The Department of Justice is trying to get its way with the Wire Act after New Hampshire District Court Judge Paul Barbadoro ruled the 1961 Wire Act only applies to interstate sports betting but not online lottery sales or online casinos. The DOJ issued a notice of appeal last week of that decision.
The decision came after the DOJ issued a memo in 2018 that contradicted a 2011 memo that said the Wire Act only applies to sports betting. Since 2011, five states have approved iGaming and several more have legalized online sales of lottery tickets. New Hampshire initiated the suit after the 2018 memo seemed to shut down its approval of online lottery products.
The appeal was not unexpected. Jeff Ifrah, an attorney with vast experience with iGaming and founder of the online gaming lobby, IDEA Growth, issued a statement, saying while not unexpected, the appeal is unwarranted.
“The DOJ generally files appeals of adverse district court decisions as a matter of course,” he said. “We hope that, rather than engaging in a protracted, expensive and ultimately unsuccessful legal fight, the department will take this opportunity to negotiate a settlement which will focus the Wire Act and DOJ’s enforcement resources on the right targets—the unlicensed illegal offshore Internet gambling operators who do not create jobs or tax revenue in the U.S. and do not appropriately protect consumers.”
The appeal means that the First Circuit Court of Appeals will consider hearing the case. The court doesn’t meet until early October.
