Justice Department Changes Opinion Regarding Online Gambling in the US

The year 2011 had been quite difficult for the entire online gambling industry. Three major gambling rooms were closed down by the US Department of Justice (DOJ) in April. This was a severe blow to the industry. Player traffic went down significantly leading to the closing down of companies like English Harbour. However, now with the year coming to an end, the DOJ declared a change in its opinion regarding online gambling.

Wire Act not Applicable for Internet Gambling

The Wire Act passed in the year 1961 applies only to sports betting, according to the latest declaration by the DOJ. Till date, the DOJ held that all forms of gambling are illegal within the US. Action had been taken by the body against well known gambling rooms for violating the Wire Act. Millions of dollars have been paid by gambling sites to the DOJ as fines.

Change in Opinion Came After Re-Evaluation of the Wire Act

The change in opinion from the DOJ came after the Wire Act was being re-evaluated by the Office of Legal Counsel. It functions under the DOJ of the US. The re-evaluation was carried out after states like Illinois and New York requested for clarifications on the Wire Act in 2009. The two states wanted to sell lottery tickets. The opinion from the DOJ said that the proposal to sell lottery tickets don’t violate the Wire Act.

Individual States are Allowed to Regulate Online Gambling

In a separate announcement, the Justice Department declared that individual states are allowed to regulate and license intrastate online gambling. However, operating sports betting sites will not be permitted. This announcement was made in response to a legal letter written by Senator Jon Kyl and Senate Majority Leader Harry Reid. They asked for clarifications on the federal law with regard to internet gambling.

Experts Predict Online Gambling to be Legalized in the Near Future

According to industry experts, the change in opinion of the Justice Department is a strong indication of the possibility of online gambling to be legalized in the US.

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