Greater New Orleans Broadcasting Association v. United States of America and Federal Communications CommissionGreater New Orleans Broadcasting Association v. United States of America and Federal Communications Commission
Lead Opinion
Greater New Orleans Broadcasters Association (GNOBA) and a group of television and radio stations in the New Orleans metropolitan area (collectively “the Broadcasters”) unsuccessfully challenged in district court the constitutionality of a federal statute prohibiting the broadcast of radio and television advertisements for casino gambling.
BACKGROUND
GNOBA is a non-profit corporation organized for the purpose of representing its membership as a trade association in matters affecting the broadcast industry. Each member broadcaster of GNOBA is licensed to a primary place of business in Louisiana. The members want to broadcast advertisements for casino gambling activities, which are licensed and legal in Louisiana and in neighboring Mississippi, but have refrained from doing so for fear of criminal prosecution and sanctions pursuant to
In November 1994, the district court entered summary judgment in favor of the government. Citing FCC v. American Broadcasting Co.,
DISCUSSION
The Broadcasters renew their contention that
Instead, the Broadcasters choose to attack the historical underpinnings of the statute in an attempt to demonstrate that the statute was never intended to apply to casino gambling. Apparently, the Broadcasters are laboring under the misperception that this court is free to reject statutory interpretations handed down by the Supreme Court. This we cannot do. As the Broadcasters
Turning to the constitutionality of
“[C]ommensurate with its subordinate position in the scale of First Amendment values,” Ohralik v. Ohio State Bar Ass’n,
For commercial speech to come within [the First Amendment], 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.
Central Hudson,
The first prong, whether the speech concerns lawful activity and is not misleading, is not in dispute. The government concedes that the Broadcasters seek only to broadcast truthful advertising about lawful casino gambling activities. The broadcasters have chosen to center their argument on the second prong — the nature and substantiality of the federal government’s interest in prohibiting broadcast advertisements of casino gambling.
The government asserts two interests it contends are substantial. First,
The Broadcasters assault the federal interests in a number of ways. First, the Broadcasters attempt to characterize United States v. Edge Broadcasting Co., — U.S. —,
Audaciously, the Broadcasters next challenge the federal government’s interest in limiting the promotion of certain forms of gambling by means of interstate commerce. The validity as well as substantiality of the federal interest in regulating gambling’s interstate manifestations, are, however, as old as the legislation prohibiting use of the federal mails for advertising state-chartered lotteries. Act of July 12, 1876, ch. 186 § 2, 19 Stat. 90, upheld in Ex parte Jackson,
The Broadcasters also attack the governmental interest in discouraging public participation in commercial gambling on federalism grounds. They contend that the federal government may not assert an interest in the public’s health, safety, and welfare that is contrary to state policy. In other words, the federal government has no interest in discouraging casino gambling if Louisiana has legalized it. This argument is contrary to Supreme Court precedent.
Taking as valid the federal government’s interest in the health, safety, and welfare of its citizens, there remains only to be determined whether the goal of discouraging participation in gambling is substantial. Posadas de Puerto Rico Assoc. v. Tourism
Posadas involved virtually identical facts. Although the commonwealth of Puerto Rico licensed and legalized casino gambling, it prohibited advertisements aimed at its own citizens in an attempt to discourage their participation in gambling. Upholding the constitutionality of the advertising prohibition, the Supreme Court’s analysis of the second prong of the Central Hudson test was perfunctory: “We have no difficulty in concluding that the Puerto Rico Legislature’s interest in the health, safety, and welfare of its citizens constitutes a ‘substantial’ governmental interest.” Id. at 341,
The third and fourth prongs of the Central Hudson analysis concern the “fit” between the interest asserted and the means employed. Having been unable to dispel the substantial federal interests, the Broadcasters face a much more difficult challenge on the last two parts of the Central Hudson analysis. They cannot seriously dispute that a prohibition of advertising casino gambling directly advances the governmental interest in discouraging such gambling and fulfills the third Central Hudson prong. It is axiomatic that the purpose and effect of advertising is to increase consumer demand. See Posadas,
The Broadcasters complain that the various exceptions to
The Broadcasters nevertheless argue that permitting other forms of media to advertise casino gambling undercuts the government’s contention that
Nor do we require that the Government make progress on every front before it can make progress on any front. If there is an immediate connection between advertising and demand, and the federal regulation decreases advertising, it stands to reason*1302 that the policy of decreasing demand for gambling is correspondingly advanced.
Id. See also Central Hudson,
The fourth requirement, that the restriction be no more extensive than necessary to serve the government’s interest, is also met. This prong of Central Hudson is not, as the Fifth Circuit recently observed, a “least restrictive means” test, but requires only that the regulation’s restrictions reasonably fit the desired objective. Moore v. Morales,
A final note. In Edge, the Court stated that gambling “falls into a category of ‘vice’ activity that could be, and frequently has been, banned altogether”, — U.S. at-,
CONCLUSION
In summary,
Notes
. See 134 Cong.Rec. 12,278-82 (1988); 134 Cong.Rec. 31,073-76 (1988).
. The government may permissibly assert that multiple interests are served by a given statute, only one of which need be substantial. See, e.g., Bolger v. Youngs Drug Products Corp.,
. In The Lottery Case, Justice Harlan summed up the authorities as holding that "the power to regulate commerce among the several states is vested in Congress as absolutely as it would be in a single government ...; that such power is plenary, complete in itself, and may be exerted by Congress to its ultimate extent, subject only to such limitations as the Constitution imposes....”
. It is also contrary to the weight of authority in the analogous cigarette advertising context. See Capital Broadcasting Co. v. Mitchell,
. Excepted from
. The alleged underinclusiveness of
. Additionally, Congress is permitted more intrusive regulation of the broadcast media than other forms of media. See Turner Broadcasting System, Inc. v. FCC, — U.S. —, —,
. But see Valley Broadcasting Co.,
Dissenting Opinion
dissenting:
Persuaded that the values underlying the first amendment commercial speech doctrine compel rejection of a regulatory scheme riddled with such inconsistencies and exceptions as to result in suppression of speech without adequate justification, I must respectfully dissent.
As the Supreme Court has made abundantly clear, the first amendment protects the interest of the listener in the free flow of truthful, non-misleading commercial speech. The doctrine respects the individual’s right to information relevant to the making of lawful choices
This basis for the protection of commercial speech is not vitiated when the speech concerns lawful but potentially harmful activities, such as alcohol consumption or gambling.
The government seeks to justify a nationwide ban on broadcasts of commercial messages discussing the gambling activities in state-licensed casinos. Given the social ills often associated with gambling, it cannot be gainsaid that the interests asserted in support of this ban are substantial. The Central Hudson test, however, requires that the government demonstrate that its interests are materially advanced by the ban,
The government claims an independent federal interest in discouraging public participation in commercial gambling. The restriction at bar is the awkward residual of
A focusing of what can and cannot be done under the challenged regulation appears in order. Casinos are allowed to advertise their existence, to air the word “casino” as part of a legal name, and to refer to the non-gambling amenities within.
The government also asserts that the ban advances the federal interest in supporting policies of states which have chosen to prohibit casino gambling. Messages banned by the statute cannot be broadcast by any station licensed in the United States. Accordingly, residents of non-casino states cannot receive such messages from broadcasts originating in states where casino gambling is legal. Nor may residents of the casino states.
Recognizing a value in advancing the government’s interest in aiding state anti-gambling policies, we must measure the extent of the restriction and weigh countervailing forces. The ban is nationwide. Some states allow casino gambling; some states do not. By not cabining the regulation to radio and television stations in non-casino states, the ban impinges unnecessarily on the policies of states which have legalized casino gambling. A substantial federal interest in protecting state choice in gambling decisions, by limiting bans on lottery advertising to stations licensed by non-lottery states, was asserted and recognized in United States v. Edge Broadcasting Co.
Unlike the statutory scheme upheld in Edge, the ban before us allows stations in states where gambling is illegal to broadcast commercial messages promoting a gambling forum in another state, so long as the gambling activities taking place in that establishment are not explicitly referenced.
I respectfully dissent.
. Central Hudson Gas & Elec. Corp. v. Public Serv. Comm’n of New York,
. Virginia Pharmacy Bd. v. Virginia Citizens Consumer Council, Inc.,
. The Supreme Court recently affirmed that restrictions on speech about legal “vices" are reviewed under the Central Hudson standard rather than by a more deferential approach. Rubin v. Coors Brewing Co., — U.S. —, — n. 2,
. The “direct advancement" prong of Central Hudson is not satisfied by "mere speculation and 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 v. Fane, — U.S. —, —,
. Coors, - U.S. at -,
. An unofficial count reflects at least 21 states.
. See, e.g., Letter to DR Partners, 8 F.C.C.R. 44 (1992).
. -U.S.-,
. In contrast, Posadas de Puerto Rico Associates v. Tourism Co.,
. Federal Communications Commission policy allows a station in a non-casino state to broadcast an advertisement promoting a casino so long as use of the word "casino” is confined to the establishment's proper name and other references to gambling are not explicit. See, e.g., Letter to Calvenar Broadcasting, Inc., 8 F.C.C.R. 32 (1992).