From NTRA
WASHINGTON, D.C. (Jan. 17, 2019) — Earlier this week the Department of Justice (DOJ) released an opinion reversing its 2011 opinion that the federal Wire Act applies only to sports wagering and not to other types of online wagering. The new opinion says the Wire Act applies to all online gaming including online poker and online lottery ticket sales.
Alex Waldrop, NTRA president and CEO, issued the following statement regarding the DOJ’s decision to reconsider whether the Wire Act applies to non-sports gambling:
“As expected, the Department of Justice issued a lengthy opinion reversing its 2011 opinion by stating that the Wire Act applies to all forms of online wagering, not just sports wagering. This opinion does not affect our longstanding right to conduct interstate online wagering on horse racing as long it is conducted in compliance with the Interstate Horseracing Act. We will continue to review the opinion and update the industry as the situation develops.”
Since the NTRA led the successful effort to amend the Interstate Horseracing Act (IHA) in 2000, the horse racing industry has been able to forcefully argue that the prohibitions of the Wire Act do not apply to legal, state regulated online wagering on horse racing.
Several states legalized online lottery and casino gaming following the DOJ’s 2011 opinion. Furthermore, after last year’s Supreme Court decision striking the Professional and Amateur Sports Protection Act (PASPA), some states legalized online sports betting operations within their borders. There are questions as to how this week’s opinion ultimately affects casinos, lotteries and even online sports betting platforms. The NTRA thinks these uncertainties could potentially result in litigation.
In any event, the NTRA’s federal legislative team will be working with allies on Capitol Hill to ensure that racing will not be negatively affected by this ruling.