The complex saga of the 1961 Wire Act and its subsequent interpretations and re-interpretations continues to play out in US courts. The latest news is that the Department of Justice intents appealing the ruling of a New Hampshire judge that the Wire Act only applies to sports betting.
In 2011, the DOJ surmised that the Wire Act only applied to sports betting. This opinion paved the way for individual states to open up their own online gaming and lottery markets.
However, in January this year, the Office of Legal Counsel decided to backtrack on this opinion and said that that Wire Act actually applied to all forms of online gambling.
This sent several states into a tailspin, especially those who had already opened up their markets and lotteries to online platforms.
The New Hampshire Lottery, backed by a number of states, challenged the ruling. District Judge Paul Barbadoro issued a verdict in June 2019, saying that the Act only applies to sports betting and upholding the DOJ’s 2011 decision.
The DOJ has been slammed for its decision to appeal.
Jeff Ifrah, founder of iDevelopment and Economic Association (iDEA) said: “We hope that, rather than engaging in a protracted, expensive and ultimately unsuccessful legal fight, the Department will take this opportunity to negotiate a settlement which will focus the Wire Act and DOJ’s enforcement resources on the right targets – the unlicensed illegal offshore Internet gambling operators who do not create jobs or tax revenue in the U.S. and do not appropriately protect consumer.”
