There Will Be No Wire Act Prosecution Of Online Gambling.
U.S. Wire Act Seven years after an original Department of Justice (DOJ) legal opinion cleared the way for states to regulate online casino, poker and lottery games, the legal landscape for U.S. online gaming has been clouded by a sudden move by the Trump administration to reverse that opinion and advise that the 1961 Wire Act applies to gambling activities beyond sports betting, after all.
Industry concerned amending Wire Act could lead to federal regulation Attorneys call for end to 0.25 percent federal excise tax on wagering An enduring legacy of the coronavirus pandemic almost certainly will be an acceleration of U.S. gaming’s transition from brick and mortar casinos to internet gambling and mobile sports wagering.
The 1961 Wire Act had another day in court last week when the First Circuit Court of Appeals listened to oral arguments from the New Hampshire Lottery and co-plaintiff NeoPollard, as well as the Department of Justice, the defendant in the case. The case represents a crucial moment for gambling, as the case will likely determine the legality of online gambling in the US.
The Interstate Wire Act of 1961, often called the Federal Wire Act, is a United States federal law prohibiting the operation of certain types of betting businesses in the United States. It begins with the text: Whoever being engaged in the business of betting or wagering knowingly uses a wire communication facility for the transmission in interstate or foreign commerce of bets or wagers or.
On Monday a U.S. District Court judge in New Hampshire ruled that the 1961 Interstate Wire Act applies only to sports betting and not to other forms of online gambling, including sales of lottery.
The government believed that the Wire Act and the UIGEA were enough to prevent all illegal online gambling. 2011 Wire Act Opinion. Five years after the UIGEA was created, the state of New York requested that the DOJ clarify what the Wire Act actually covered due to the ambiguity found in its wording. After reviewing the Wire Act, the DOJ.
The 2011 opinion had carved out sports betting as the only type of gambling to be covered by the Wire Act. The new opinion instructs that the Wire Act is applicable to any form of gambling that uses a wire communication and crosses state lines. As drafted, this includes online gambling and online lotteries.