Wire Act Only Applies To Sports Betting Now

Last week the Department of Justice (DOJ) gave online poker players reason to be excited as they made specific note to mention that the Wire Act applies only to sports betting.

“The Department of Justice’s view is and has been for some time that all forms of internet gambling, including sports wagering, casino games and card games, are illegal under federal law. While many of the federal statutes do not use the term ‘internet gambling,’ we believe that the statutory language is sufficient to cover it,” then U.S. Attorney Catherine Hanaway told Congress. “As we have stated on previous occasions, the department interprets existing federal statues, including 18 U.S.C. Sections 1084, 1952, and 1955, as pertaining to and prohibiting internet gambling.”

But last week, that all changed.

“The Department’s Office of Legal Counsel has analyzed the scope of the Wire Act, 18 U.S.C Section 1084, and concluded that it is limited only to sports betting,” Deputy Attorney General James Cole wrote in a letter to the two states.

Combine last weeks announcement that internet poker was made legal in Nevada with the statement from the DOJ above and you can see why online poker players (and websites) would have reason to think positively about their future.

While Nevada will be the first state allowed to have legal online poker, it’s hard to imagine that once Nevada residents work out the kinks that the rest of the country won’t be allowed to join in the fun.

I give the DoJ and poker companies until the beginning of 2013 to work out any problems with legal online poker in Nevada before opening it up to the rest of the country.

As a sports better I’m guessing that we won’t see legal, nation-wide sports betting until 2014 or 2015. The government isn’t too good at acting on more than one thing at a time.