{"id":96533,"date":"2019-01-18T14:15:49","date_gmt":"2019-01-18T22:15:49","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=96533"},"modified":"2019-01-18T14:15:51","modified_gmt":"2019-01-18T22:15:51","slug":"congress-and-the-wire-act-how-us-legislators-could-affect-the-fate-of-online-gaming","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/congress-and-the-wire-act-how-us-legislators-could-affect-the-fate-of-online-gaming\/","title":{"rendered":"Congress and the Wire Act: How US Legislators Could Affect the Fate of Online Gaming"},"content":{"rendered":"\n

Following the controversy generated this week by the Justice Department (DOJ) in revising its interpretation of the Wire Act<\/a>, there is a chance — however remote — that the 116th Congress could decide to update the 57-year-old far-reaching law that threatens to limit (or even bring down) the American online gaming industry.<\/p>\n\n\n\n

\"\"
The newly sworn-in 116th Congress could choose to affect the future of US online gaming. But will it? (Image: usnews.com)<\/figcaption><\/figure><\/div>\n\n\n\n

Many policy and legal experts say the law could be revised so it is more clear what it specifically covers, especially with the many advances in technology and changes to the US legal betting scene since the 1961 Wire Act was passed by the Kennedy Administration, largely as a reaction to what was then seen as the ominous forces of organized crime, specifically the Mafia.<\/a><\/p>\n\n\n\n

Laurel Loomis\u00a0Rimon — a former Justice Department supervisor who is now senior counsel at Washington, DC law firm O\u2019Melveny & Myers — told Casino.org<\/em> this week that Congress \u201ccan certainly revise the Wire Act to clarify the breadth of the act and whether it applies to non-sports gaming.<\/strong><\/p><\/blockquote>\n\n\n\n

\u201cIt could also modernize the Wire Act\u2019s language to take into account online gaming and modern electronic transmissions,” she added.<\/p>\n\n\n\n

“I think it is likely that there will be a move in Congress to address the arguable ambiguity in the Wire Act with respect to the scope of gambling that is covered, given that there has also been the recent expansion of legalized sports betting, and there are many stakeholders eager to move into online gaming platforms, and many consumers excited about having more options and more convenience in betting,\u201d Rimon opined. <\/strong><\/p>\n\n\n\n

<\/p>\n\n\n\n

But she suspects there could be a \u201cstrong debate\u201d over \u201cconsumer protection issues\u201d related to topics like the \u201cinvolvement of minors and addiction.\u201d<\/p>\n\n\n\n

Defining Terms<\/h2>\n\n\n\n

Michelle Minton, a senior fellow at the Competitive Enterprise Institute who has written extensively about the act, told Casino.org<\/em>, that one \u201csimple\u201d addition Congress could make which would end \u201cmuch of the confusion\u201d is to clarify terminology.<\/p>\n\n\n\n

\u201cAdding definitions for the terms used in the act would clarify to what types of gambling it applies, whether the Internet is included in the term \u2018wire communications,\u2019 and what types of transmissions are considered \u2018interstate,\u2019\u201d she explained. <\/p>\n\n\n\n

\u201cFor example, UIGEA [the Unlawful Internet Gambling Enforcement Act of 2006] expressly determines interstate transmissions based on the state in which the transmission was initiated and where it was received. As currently written, one could interpret the Wire Act as classifying transmissions made and received in the same state as \u2018interstate\u2019 if the data, at any point, was routed outside of the state,\u201d she clarified.<\/p><\/blockquote>\n\n\n\n

Here is how Minton says she would re-write the act\u2019s first paragraph:<\/p>\n\n\n\n

(a)\nWhoever being engaged in the business of betting or wagering knowingly uses a\nwire communication facility for the transmission in interstate or foreign\ncommerce of sport-related bets or wagers, information assisting in the placing\nof such bets or wagers, communications which entitles the recipient to receive\nmoney or credit as a result of such bets or wagers or which entitles the\nrecipient to receive money or credit as a result of information assisting in\nthe placing of such bets or wagers, shall be fined under this title or\nimprisoned not more than two years, or both.<\/em><\/p>\n\n\n\n

<\/p>\n\n\n\n

\u201cThis would make the second paragraph much more clear in its purpose to protect media reporting on sporting events and transmissions related to sports gambling when the activity is legal in the states where it occurs,\u201d Minton said.<\/p>\n\n\n\n

When asked for his outlook, G. Robert Blakely — a law professor at Indiana’s University of Notre Dame and an acknowledged scholar on 1970’s Racketeer Influenced and Corrupt Organizations Act (RICO), noted that “the Wire Act is indeed old.<\/p>\n\n\n\n

\u201cIt was enacted to parallel the mail fraud act,\u201d Blakely told Casino.org<\/em>. \u201cCongress has no general criminal power. Federal crimes are tied to federal powers. That is the mail (mail fraud) interstate communications (wire fraud) or interstate travel (travel act). They are three ways to get at fraud. Other statutes cover other frauds (securities fraud, SEC). <\/p><\/blockquote>\n\n\n\n

\u201cThey have never been aimed [at] organized crime in the of sense the mob only. They \u2026 apply to \u2018any person\u2019 who mails a letter, makes an interstate phone call, or travels across state lines pursuant to a \u2018scheme to defraud.\u2019 The phrase applies widely. Originally, it meant trying to cheat someone. It came also to include bribery, then kickbacks, etc. It is \u2026 open-ended. The acts have been a mainstay of federal law enforcement.\u201d<\/p>\n\n\n\n

Stalemate Realities<\/h2>\n\n\n\n

But political realities could restrain what Congress — and the White House — could accomplish vis-a-vis the act. <\/p>\n\n\n\n

\u201cIt is always a good idea for Congress to look and see what [the] DOJ does with any statute,\u201d Blakely told Casino.org<\/em>. \u201cBut with this Congress and president, I am reluctant to say anything. They cannot agree to keep the store open,” he said, referring to the current government shutdown<\/a>. <\/p>\n\n\n\n

“Talking about whether the store is selling the right kinds of things seems almost silly \u2026 but until we get the store open, it is fruitless talking about much else,\u201d he noted.<\/p>\n\n\n\n

Beyond that, if Congress tried to update the act, one person who may have a lot of clout over the process is the current chairman of the Senate Judiciary Committee, Lindsey Graham (R-South Carolina). This week, he praised the DOJ\u2019s new opinion on the Wire Act, saying, in part, it \u201ctakes great strides to protect children and society\u2019s most vulnerable.\u00a0 It will also be a blow to criminal elements that tried to take advantage of the failed Obama policy.\u201d<\/p>\n\n\n\n

Earlier, Graham was a co-sponsor of a bill called the Restoration of America\u2019s Wire Act (RAWA)<\/a>. Casino.org<\/em> has previously reported that the proposal \u201cwould effectively ban all forms of online gambling at a federal level, apart from horse racing betting and fantasy sports.\u201d<\/p>\n\n\n\n

Casino magnate and Republican megadonor Sheldon Adelson — an outspoken proponent of the move to ban online gambling and a major RAWA supporter<\/a> — has also donated to Graham\u2019s past political campaigns.<\/p>\n\n\n\n

History of the Wire Act: RFK\u2019s Attack on Mob Crime<\/strong><\/p>\n\n\n\n

Originally, the enactment of the Wire Act was seen as part of the Kennedy Administration\u2019s many initiatives against organized crime. Much of it was led by then-Attorney General Robert Kennedy, brother to then-President John F. Kennedy.<\/strong><\/em><\/p>\n\n\n\n

\u201cBobby organized the most extensive campaign against organized crime in American history,\u201d Larry Tye, author of the new bestseller Bobby Kennedy: The Making of a Liberal Icon, told Casino.org.\u00a0[He\u00a0would\u00a0probably\u00a0be]\u00a0“shocked, I think, about most everything the Trump Justice Department is doing,” Tye added.<\/strong><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Following the controversy generated this week by the Justice Department (DOJ) in revising its interpretation of the Wire Act, there is a chance — however remote — that the 116th Congress could decide to update the 57-year-old far-reaching law that threatens to limit (or even bring down) the American online gaming industry. Many policy and […]<\/p>\n","protected":false},"author":44,"featured_media":96540,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[19,60,13,61,13592],"tags":[],"acf":[],"yoast_head":"\nCongress and Wire Act: How Legislators Could Affect Fate of Online Gaming<\/title>\n<meta name=\"description\" content=\"Casino.org spoke with several experts about how the 116th Congress might choose to reword the Wire Act or better define its scope, but whether that's likely to happen is a remore possibility.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/congress-and-the-wire-act-how-us-legislators-could-affect-the-fate-of-online-gaming\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Congress and Wire Act: How Legislators Could Affect Fate of Online Gaming\" \/>\n<meta property=\"og:description\" content=\"Casino.org spoke with several experts about how the 116th Congress might choose to reword the Wire Act or better define its scope, but whether that's likely to happen is a remore possibility.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/congress-and-the-wire-act-how-us-legislators-could-affect-the-fate-of-online-gaming\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2019-01-18T22:15:49+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-01-18T22:15:51+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2019\/01\/116th-Congress-Wire-Act-impact.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"640\" \/>\n\t<meta property=\"og:image:height\" content=\"420\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Ed Silverstein\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@casinoorgedsilv\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Ed Silverstein\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/congress-and-the-wire-act-how-us-legislators-could-affect-the-fate-of-online-gaming\/\",\"url\":\"https:\/\/www.casino.org\/news\/congress-and-the-wire-act-how-us-legislators-could-affect-the-fate-of-online-gaming\/\",\"name\":\"Congress and Wire Act: How Legislators Could Affect Fate of Online Gaming\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/congress-and-the-wire-act-how-us-legislators-could-affect-the-fate-of-online-gaming\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/congress-and-the-wire-act-how-us-legislators-could-affect-the-fate-of-online-gaming\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2019\/01\/116th-Congress-Wire-Act-impact.jpg\",\"datePublished\":\"2019-01-18T22:15:49+00:00\",\"dateModified\":\"2019-01-18T22:15:51+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/b3771b02527bcbda9af984b9b1ff098e\"},\"description\":\"Casino.org spoke with several experts about how the 116th Congress might choose to reword the Wire Act or better define its scope, but whether that's likely to happen is a remore possibility.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/congress-and-the-wire-act-how-us-legislators-could-affect-the-fate-of-online-gaming\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/congress-and-the-wire-act-how-us-legislators-could-affect-the-fate-of-online-gaming\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/congress-and-the-wire-act-how-us-legislators-could-affect-the-fate-of-online-gaming\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2019\/01\/116th-Congress-Wire-Act-impact.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2019\/01\/116th-Congress-Wire-Act-impact.jpg\",\"width\":640,\"height\":420,\"caption\":\"The newly sworn-in 116th Congress could choose to affect the future of US online gaming. 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