The state-to-state spread of online gambling will fuel terrorism networks and transnational organized crime as it makes money laundering easier for those groups, former New York Gov. George Pataki told CNBC on Wednesday, citing the FBI.
"They have said it's going to be very difficult if not impossible to monitor this," said Pataki, the co-chair of the Coalition to Stop Internet Gambling, a public campaign backed by Las Vegas casino magnate Sheldon Adelson. "Changing the law that was in effect for 20 years simply by [a] ruling of the Department of Justice, this is not in the American people's interest."
Pataki made the claim about money laundering several times during an interview on "Squawk on the Street." His comments come amid an interindustry fight between brick-and-mortar casino interests, led by Adelson, and gambling entrepreneurs who want to expand digital gaming. Last year, New Jersey became the third state to allow online gambling