Want to stay current on e–commerce law? Sign up for Email Newsletter.
US DoJ Opens Door to Internet Gambling?
The United States Department of Justice (“DoJ”) has taken the (possibly unintended) position that the Wire Act only applies to a narrow band of gambling activity. Specifically, in addressing proposals by Illinois and New York regarding Internet and out-of-state transaction processors, the DoJ concluded that the Wire Act’s “prohibitions relate solely to sport-related gambling activities in interstate and foreign commerce.” On this basis, if the bettors and operator are in the same state, and the gambling does not involve a sports event or race, the operator has not breached the Wire Act (even if phone wires happen to cross into another state). Moreover, if the state legislature has made the online game legal, the gambling would not violate any other federal anti-gambling law.
This decision may result in states legalizing online poker and other games whether limited to players in that state, or in other states in which gambling is legal.
For further commentary, please visit:
http://www.casinocitytimes.com/news/article/gambling-and-the-law-a-present-from-the-doj-199571