Casino Watch Focus has reported on the Department of Justice’s reversal of the Wire Act and that decision’s impact on online gambling. Many said lawsuits would be the deciding fact as to whether or not they could reverse the out of place Obama Administration’s reinterpretation of the wire act, which lead to the massive expansion of online gambling. One area of concern for states has been the impact on state lotteries, specifically where those state offer online access to their lotteries. The DOJ recently extended the deadline as they wanted to more closely examine the full range of its ruling. The DOJ is now seeking a motion to dismiss a lawsuit brought by New Hampshire claiming they don’t have standing to sue yet and that the state hasn’t proven that the ruling would even impact them. The Associated Press explains:
The U.S. Justice Department says in a federal court brief that the New Hampshire Lottery Commission has failed to demonstrate that it wouldn’t be immune from 1960s law enacted to crack down on the mob.
On Thursday, the Justice Department filed the brief in Concord, New Hampshire, in response to a judge’s order for it to clarify its interpretation of the Wire Act. States fear losing at least $220 million annually in lottery profits if the Wire Act is determined to apply to all forms of gambling that crosses state lines.
The department also affirmed any early promise to not prosecute state lotteries or their vendors while it continues to review whether the Wire Act applies to lotteries.
The concern goes beyond the state of New Hampshire. Several states offer online access to their lotteries and some lotteries extent to multiple states. Some believe the intent of the DOJ isn’t to stop lotteries, as Powerball and Mega Millions are too engrained as a societal norm, but the actual transactions might very well fit the original 1960 Wire Act. An online source explains:
The states are anxiously waiting on a clarification from the Justice Department about its opinion that, if strictly interpreted, would outlaw lottery tickets sold online and prohibit all lottery-related activities that use the internet. Legal experts say Powerball and Mega Millions are at risk if the opinion is read to the letter, which would cost the states billions.
Seven states now sell lottery tickets online and others offer residents internet-based lottery subscription services.
When state lotteries use the internet to transmit data for online ticket sales, the network signal can cross state lines, and games that are played in multiple state s, like Powerball and Mega Millions, transmit data to a central database out of state, according to the North American Association of State and Provincial Lotteries.
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