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Is the DOJ About to Reverse Wire Act Opinion?

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Back in 2011, an opinion from the US Department of Justice about the Federal Wire Act opened the door for states to regulate online gambling in the United States. Anti-gambling lobbyists have since been attempting, often unsuccessfully, to have this opinion reversed.

If a report from Online Poker Report holds true, there is a good chance that the lobbyists are about to secure a significant victory. According to the report, the DOJ is looking to issue an opinion effectively reversing the 2011 memo. This is coming at a time where some lawmakers are considering sports betting legislation.

On the surface, this would appear to be a potential death knell for the regulated market, but it is unclear at this time what route the DOJ will go in enforcing the Wire Act.

What Will Happen if the Opinion is Reversed?

The big question on everyone’s mind right now is what will happen to the regulated market and potential markets should the DOJ reverse their opinion. Like everything in poker, it depends. It depends primarily on what route the DOJ takes in their opinion.

Many lobbyists, including Las Vegas Sands Chairman Sheldon Adelson, want everything returned to how it was pre-opinion, which would effectively spell an end to most regulated efforts in the United States. However, there is talk that the DOJ could go a different route.

Some think that the DOJ may go the route of trying to stop illegal online gambling. What this would mean is that states such as New Jersey and Pennsylvania that have already regulated online gambling would be able to operate. However, offshore sites and unregulated online poker rooms would be subject to prosecution.

It is also unclear what would happen to the interstate networks that have been formed between NJ, DE, and NV. Since the Wire Act bans transactions over state lines, it is possible we could see the interstate networks shut down and the intrastate networks continue.

A Move to Secure Congressional Law?

The timing of this opinion is notable, especially considering that some lawmakers are interested in passing online sports betting legislation. As we already know, the Supreme Court struck down the ban on sports betting in 2018. Since then, several states have regulated the activity.

Congressional lawmakers are now looking to try and take a stab at regulating sports betting. Senators Orrin Hatch of Utah and Chuck Schumer of New York are looking to introduce sports betting legislation into the Senate. The bill will permit states to regulate online sports betting but prohibit betting on amateur sports except for college sports and the Olympics.

Something to be noted about this law is that it would update the Federal Wire Act to permit certain interstate sports wagers and to give the DOJ the authority to target offshore sports betting sites.

That last little bit seems like a potential reason for the potential shift on the DOJ opinion. The opinion could align with the sports betting bill, further opening the door for Congress to attempt and regulate sports betting nationwide.

Opinion May Be Coming Soon

The main reason we are pointing out this rumored opinion is that it could be dropped later this week, very similar to what was done by the DOJ back in 2011. Naturally, those following the issue will be paying attention, but the majority of the world will overlook this opinion due to the holiday season.

At this point, we need to take a wait and see approach on this rather than predict doom and gloom for the industry. This opinion may simply be a way for lawmakers to align the DOJ with their future legislative goals. It could be a way to appease a major Trump supporter. We will find out more once the opinion drops – assuming the DOJ follows through and actually drops the opinion.

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