Lead Opinion
delivered the opinion of the Court.
Fеderal law prohibits some, but by no means all, broadcast advertising of lotteries and casino gambling. In United States v. Edge Broadcasting Co.,
I
Through most of the 19th and the first half of the 20th centuries, Congress adhered to a policy that not only discouraged the operation of lotteries and similar schemes, but forbade the dissemination of information concerning such enterprises by use of the mails, even when the lottery in question was chartered by a state legislаture.
Congress extended its restrictions on lottery-related information to broadcasting as communications technology made that practice both possible and profitable. It enacted the statute at issue in this ease as §316 of the Communications Act of 1934, 48 Stat. 1088. Now codified at 18 U. S. C. § 1304 (“Broadcasting lottery information”), the statute prohibits radio and television broadcasting, by any station for which a license is required, of
“any advertisement of or information concerning any lottery, gift enterprise, or similar scheme, offering prizes dependent in whole or in part upon lot or chance, or any list of the prizes drawn or awarded by means of any such lottery, gift enterprise, or scheme, whether said list contains any part or all of such prizes.”
The statute provides that each day’s prohibited broadcasting constitutes a separate offense punishable by a fine, imprisonment for not more than one year, or both. Ibid. Although § 1304 is a criminal statute, the Solicitor General informs us that, in practicе, the provision traditionally has been enforced by the Federal Communications Commission (FCC), which imposes administrative sanctions on radio and telé-vision licensees for violations of the agency’s implementing regulation. See 47 CFR § 73.1211 (1998); Brief for Respondents 3. Petitioners now concede that the broadcast ban in § 1304 and the FCC’s regulation encompasses advertising for privately owned casinos — a concession supported by the broad language of the statute, our precedent, and the
During the second half of this century, Congress dramatically narrowed the scope of the broadcast prohibition in § 1304. The first inroad was minor: In 1950, certain not-for-profit fishing contests were exempted as “innocent pastimes ... far removed from the reprehensible type of gambling activity which it was pаramount in the congressional mind to forbid.” S. Rep. No. 2243, 81st Cong., 2d Sess., 2 (1950); see Act of Aug. 16, 1950, ch. 722, 64 Stat. 451, 18 U.S.C. § 1305.
Subsequent exemptions were more substantial. Responding to the growing popularity of state-run lotteries, in 1975 Congress enacted the provision that gave rise to our decision in Edge.
In 1988, Congress enacted two additional statutes that significantly curtailed the coverage of § 1304. First, the Indian Gaming Regulatory Act (IGRA), 102 Stat. 2467, 25 U. S. C. §2701 et seq., authorized Native American tribes to conduct various forms of gambling — including casino gambling — pursuant to tribal-state compacts if the State permits
A separate statute, the 1992 Professional and Amateur Sports Protection Act, 28 U. S. C. § 3701 et seq., proscribes most sports betting and advertising thereof. Section 3702 makes it unlawful for a State or tribe “to sponsor, operate, advertise, promote, license, or authorize by law or compact” — or for a person “to sponsor, operate, advertise, or promote, pursuant to the law or compact” of a State or tribe — any lottery or gambling scheme based directly or indirectly on competitive games in which amateur or professional athletes participate. However, the Act also includes a variety of exemptions, some with obscured congressional purposes: (i) gambling schemes conducted by Statеs or other governmental entities at any time between January 1,1976, and August 31, 1990; (ii) gambling schemes authorized by
Thus, unlike the uniform federal antigambling policy that prevailed in 1934 when 18 U. S. C. § 1304 was enacted, federal statutes now accommodate both progambling and anti-gambling segments of the national polity.
h — l h*H
Petitioners are an association of Louisiana broadcasters and its members who operate FCC-licensed radio and television stations in the New Orleans metropolitan area. But for the threat of sanctions pursuant to § 1304 and the FCC’s companion regulation, petitioners would broadcast promotional advertisements for gaming available at private, for-profit casinos that are lawful and regulated in both Louisiana and neighboring Mississippi.
Petitioners brought this action against the United States and the FCC in the District Court for the Eastern District of Louisiana, praying for a declaration that § 1304 and the FCC’s regulation violate the First Amendment as applied to them, and for an injunction preventing enforcement of the statute and the rule against them. After noting that all parties agreed that the case should be decided on their cross-motions for summary judgment, the District Court ruled in favor of the Government.
A divided panel of the Court of Appeals for the Fifth Circuit agreed with the District Court’s application of Central Hudson, and affirmed the grant of summary judgment to the Government.
“First, section 1304 serves the interest of assisting states that restrict gambling by regulating interstate activities such as broadcasting that are beyond the powers of the individual states to regulate. The sec*182 ond asserted governmental interest lies in discouraging public participation in commercial gambling, thereby minimizing the wide variety of social ills that have historically been associated with such activities.” Id., at 1299.
The majority relied heavily on our decision in Posadas de Puerto Rico Associates v. Tourism Co. of P. R.,
While the broadcasters’ petition for certiorari was pending in this Court, we decided 44 Liquormart, Inc. v. Rhode Island,
On remand, the Fifth Circuit majority adhered to its prior conclusion.
III
In a number of cases involving restrictions on speech that is “commercial” in nature, we have employed Central Hudsons four-part test to resolve First Amendment challenges:
“At the outset, we must determine whether the expression is protected by the First Amendment. For commercial speech to come within that provision, it at least must concern lawful activity and not be misleading. Next, we ask whether the asserted governmental interest is substantial. If both inquiries yield positive answers, we must determine whether the regulation directly advances the governmental interest asserted, and whether it is not more extensive than is necessary to serve that interest.”447 U. S., at 566 .
In this analysis, the Government bears the burden of identifying a substantial interest and justifying the challenged restriction. Edenfield v. Fane,
The four parts of the Central Hudson test are not entirely discrete. All are important and, to a certain extent, inter
IV
All parties to this ease agree that the messages petitioners wish to broadcast constitute commercial speech, and that these broadcasts would satisfy the first part of the Central Hudson test: Their content is not misleading and concerns lawful activities, i. e., private casino gambling in Louisiana and Mississippi. As well, the proposed commercial messages would convey information — whether taken favorably or unfavorably by the audience — about an activity that is the subject of intense public debate in many communities. In addition, petitioners’ broadcasts presumably would dissemi
The second part of the Central Hudson test asks whether the asserted governmental interest served by the speech restriction is substantial. The Solicitor General identifies two such interests: (1) reducing the social costs associated with “gambling” or “casino gambling,” and (2) assisting States that “restrict gambling” or “prohibit casino gambling” within their own borders.
We can accept the characterization of these two interests as “substantial,” but that conclusion is by no means self-evident. No one seriously doubts that the Federal Government may assert a legitimate and substantial interest in alleviating the societal ills rеcited above, or in assisting like-minded States to do the same. Cf. Edge,
Of course, it is not our function to weigh the policy arguments on either side of the nationwide debate over whether and to what extent casino and other forms of gambling should be legalized. Moreover, enacted congressional policy and “governmental interests” are not necessarily equivalents for purposes of commercial speech analysis. See Bolger,
The third part of the Central Hudson test asks whether the speech restriction directly and materially advances the asserted governmental interest. “This burden is not satisfied by mere speculation or conjecture; rather, a governmental body seeking to sustain a restriction on commercial speech must demonstrate that the harms it recites are real and that its restriction will in fact alleviate them to a material degree.” Edenfield,
The fourth part of the test complements the direct-advancement inquiry of the third, asking whether the speeeh restriction is not more extensive than necessary to serve the interests that support it. The Government is not required to employ the least restrictive means conceivable, but it must demonstrate narrow tailoring of the challenged regulation to the asserted interest — “a fit that is not necessarily perfect, but reasonable; that represents not necessarily the single best disposition but one whose scope is in proportion to the interest served.” Fox,
As applied to petitioners’ case, § 1304 cannot satisfy these standards. With regard to the first asserted interest—
The FCC’s interpretation and application of §§1304 and 1307 underscore the statute’s infirmity. Attempting to enforce the underlying purposes and policy of the statute, the FCC has permitted broadcasters to tempt viewers with claims of “Vegas-style excitement” at a commercial “casino,” if “casino” is part of the establishment’s proper name and the advertisement can be taken to refer to the casino’s amenities,
From what we can gather, the Government is committed to prohibiting accurate product information, not commercial enticements of all kinds, and then only when conveyed over certain forms of media and for certain types of gambling— indeed, for only certain brands of casino gambling — and despite the fact that messages about the availability of such gambling are being conveyed over the airwaves by other speakers.
Even putting aside the broadcast exemptions for arguably distinguishable sorts of gambling that might also give rise to social costs about which the Federal Government is concerned — such as state lotteries and parimutuel betting on horse and dog races, § 1307(a)(1)(B); 28 U. S. C. § 3704(a)— the Government presents no convincing reason for pegging its speech ban to the identity of the owners or operators of the advertised casinos. The Government cites revenue needs of States and tribes that conduct casino gambling, and notes that net revenues generated by the tribal casinos аre dedicated to the welfare of the tribes and their members. See 25 U. S. C. §§ 2710(b)(2)(B), (d)(1)(A)(ii), (2)(A). Yet the Government admits that tribal casinos offer precisely the same types of gambling as private casinos. Further, the Solicitor General does not maintain that government-operated casino gaming is any different, that States cannot derive revenue from taxing private casinos, or that any one class
Ironically, the most significant difference identified by the Government between tribal and other classes of casino gambling is that the former is “heavily regulated.” Brief for Respondents 88. If such direct regulation provides a basis for believing that the social costs of gambling in tribal casinos are sufficiently mitigated to make their advertising tolerable, one would have thought that Congress might have at least experimented with comparable regulation before abridging the speech rights of federally unregulated casinos. While Congress’ failure to institute such direct regulation of private casino gambling does not necessarily compromise the constitutionality of §1304, it does undermine the asserted justifications for the restriction before us. See Rubin,
We reached a similar conclusion in Rubin. There, we considered the effect of conflicting federal policies on the Government’s claim that a speech restriction materially advanced its interest in preventing so-called “strength wars” among competing sellers of certain alcoholic beverages. We concluded that the effect of the challenged restriction on commercial speech had to be evaluated in the context of the entire regulatory seheme, rather than in isolation,
Given the special federal interest in protecting the welfare of Native Americans, see California v. Cabazon Band of Mission Indians,
The second interest asserted by the Government — the derivative goal of “assisting” States with policies that disfavor private casinos — adds little to its case. We cannot see how this broadcast restraint, ambivalent as it is, might directly and adequately further any state interest in dampening consumer demand for casino gambling if it cannot achieve the same goаl with respect to the similar federal interest.
Furthermore, even assuming that the state policies on which the Federal Government seeks to embellish are more coherent and pressing than their federal counterpart, § 1304 sacrifices an intolerable amount of truthful speech about lawful conduct when compared to all of the policies at stake and the social ills that one could reasonably hope such a ban to eliminate. The Government argues that petitioners’ speech about private casino gambling should be prohibited in Louisiana because, “under appropriate conditions,” 3 Record 628, citizens in neighboring States like Arkansas and Texas (which hosts tribal, but not private, commercial casino gambling) might hear it and make rash or costly decisions. To be sure, in order to achieve a broader objective such regulations may incidentally, even deliberately, restrict a certain amount of speech not thought to contribute significantly to the dangers with which the Government is concerned. See Fox,
VI
Accordingly, respondents cannot overcome the presumption that the speaker and the audience, not the Government, should be left to assess the value of accurate and nonmis-leading information about lawful conduct. Edenfield,
Reversed.
Notes
See, e. g., Act of Mar. 2, 1895, 28 Stat. 963 (prohibiting the transportation in interstate or foreign commerce, and the mailing of, tickets and advertisements for lotteries and similar enterprises); Act of Mar. 2, 1827, §6, 4 Stat. 238 (restricting the participation of postmasters and assistant postmasters in the lottery business); Act of July 27, 1868, § 13, 15 Stat. 196 (prohibiting the mailing of any letters or circulars concerning lotteries or similar enterprises); Act of July 12, 1876, §2, 19 Stat. 90 (repealing an 1872 limitation of the mails prohibition to letters and circulars concerning "illegal” lotteries); Anti-Lottery Act of 1890, § 1, 26 Stat. 465 (extending the mails prohibition to newspapers containing advertisements or prize lists for lotteries or gift enterprises).
See, e.g., La. Rev. Stat. Ann. §§27:2, 27:15B(1), 27:42-27:43, 27:44(4), 27:44(10)-27:44(12) (West 1999); Miss. Code Ann. §§75-76-3, 97-33-25 (1972); see also La. Rev. Stat. Ann. §§27:202B-27:202D, 27:205(4), 27:205(12)-27:205(14), 27:210B (West 1999).
See, e. g., Pet. for Cert. 23; Brief for Petitioners 10; Reply Brief for Petitioners 18-20; 44 Liquormart, Inc. v. Rhode Island, 517 U. S. 484, 526-528 (1996) (Thomas, J., concurring); Kozinski & Banner, Who’s Afraid of Commercial Speech?, 76 Va. L. Rev. 627 (1990); Brief for Association of National Advertisers, Inc., as Amicus Curiae 3-4; Brief for American Advertising Federation as Amicus Curiae 2.
Brief for Respondents 12, 15, 28. We will concentrate on the Government’s contentions as to “casino gambling”: They are the focus of the Government’s argument and are more closely linked to the speech regulation at issue, thereby providing a more likely basis for upholding § 1304 as applied to these broadcasters and their proposed messages.
Some form of gambling is legal in nearly every State. Government Lodging 192. Thirty-seven States and the District of Columbia operate lotteries. Ibid.; National Gambling Impact Study Commission, Staff Report: Lotteries 1 (1999). As of 1997, commercial casino gambling existed in 11 States, see North American Gaming Report 1997, Int’l Gaming & Wagering Bus., July 1997, pp. S4-SS1, and at least 5 authorize state-sponsored video gambling, see Del. Code Ann., Tit. 29, §§ 4801, 480S(f)-(g), 4820 (1974 and Supp. 1997); Ore. Rev. Stat. §461.215 (1998); R. I. Gen. Laws §42-61.2-2(a) (1998); S. D. Const., Art. III, §25 (1999); S. D. Comp. Laws Ann. §§42-7A-4(4), (11A) (1991); W.Va. Code §29-22A-4 (1999). Also as of 1997, about hаlf the States in the Union hosted Class III Indian gaming (which may encompass casino gambling), including Louisiana, Mississippi, and four other States that had private casinos. United States General Accounting Office, Casino Gaming Regulation: Roles of Five States and the National Indian Gaming Commission 4-6 (May 1998) (including Indian casino gaming in five States without approved compacts); cf. National Gambling Impact Study Commission, Staff Report: Native American Gaming 2 (1999) (hereinafter Native American Gaming) (noting that 14 States have on-reservation Indian casinos, and that those casinos are the only casinos in 8 States). One count by the Bureau of Indian Affairs tallied 60 tribes that advertise their casinos on television and radio. Government Lodging 408, 435-437 (3 App. in Player’s Int’l, Inc. v. United States, No. 98-5127 (CA3)). By the mid-1990’s, tribal casino-style gambling generated over $3 billion in gaming revenue — increasing its share to 18%
The Government cites several secondary sources and declarations that it put before the Federal District Court in New Jersey and, as an alternative to affirming the judgment below, requests a remand so that it may have another chance to build a record in the Fifth Circuit. Remand is inappropriate for several reasons. First, the Government had ample opportunity to enter the materials it thought relevant after we vacated the Fifth Circuit’s first ruling and remanded for reconsideration in light of UU Liquormart. Second, the Government’s evidence did not convince the New Jersey court that § 1304 could be constitutionally applied in circumstances similar to this case, see Players Int’l, Inc. v. United States, 988
See, e. g., Letter to DR Partners, 8 FCC Red. 44 (1992); In re WTMJ, Inc., 8 FCC Red. 4354 (1993) (disapproving of the phrase “Vegas style games”); see also 2 Record 493, 497-498 (Mass Media Bureau letter to Forbes W. Blair, Apr. 10, 1987) (concluding that a proposed televisiоn commercial stating that the “odds for fun are high” at the sponsor’s establishment would be lawful); id., at 492, 500-501.
As we stated in Edge: “[Applying the restriction to a broadcaster such as [respondent] directly advances the governmental interest in enforcing the restriction in nonlottery States, while not interfering with the policies of lottery States like Virginia.... [W]e judge the validity of the restriction in this case by the relation it bears to the general problem of accom
Concurrence Opinion
concurring.
Title 18 U. S. C. § 1304 regulates broadcast advertising of lotteries and casino gambling. I agree with the Court that “[t]he operation of § 1304 and its attendant regulatory regime is so pierced by exemptions and inconsistencies,” ante, at 190, that it violates the First Amendment. But, as the Court observes:
“There surely are practical and nonspeeeh-related forms of regulation — including a prohibition or supervision of gambling on credit; limitations on the use of cash machines on casino premises; controls on admissions; pot or betting limits; location restrictions; and licensing requirements — that could more directly and effectively alleviate some of the social costs of casino gambling.” Ante, at 192.
Were Congress to undertake substantive regulation of the gambling industry, rather than simply the manner in which it may broadcast advertisements, “exemptions and inconsistencies” such as those in § 1304 might well prove constitutionally tolerable. “The problem of legislative classification is a perennial one, admitting of no doctrinaire definition. Evils in the same field may be of different dimensions and proportions, requiring different remedies. Or so the legislature may think. Or the reform may take one step at a time, addressing itself to the phase of the problem which seems most acute to the legislative mind. The legislature may select one phase of one field and apply a remedy there, neglecting the others.” Williamson v. Lee Optical of Okla., Inc.,
But when Congress regulates commercial speech, the Central Hudson test imposes a more demanding standard
Concurrence Opinion
concurring in the judgment.
I continue to adhere to my view that “[i]n eases such as this, in which the government’s asserted interest is to keep legal users of a product or service ignorant in order to manipulate their choices in the marketplace,” the Central Hudson test should not be applied because “such an ‘interest’ is per se illegitimate and can no more justify regulation of ‘commercial speech’ than it can justify regulation of ‘noncommercial’ speech.” 44 Liquormart, Inc. v. Rhode Island,
