Last week the Justice department made an announcement concerning their opinion about the legality of online gambling. Thus, the Reinterpretation of the Wire Act may Ban Online Gambling in all of its forms. According to their press release, this would make online lotteries, poker, fantasy sports, casinos and sports betting illegal.
Even though a reversal of a Justice Department’s legal interpretation is rare, it is not unusual. Thus, the Office of Legal Counsel disagrees with the 2011 opinion that the Wire Act only applies to sports betting. The opinion from the Office of Legal Counsel was made on Nov. 2 2018 but only became public last Monday.
This new opinion has had several online gambling companies scrambling for legal advice from their lawyers. In fact, shares of casino operators and sports betting software companies fell last Tuesday after the announcement was made. However, the new interpretation will probably go to court as other judges will challenge this opinion.
What the New Interpretation of the Wire Act means for the Gambling Industry
Ever since the 2011 opinion of the Wire Act, several state lotteries began to sell tickets online. In addition, casinos also began to offer online gambling and online poker rooms have been thriving.
Gambling News experts believe that gambling companies with interstate lotteries and poker rooms. This is because many of their clients are from different states which would be a clear violation of the new interpretation.
One such example would be the exemption between Delaware, Nevada and New Jersey. This is because this exemption allows their residents to play online poker against each other.
The next question that is on everyone’s mind is how hard the Justice Department will push this new interpretation. Thus, will they enforce it and if they do, how strict will they be?
One fact that is disturbing from a legal point of view is the influence of billionaire casino executive Sheldon Adelson. This is because he is against online gambling and has been lobbying the government to reconsider the 2011 decision. Furthermore, the lobbying was not from a moral standpoint but because online gambling takes away from his land casino profits.
