WASHINGTON -- The Supreme Court upheld a Puerto Rico law Tuesday that prohibits casinos from advertising on the island as a way of preventing the island's residents from wasting their money.
The justices, splitting 5-4, said the law did not violate the First Amendment rights of the Condado Plaza Hotel and Casino, which was fined $2,000 and threatened with revocation of its license after violating the Games of Chance Act.
Writing for the majority, Justice William Rehnquist said restraints placed on the free speech of casino operators on the island were justified by the government's belief 'that excessive casino gambling among local residents ... would produce serious harmful effects on the health, safety and welfare of the Puerto Rico citizens.'
'These are some of the very same concerns, of course, that have motivated the vast majority of the 50 states to prohibit casino gambling,' he said. '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' government interest.'
Casinos were legalized in Puerto Rico in 1948 to promote tourism but advertising was prohibited, commonwealth officials said, in an effort to discourage residents from wasting their money on games of chance.
Four members of the court dissented, with Justice William Brennan saying Puerto Rico has no right to 'suppress truthful commercial speech in order to discourage its residents from engaging in lawful activity.'
Justices Thurgood Marshall, Harry Blackmun and John Paul Stevens also dissented.
Although Puerto Rico is a U.S. commonwealth and not a state, decisions by the Supreme Court of Puerto Rico, which had upheld the gambling ad ban, are reviewable by the high court if they involve constitutional matters.
In its appeal to the justices, the hotel argued the law banning advertising is unconstitutional because it is too vague and does not specify what kind of advertising is improper.
Condado was fined for five violations, including placing an ad that mentioned the word casino, a listing in the telephone book, use of stationery with the word casino on the letterhead, and putting a brochure in hotel rooms referring to the casino.
The fifth fine was levied when hotel management held a news conference to protest the state's decision to remove some of its slot machines.
At the time of the violations, the hotel was a part of the Holiday Inn chain, but has since been bought by Williams Electronics Corp.
