New opinion on the wire act due from U.S. justice department?

Hot on the heels of Friday’s introduction to the US Congress of Senator Chuck Shumer and Senator Orrin Hatcn’s bill attempting to get the federal government involved in the regulation of US sports betting (see previous report) the message boards and online media lit up with unconfirmed reports that the Department of Justice’s Office of Legal Counsel will soon issue a new opinion on the Wire Act.

Our readers will recall that seven years ago the OLC issued a surprise opinion which had massive influence on the internet gambling industry and states’ rights to make laws regarding gambling within their borders at state level…that the antiquated 1961 Act applied only to sports betting.

It led to extended legal and political confrontations, but opened up online gambling and subsequently sports betting on an intrastate basis, generating revenues approaching the billions for state governments that had the foresight to accept the reality of online gambling and passing state laws permitting its licensing and regulation.

Why the OLC should issue a further opinion is the subject of speculation in the absence of official confirmation and some indication of content – both so far missing.

Various publications are reporting on the OLC rumour, claiming that a statement is imminent and discussing possible content.

States that have taken this step and prospered from it have so far not reacted, but former New Jersey senator Raymond Lesniak, who fought hard for his state’s successful regulated online gambling regime, has already been characteristically outspoken, commenting Wednesday:

“Whenever Congress, whether it’s Democrat or Republican, tries to get their hands in on the state’s business, I have great concerns. When they do things hand-in-hand (a reference to federal politicians working with bodies like the sports leagues), I get very, very troubled. I would expect that the New Jersey delegation, which is very powerful, would stand up to protect New Jersey’s interest.”

In the publication PlayNJ, veteran industry writer Steve Ruddock quotes the Online Poker Report’s breaking story on the OLC rumour, noting that the 2011 OLC opinion was in response specifically to questions asked regarding state lotteries’ right to sell lottery products over the internet within their state boundaries, but paved the way for the three states that pioneered legalisation – Delaware, Nevada and New Jersey – to pass and fight their laws through the courts.

Online Poker Report claimed that the OLC opinion “could” effectively reverse the 2011 opinion, which continues to be a thorn in the side of politicians reportedly influenced by political donations from multi-billionaire land casino owner and declared arch-enemy of online gambling, Sheldon Adelson.

Ruddock also points to the need for clarification by the OLC of its intentions and opinion now that the rumour is gaining traction; he points to a view expressed by Gambling Compliance writer Chris Krafcik that the opinion “…could spook already skittish US financial giants into declining online gambling transactions in intrastate markets. It’s taken years for these states to convince card-issuing banks that the transactions are legit, and the loss of these payment options would not go unnoticed.”

Assuming the rumoured new OLC opinion is about to be released, one question that presents itself is whether the avowed anti-online gambling former US Attorney General Jeff Sessions is the man behind it (in which case it’s hardly likely to be a positive development to the online industry).

Despite an undertaking made under pressure from Senator Lindsey Graham at his confirmation hearing that he would revisit the 2011 OLC opinion, Sessions had not overtly taken any action on the issue as far as is known prior to his firing last month by President Donald Trump.

The AG shop is currently in te hands of action AG Matthew Whittaker, who would presumably be loath to take such a far-reaching decision in the absence of a permanent AG (Trump’s latest nominee William Barr has yet to run the gauntlet of confirmation hearings.)

Read more about it here

Related and similar