{"id":106359,"date":"2019-06-05T13:09:18","date_gmt":"2019-06-05T20:09:18","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=106359"},"modified":"2019-06-05T13:09:18","modified_gmt":"2019-06-05T20:09:18","slug":"gaming-lawyers-praise-new-hampshire-court-ruling-on-wire-act-but-identify-decisions-limitations","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/gaming-lawyers-praise-new-hampshire-court-ruling-on-wire-act-but-identify-decisions-limitations\/","title":{"rendered":"Gaming Lawyers Praise New Hampshire Court Ruling on Wire Act But Identify Decision\u2019s Limitations"},"content":{"rendered":"

Lotteries and online casino operators are far less likely to face prosecution after a New Hampshire federal judge this week rejected an expanded Department of Justice (DOJ) interpretation of the Wire Act. But gaming attorneys caution there remain numerous unanswered questions.<\/p>\n

\"\"
U.S. District Court Judge Paul Barbadoro’s ruling in a New Hampshire lottery case on the Wire Act was praised by many gaming attorneys. But further issues remain. (Image: YouTube)<\/figcaption><\/figure>\n

In his decision released on Monday, U.S. District Court Judge Paul Barbadoro<\/a> clearly ruled that the federal Wire Act \u201cis limited to sports gambling.\u201d He also agreed with many of the arguments raised by attorneys for the New Hampshire state lottery<\/a> and its operators, which brought the lawsuit against the DOJ.<\/p>\n

Their court action challenged the DOJ\u2019s Office of Legal Counsel\u2019s (OLC) 2018 controversial reinterpretation of the 1961 law. For years, the DOJ held the law applied only to sports betting.<\/p>\n

Many gaming lawyers also predict there is a high possibility Barbadoro\u2019s decision will be appealed by the DOJ. A Justice Department spokesman said the DOJ is reviewing the ruling.<\/p>\n

For now, it has impact for an extended time. An appeal of the New Hampshire case to the First Circuit Court of Appeals would take a year or more — and it is even longer to get a response from the U.S. Supreme Court, just to see if the justices want to accept the case.<\/p>\n

The appellate process should last longer than the first term of the Trump administration,\u201d Daniel Wallach, a Florida-based gaming lawyer who co-founded the University of New Hampshire Law Sports Wagering & Integrity Program, told Casino.org<\/em>. That may make it a \u201cguardrail\u201d against prosecution for the next year or two and it will become, in effect, a \u201cde facto injunction\u201d during the rest of the president\u2019s first term, he added.<\/p><\/blockquote>\n

Lotteries, State Governments Express Relief<\/h2>\n

\u201cAlthough the ruling technically only applies to New Hampshire, I think all states who count on lottery profits for their budgets can breathe a sigh of relief,\u201d Steven Silver, a sports law attorney at Maine\u2019s Ogletree Deakins, told Casino.org<\/em>.<\/p>\n

UNLV Law Professor Tony Cabot adds the ruling is also \u201csignificant\u201d for multi-state lotteries, as well as online poker and casino games.<\/p>\n

\u201cIf, as the court decided, the Wire Act does not apply to them, then the states can authorize online gaming on these activities,\u201d Cabot told Casino.org<\/em>.<\/p>\n

Also, a state \u201ccan enter interstate compacts\/agreements — multi-state lotteries and poker liquidity agreements — \u2026 as long as it is lawful in both states,\u201d Cabot advised.<\/p>\n

\n

\u201cThis is Christmas come early for online poker,\u201d Silver additionally commented. \u201cI have to imagine that this ruling paves the way for new interstate poker compacts. It also likely helps states that have been sitting on the sidelines in terms of online gaming to start moving forward.\u201d<\/p>\n<\/div>\n

That means there could be more investment in online gaming operations, according to Stephen Schrier, a Philadelphia attorney, who co-chairs Blank Rome\u2019s gaming practice and is chair of the firm\u2019s sports practice group.<\/p>\n

\u201cThe court\u2019s decision is helpful to online casino gaming and poker because the Wire Act has been eliminated as a possible basis for finding their intra-state operations to be violative of federal law,\u201d he told Casino.org<\/em>. \u201cMany states and operators were awaiting word on this case before proceeding further.\u201d<\/p>\n

But even with compliments from gaming lawyers for the judge\u2019s decision, there are still \u201cunanswered questions,\u201d Wallach confirmed.<\/p>\n

Intermediate Routing<\/h2>\n

For instance, the decision does not address \u201cintermediate routing\u201d in intrastate sports betting. This is where even if bets are placed in the same state and the server is in the same state — signals can still travel across state lines, Wallach explained.<\/p>\n

That is because the \u201cdata \u2026 sent between the bettor and sportsbook may travel out-of-state in order to find the most efficient path of communication,\u201d Keith Miller, a gaming law professor at Drake University, told Casino.org<\/em>. Under the 2018 OLC opinion, \u201cthat could still amount to an interstate transmission subject to the Wire Act,\u201d he explained.<\/p>\n

The language used in the New Hampshire ruling raises some other issues, too. John T. Holden, a sports law specialist and professor at Oklahoma State University, told Casino.org<\/em> \u201cthe implications of this case are far bigger than the Wire Act.\u201d<\/p>\n

\u201cThe question over whether an OLC opinion is a final judgment under the Administrative Procedures Act could have broad implications, which the government may wish to protect by appealing this case,\u201d Holden explained. Another possible concern to the DOJ relates to whether a party has standing to file a suit.<\/p>\n

\u201cThe scope of the Wire Act may actually be of secondary importance to the Department of Justice, at least in comparison to the other issues this case raises,\u201d Holden warned.<\/p>\n

The New Hampshire ruling also opens \u201cthe door for states with iGaming to bring their own lawsuits and try to make the hole in the 2018 opinion a little bigger,\u201d Holden added.<\/p>\n

This decision in all likelihood is the first small step in what will be litigation that is protracted over many years so I would caution anyone about getting too excited about it just yet,\u201d Holden cautioned.<\/p><\/blockquote>\n

Another criticism comes from Silver who noted \u201cthe court\u2026 stopped short of issuing a nationwide injunction or declaratory relief.\u201d<\/p>\n

“If you are going to set aside the DOJ opinion and grant relief that extends beyond New Hampshire\u2019s borders to parties who operate in multiple states, then it is somewhat bizarre that we did not see some sort of national relief here,\u201d Silver said.<\/strong><\/p>\n

But Matthew D. McGill, an attorney from Gibson Dunn, which represented New Hampshire lottery operator NeoPollard Interactive, said in a statement, the ruling \u201csafeguards the New Hampshire Lottery and its service providers from the threat of unlawful prosecution.\u00a0And \u2026 this ruling has nationwide impact.\u201d<\/p>\n

Yet, the Coalition to Stop Internet Gambling released a statement that \u201cother jurisdictions will see this issue very differently.”<\/p>\n","protected":false},"excerpt":{"rendered":"

Lotteries and online casino operators are far less likely to face prosecution after a New Hampshire federal judge this week rejected an expanded Department of Justice (DOJ) interpretation of the Wire Act. But gaming attorneys caution there remain numerous unanswered questions. In his decision released on Monday, U.S. District Court Judge Paul Barbadoro clearly ruled […]<\/p>\n","protected":false},"author":44,"featured_media":106360,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[60,13699],"tags":[],"acf":[],"yoast_head":"\nGaming Lawyers Praise New Hampshire Court Ruling on Wire Act But Identify Decision\u2019s Limitations - Casino.org Gaming Lawyers Praise New Hampshire Court Ruling on Wire Act But Identify Decision\u2019s Limitations<\/title>\n<meta name=\"description\" content=\"Lotteries and online casino operators are far less likely to face prosecution after a New Hampshire federal judge this week rejected an expanded Lotteries and online casino operators are far less likely to risk prosecution after a New Hampshire federal judge this week rejected an expanded Department of Justice interpretation of the Wire Act. 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