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Rarely is it ever exercised as every business needs to protect the reputation of its "brand".
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Its not excercised in cellphone land and so the cellphone industry does not have a terrible reputation and they aren't considering making cellphones illegal in the US. It IS excercised in casino-land. All the blooming time by the looks of it. As a result, casinos have a bad name, we have to have whole forums to discuss complaints about them and the industry as a whole is dragged down.
Thats why I suggest for reputable casinos to be open and honest and frame their terms in a way that is clearly understood to mean "we'll play by the rules as long as you do" instead of giving them free reign to ignore the rules as and when they feel like it. But if reputable casinos want to be dragged down by others and tarred with the same brush thats their perogative