The DoJ Issues Surprise Clarifications
In a clarification, which has been described as a surprise Christmas present to the online gambling industry, the Department of Justice (DoJ) made its opinion known on two issues. The first was that henceforth the infamous Wire Act of 1961 would apply only to sports betting. The second was that states could license and regulate non-sports related intrastate online gambling. The legal opinion issued by the DoJ was in response to inquiries from New York and Illinois about online lottery sales and a letter written by Senate Majority Lead Harry Reid (D-Nev.) and Senator Jon Kyl, (R-Ariz.) asking for clarification on the legality of online gambling.
The letter from the DoJ was signed by Assistant Attorney General Ronald Weich. Weich acknowledged that the Department was altering its view on the Wire Act after its Office of Legal Counsel (OLC) reviewed the law. Earlier, the DoJ had maintained that the Wire Act covered all types of online gambling. Weich wrote, “Although the OLC conclusion differs from the Department’s previous interpretation of the Wire Act, it reflects the Department’s position in Congressional testimony at the time the Wire Act was passed in 1961.” It may be recalled that the DoJ had prosecuted PartyGaming founders under the Wire Act not long ago. Weich gave the green signal to New York and Illinois stating that online lottery sales would not violate the law.
However, Weich stopped short of stating that online poker is legal. He made it clear that if a state banned online poker then the DoJ would investigate and prosecute the offenders under the UIGEA and other sections of the criminal code. The other ominous warning was, “If Congress wishes to give the federal government greater enforcement authority over non-sports related Internet gambling, it could do so by amending the Wire Act.”
The online poker advocates responded quickly and favorably. John Pappas, executive director of the Poker Players Alliance said, “This is a much needed clarification of an antiquated and often confusing law. This will provide policy makers at both the state and federal level with the legal confidence to move forward with licensing and regulation of online poker and other non-sporting activity within their respective jurisdictions.” With this clarification Nevada is in position to become the first state to offer intrastate online gaming to its residents. Pappas called upon the federal policy makers to seize the moment and enact federal licensing and regulation laws.
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