The Federal Wire Act

The online gaming industry has been on red alert after official comments were made regarding interpretations of the 1961 Wire Act. These official comments came from the Department of Justice and this is why everyone is talking about it. But just what is the Federal Wire Act? Well for starters the real name of the Federal Wire Act is the Interstate Wire Act and is was first passed in 1961. It is a United States federal law that outlines the prohibition of certain types of betting businesses in the United States.

As you can imagine the Interstate Wire Act is a quite an extensive document and therefore it is easy to imagine that parts of it could be open to misinterpretation. Just recently the Department of Justice (DOJ) formally released an opinion on the Act concluding that, “Interstate transmissions of wire communications that do not relate to a sporting event or contest fall outside the reach of the Wire Act.” The U.S Fifth Circuit Court of Appeals has ruled that the acts prohibition on the transmission of wagers only applies to sports betting and not any other type of online gambling.

This announcement has set the cat amongst the pigeons and online gambling establishments such as casinos and poker rooms start to wonder whether or not they can start offering games to the public on Unites States soil. Given the recent action taken against poker companies in the wake of Black Friday, it would be sensible to keep the powder dry until the Supreme Court makes a ruling on this one.