Compliance Updates

The Wire Act in the USA could affect the iGaming industry

Published

7 years ago

January 16, 2019

Niji Narayan

Business Boost for Online Gambling Companies in USA Amid Casino Closures

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The US Department of Justice (DOJ) has clarified that the Wire Act should apply to all forms of gambling and not only to sports betting. The clarification could prove a problematic to all forms of igaming in the country that crosses state lines.

The clarification could adversely affect daily fantasy sports, intrastate online casino and poker, online lottery sales and marketing across state lines for all types of gambling.

The DOJ’s new opinion replaces its 2011 iteration released under the Obama administration, which stated that the Wire Act only applied to sports betting.

The Wire Act originally emerged in 1961 and was designed to fight against organised crime by outlawing racing and sports betting across communications systems in the US. Controversy then reined concerning its scope when it was used in the 1990s to prosecute online gambling.

The OLC’s new opinion states: “While the Wire Act is not a model of artful drafting, we conclude that the words of the statute are sufficiently clear and that all but one of its prohibitions sweep beyond sports gambling. We further conclude that the 2006 enactment of UIGEA (Unlawful Internet Gambling Enforcement Act) did not alter the scope of the Wire Act.”

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Niji Narayan

Niji Narayan has been in the writing industry for well over a decade or so. He prides himself as one of the few survivors left in the world who have actually mastered the impossible art of copy editing. Niji graduated in Physics and obtained his Master’s degree in Communication and Journalism. He has always interested in sports writing and travel writing. He has written for numerous websites and his in-depth analytical articles top sports magazines like Cricket Today and Sports Today. He reports gaming industry headlines from all around the globe.