DOJ Changes Crucial Online Gambling Position

On Friday, December 23rd, the US Department of Justice changed its official position regarding online gambling according to the 1961 Wire Act. Previously, it was held that online poker, casino, lottery and sports betting were all covered under the act, but as of Friday the DOJ stated that the act only applied to online sports betting. This interpretation was long held by many legal experts, but the US government saw it differently for many years. The previous statement by the DOJ’s legal counsel included the statement “We conclude that the Criminal Division’s premise is incorrect and that the Wire Act prohibits only the transmission of communications related to bets or wagers on sporting events or contests,”.

It is yet to be seen how this will impact the Unlawful Internet Gambling Enforcement Act of 2006, but this recent change on the Wire Act could take the teeth out of the UIGEA. After all, if online poker and casinos are no longer viewed as violating the 1961 Wire Act, what authority does the Federal government have to prohibit money transfers to these sites? I would argue they lack the Constitutional authority to pass either of these acts, but since when has that stopped them?

We will follow this story as it unfolds and are looking forward to any positive effects this may have for online poker and casino games.