On December 23, 2011, the Justice Department changed its opinion on the Federal Wire Act, which led to growth in online wagering across the United States. Unfortunately for some, this has only led to online wagering for state-run online lotteries, but not for poker or other casino games.
Just last year, Georgia, Michigan, and Minnesota began selling state lottery tickets over the Internet. Over a dozen states offer a one form or another of internet lottery capabilities. North American research director for GamblingCompliance expects Kentucky to start selling lottery tickets online as well.
While online lotteries flourish, states offering Internet casino gaming, Nevada, New Jersey, and Delaware have not been meeting expectations. One of the three online poker sites offered in Nevada shut down last December, Ultimate Gaming.
New Jersey’s Internet gaming revenue for 2014 was projected at over $1 billion by Governor Chris Christie, but fell way short, hauling in $122.8 million in revenue for the year. Two sites connected to Atlantic City casinos also shut down operations last year.
For 2014, the total internet figure for lottery ticket sales made up less than 1 percent of the $70.15 billion in total lottery sales in the United States. “It wasn’t a floodgate like most people thought it would be. It was more like a trickle gate. States move at a very slow and deliberate pace,” said Charlie McIntyre, executive director of New Hampshire Lottery.
“States will come online, but it will be slow,” said McIntyre. “The states are never going to do something that will hurt sales by brick-and-mortar stores.” The latest move by Congress looks to restore the Wire Act’s previous ban on Internet wagering, with legislation introduced by Republican Representative Jason Chaffetz of Utah, on February 4.
The same bill was introduced a year ago, but fell flat dead after heated opposition from lotteries and legislators, who claimed the bill infringed on “sovereignty” of individual states if they want to take part in online gaming. However, this year’s bill will see additional support, most notable from Las Vegas Sands Corp. Chairman Sheldon Adelson, who has vowed to spend any amount of money to ban internet gaming.
