The federal Department of Justice has extended a grace period for enforcing its new opinion on the federal Wire Act—which could threaten interstate lotteries and online gambling—until the end of the year as it evaluates its recent loss recent loss in a New Hampshire lawsuit that challenged the opinion.
The New Hampshire Lottery sued the DOJ saying its recent reversal on the ire act threatened its interstate and online lotteries. A federal judge ruled against the DOJ saying the 1961 act applied only to sports betting where information crosses state lines.
The memo does not say whether the DOJ will appeal the decision, but does extend a period of forbearance—or grace period—for enforcing the opinion from June 14 to December 31.
“On June 3, 2019, a federal district court in New Hampshire issued an opinion holding, inter alia, that Section 1084(a) applies exclusively to sports gambling,” reads the memo as reported by Online Poker Report. “The Department is evaluating its options in response to this opinion. Accordingly, the forbearance period announced in the Deputy Attorney General’s February 28 memorandum is hereby extended from June 14, 2019 to December 31, 2019 or 60 days after entry of final judgment in the New Hampshire litigation, whichever is later.
The memo also says that a delay in potential enforcement is not a “safe harbor” from violations and is instead an exercise of prosecutorial discretion.
