New Interpretation of Wire Act Declared Inaccurate
A U.S. federal court has affirmed a decision that could have significant implications for online poker: The proposed reinterpretation of the Wire Act of 1961 requested by the U.S. Department of Justice (DOJ) is deemed invalid. This ruling came after the New Hampshire Lottery Commission (NHLC) filed a lawsuit, which had previously been won at the initial stage. For online poker, this could result in the ability to play interstate in the future.
Concluding a lengthy dispute over online poker
Online poker is experiencing a resurgence in the United States: A reinterpretation of the Wire Act is unlawful, according to a ruling by the United States Court of Appeals for the First Circuit in Boston. The DOJ had sought to apply the 1961 law to all forms of cross-state online gambling through its reinterpretation.
However, the NHLC filed a lawsuit against this at the district court and won in summer 2019. Despite this victory, the DOJ refused to accept Judge Paul Barbadoro's decision and filed an appeal. With the confirmation of the ruling, online poker is now legal between individual U.S. states that have already legalized and regulated the sector.
The initial states to legalize online poker in the U.S. were Nevada, Delaware, and New Jersey. West Virginia, Michigan, and Pennsylvania followed in subsequent years, where the first legal online poker room opened in November 2019. Until now, players in these states could only compete against other players within their state borders. The states had been waiting for the legal dispute over the Wire Act to be resolved.
The Wire Act was originally intended to prevent sports betting on the telephone. It served as the basis for the Unlawful Internet Gambling Enforcement Act (UIGEA) of 2006, which prohibited payment transactions for online gambling. For years, the U.S. states held differing interpretations of the Wire Act until the Obama administration declared any form of reinterpretation invalid in 2011. Some states began legalizing online poker in response. In 2018, the DOJ called for the reinterpretation, which included the guidelines that had failed with the Restoration of America's Wire Act (RAWA) in 2014.
A reason to celebrate for online poker advocates
The latest ruling is good news for many online poker enthusiasts and supporters: The states that have already legalized online poker can now join forces, paving the way for U.S.-wide legalization.
Lotteries are also impacted by this decision, as a more stringent interpretation of the Wire Act would have made purchasing a lottery ticket in another state problematic. Attorney Jeff Ifrah, an advocate for online poker who was involved in the case himself, expressed his excitement via Twitter and referred to this as a significant victory. Several commenters congratulated him on his involvement.
Well-known providers like PokerStars and others have cause for relief: PokerStars operates in Pennsylvania and New Jersey, for example, but not in Nevada or Delaware. In the future, all legalized markets are likely to be connected via a network. This would expand the reach for operators and players and potentially lead to more U.S. states joining the network.
PokerStars, the international leader in online poker, has been accused of illegal gambling for years due to the contentious legislation. Due to violations of the UIGEA of 2006, the company recently faced a substantial fine in Kentucky, which now may become obsolete. PokerStars co-founder Isai Scheinberg (74), who had been living abroad to avoid U.S. justice since 2010, turned himself in to U.S. authorities in January 2020 and received a minimal sentence in September. He has always been known as a pioneer in the poker scene.
Will the DOJ pursue further action?
If the DOJ plans to appeal, they would now have to take their case to the United States Supreme Court (USSC). However, it's questionable whether such an appeal would be successful, as the new Biden administration is assumed to be supportive of online gambling.
Back in January 2020, Biden's government had already dismissed a reinterpretation of the Wire Act at a congress in Las Vegas. Conversely, former President Donald Trump, who had been part of the land-based casino lobby, had favored the tightening of the law.
Trump was also considered a close associate of recently deceased Las Vegas Sands CEO Sheldon Adelson, a staunch advocate for an outright ban on online gambling. His passing at the age of 87 makes further action by the DOJ unlikely. Nevertheless, the situation is still evolving.
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Source: www.onlinecasinosdeutschland.com
