U.S. Department Of Justice Changes Standing On Wire Act And Online Gambling
Monday, 26. December 2011

The U.S. Department of Justice (DOJ) gave US players and the entire online gambling industry an enormous Christmas Gift when, on December 23rd, they released an opinion that stated that the Wire Act of 1961 only applied to sportsbetting. This bombshell has widespread consequences as regards the US government’s future approach to the issue of online gambling.

The newly publicized opinion regards a petition made by the state lotteries of Illinois and New York requesting that the DOJ allow them to sell lottery tickets to players via the internet. The thirteen page opinion regarding the petition was written by Assistant Attorney General Virginia Seitz in September. In the opinion, Seitz stated that the Illinois and New York state lotteries were interested in selling lottery tickets and that nothing suggested that they had “plans involving sports wagering.” She concluded that “the proposed lotteries are not within the prohibitions of the Wire Act.

According to US Deputy Attorney General, the DOJ’s Legal council has reviewed the Wire Act and “concluded that it is limited only to sportsbetting.”

Prior to the release of the DOJ’s opinion on December 23rd, it was their stance that the prohibitions of the Wire Act went well beyond prohibiting sportsbetting. Previously, the DOJ used the Wire Act in their ongoing legal actions against offshore online gambling companies, online poker companies in particular. Their new approach to the Wire Act and online gambling in general is expected to open the US market to licensed and regulated online gambling operators.

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