DOJ backtracks on Wire Act

The Department of Justice (DOJ) may have opened the doors for online poker in the US by announcing that it will revise its opinions on the Wire Act of 1961, removing online poker from the list of banned online wager games. After the announcement, several US states including Nevada, Iowa, and Washington, have already made their moves by enacting laws and looking into regulatory updates that would enable online poker offerings within state borders.

The DOJ previously declared that according to the Wire Act, all forms of Internet-based gambling is illegal. But following the demands for clarifications by federal prosecutors from New York and Illinois, DOJ attorneys reverted its stance and declared that the Wire Act applies only to wagers on sporting events or contests while wagers on non-sporting events will be deemed legal.

Major gambling companies such as Las Vegas Sands and Wynn Resorts felt the immediate impact of the ruling after they shares went up by almost 2% following the announcement.

Meanwhile, several attorneys advised that another updated interpretation of the Wire act is possible and that the recent ruling still needs further analysis.

"Clearly, there was a major shift in policy understanding," Nevada Gaming Control Board Chairman Mark Lipparelli said . "But it's too early to jump to any final conclusion."

Gaming attorney Jennifer Carlton also commented:

"Without a doubt, the opinion has significantly altered the gaming landscape with regard to the placing and receiving of wagers over the Internet and possibly opens the door for states to allow online poker and other forms of Internet gambling. Gaming practitioners and entrepreneurs interested in Internet gaming must remain alert, attentive and proactive during the period of rapid legislative and regulatory changes that is likely to follow.".

Federal prosecutors may have cracked an opening for online poker in the US but it is definitely far from being sealed.