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ARTICLE · 23 JANUARY 2019

DOJ Reshuffles The Deck On Online Gaming

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The Wire Act, originally created in 1961, prohibits the use of wire communication facilities1 to send bets, information assisting in placing bets, or money or credit resulting from those bets internationally or between states.

United StatesMedia, Telecoms, IT, Entertainment

Key Points

  • On January 14, 2019, the U.S. Department of Justice released a November 2, 2018, opinion from its Office of Legal Counsel reversing previously issued guidance under the Obama Administration that interpreted the Wire Act to exclude non-sports-related gambling.
  • The new opinion parses the syntax of the Wire Act's leading provision—Section 1084(a)—to determine that the phrase "on any sporting event or contest" modifies just one of the four prohibitions outlined in that section.
  • Deputy Attorney General Rod Rosenstein has instructed Department of Justice attorneys to refrain from applying the new guidance for 90 days to allow businesses to bring their operations into compliance.

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