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DOJ TO APPEAL THE WIRE ACT RULING

DOJ To Appeal The Wire Act Ruling

Viktor Vangelov | Published 19 Aug 2019, 10:46 a.m.

The Wire Act and the Department of Justice opinion regarding its scope from November 2018 have been focal points of discussion in US gambling circles. The opinion from 2018 was effectively a reversal of the 2011 decision. We’ve reported on the issues and all events regarding its interpretation on a number of occasions.

In 2011 the Department of Justice ruled that the Wire Act applied only to sports betting and not other gambling activities. The Wire Act was passed in 1961 with the aim to prohibit the establishment of certain types of betting operations in the US. We’ll give you a brief overview of the Wire Act and its interpretations over the years.

While in the US, states are looking for ways to regulate sports betting and other forms of gambling, authorities and regulators in the UK are primarily concerned with responsible gambling, i.e. its promotion. We’ve seen numerous responsible gambling initiatives in the past several months, as well as quite a few initiatives aimed at tackling problem gambling. This time it is the Bet Regret GambleAware campaign, or to be more precise its second wave.

A Federal Judge Overruled The DOJ Opinion

When the Wire Act was passed in 1961, nobody could predict the emergence of the internet, let alone the endless opportunities that came with it. The goal of this law was to prevent interstate betting chains, i.e. to enable residents of states where betting is illegal from placing wagers over the phone with betting operators based in states where spots wagering is legal.

Many argued that the Wire Act couldn’t apply to internet betting for the simple reason that there was no internet and therefore no internet betting when it was passed, but others claimed that the logic and the wording of the act made it clear that it also applied to internet betting and all potential forms that involve placing a wager from one state with an operator that’s based elsewhere.

In 2011 the Department of Justice issued an opinion, concluding the Wire Act applied only to sports betting and not other forms of gambling, but in November 2018 it reverted its stance, issuing a second opinion which stated that it also applied to other forms of gambling.

Many states that have already launched initiatives aimed at regulating and enabling gambling operators weren’t too happy about it and wanted to take the Department of Justice to court over the decision.

New Hampshire filed a lawsuit against the DOJ and a federal judge ruled in favour of the state and against the Department. It has just been announced that the Department of Justice is going to appeal the decision which could prolong the whole process for two more years.

Gamble Aware Proceeds With Its Campaigns

The new GambleAware campaign is encouraging punters to think twice before placing a wager, particularly wagers placed while they are drunk, bored or when chasing losses. A survey shows that almost two thirds of all younger punters in the country think that there are too many betting opportunities. The issue of problem gambling was covered by BBC Panorama, earlier this month.

The first wave of the campaign proved to be successful, especially with punters who had shown signs of risky behaviour. The boss of GambleAware stated that the campaign is gaining momentum, adding that the audience is responding positively. GVC Holdings are among the organisations that fund the campaign. GVC Holdings have been quite critical of other operators that in their opinion have not contributed to responsible gambling sufficiently. The latest example of this involves the 32Red Derby County Sponsorship deal.  

New Hot Topic – Loot Boxes And Their Effect

New Hot Topic – Loot Boxes And Their Effect

The UK Parliament, i.e. the Digital, Culture, Media and Sport Committee discussed loot boxes and their status. It appears that lawmakers all agree that loot boxes are gambling and that the Government should take extra measures to ensure that children are protected.

Operators’ Representatives Drilled At Westminster

Operators’ Representatives Drilled At Westminster

Representatives of leading UK gambling and betting operators went to Westminster where they participated in an event organised by the All Party Parliamentary Group that deals with these issues. MPs were pushing for answers as operators were responsive and agreed with many of the points raised by participating MPs.

Universal Self-Exclusion Scheme To Be Approved By The UKGC

Universal Self-Exclusion Scheme To Be Approved By The UKGC

The UKGC is set to endorse Gamstop, a platform that will enable punters to exclude themselves from all betting and gambling sites registered to offer their services in the UK.

Paddy Power To Offer NFL DFS In The UK

Paddy Power To Offer NFL DFS In The UK

A new DFS NFL product to become available in the UK and Ireland, courtesy of Paddy Power. This is the first time of this operator to offer such a product in its homeland of Ireland and the UK.

The Effects Of A No Deal Brexit On Gambling

The Effects Of A No Deal Brexit On Gambling

In the event of a no deal Brexit which seems to be a very likely outcome, UK gambling operators will face serious challenges. Rank Group has already published that it has prepared a Brexit menu which doesn’t include foodstuffs that are imported from the continent.

Football Index Sanctioned By The ASA

Football Index Sanctioned By The ASA

A number of providers have been sanctioned by the UK authorities for failing to act in accordance with industry standards and regulations. This time, it was Football Index that was on the receiving end.