thomas, concurring); Kozinski Banner, Who's Afraid Commercial Speech?, Va. L. 627 (1990); Association National Advertisers, Amicus Curiae 4; Federation 43 4. 15, 28. concentrate contentions gambling": They closely linked issue, providing messages. 5. Some legal nearly every State. Lodging 192. Thirty-seven Columbia Ibid.; Gambling Impact Study Commission, Staff Report: Lotteries 1997, existed Report Int'l Wagering Bus., pp. S4 S31, state-sponsored video Del. Title 29, §§4801, 4803(f) (g), 4820 (1974 1997); Ore. §461.215 R. I. Gen. Laws §42 61.2 2(a) D. Const. Art. III, §25 Codified §§42 7A 4(4), (11A) (1991); W. §29 22A Also Union hosted Class encompass gambling), Mississippi, Accounting Office, Casino Regulation: Roles Five (May 1998) (including five without approved compacts); (1999) (hereinafter Gaming) (noting on-reservation States). One count Bureau Affairs tallied 60 radio. 408, 437. By mid-1990's, casino-style $3 billion increasing share 18% revenue, matching total Atlantic City, Jersey, reaching figure Nevada's 2; 407, 423 429. 45 6. several secondary sources declarations put Jersey alternative affirming below, requests remand another chance build Circuit. Remand inappropriate reasons. ample opportunity enter materials after Circuit's ruling reconsideration light Liquormart. convince court constitutionally circumstances 497, 502 503, 506 (1997), cited litigation presented Circuit, Supplemental Appellees 94 30732 (CA5), iv proffered. event, shall explain, factual assertions currently effect. 46 7. Letter DR Partners, C. Rec. (1992); WTMJ, 4354 (1993) (disapproving phrase "Vegas style games"); 493, 498 (Mass Media letter Forbes Blair, Apr. 10, 1987) (concluding stating "odds fun high" sponsor's establishment lawful); 492, 500 501. 8. stated "applying [respondent] enforcing interfering . [W]e judge relation general problem accommodating 430. points hypothesized "might have" fast consistent continuing dictum passage, actual stake; endorse bans related explained, "Instead favoring State, opted both; "[t]his States" satisfie[d] Hudson." Rehnquist, concurring. 49 regulates I "[t]he inconsistencies," ante, But, observes: 50 "There non-speech-related Ante, 18. 51 Were undertake substantive industry, advertisements, "exemptions inconsistencies" prove tolerable. "The legislative classification perennial one, admitting doctrinaire definition. Evils field dimensions proportions, requiring remedies. Or legislature think. reform take step time, addressing itself phase seems acute mind. apply remedy there, neglecting others." Williamson Lee Optical Okla., 348 489 (1955) (citations omitted). 52 demanding review. met join opinion. Thomas, 53 judgment. continue adhere my "[i]n this, keep users ignorant manipulate marketplace," "such 'interest' per se illegitimate 'commercial speech' 'noncommercial' speech." 518 (concurring concur

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