On 16th January, Sheppard Mullin published an article concerning the recent statement from the US DoJ on what it saw as the legality of online gambling in the US under the Wire Act.  It explains that, in 2011, the DoJ said that the prohibitions of the Wire Act are limited to sports betting, but now it has concluded that the 2011 opinion was wrong, and that only one of 4 parts of the Wire Act apply to sports betting, while the other 3 apply to any online betting.  It goes on to explain that the Wire Act 1961 prohibits persons involved in the gambling business from transmitting several types of wagering-related communications over the wires, and then sets out what the relevant provisions say.  The article says that this is a significant reversal for the sector, but is not necessarily binding on courts.  However, it warns, the DoJ could engage in enforcements based on this interpretation, unless and until there is a successful legal challenge or Congress changes the law.

Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

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