January 4, 2012

U.S. DOJ reverses position on Internet Gambling

Just before Christmas, the U.S. Department of Justice (DOJ) changed its position on Internet gambling. The DOJ sent a letter to Senate Majority Leader Harry Reid and Senator Jon Kyl along with a DOJ Office of Legal Counsel opinion that concluded the Wire Act (18 USC § 1084) only applies to sports betting.

The DOJ previously interpreted the Wire Act to prohibit all internet gambling, but this opinion specifies it only applies to sports betting.

Even though the opinion specifically answers Illinois and New York’s question on the legality of online lottery ticket sales, the conclusion will also allow other forms of intrastate online gambling, including poker.