There is a pending lawsuit against the United States Department of Justice over a previous administration’s interpretation of the Wire Act, coupled with recent developments in Michigan’s rollout of online poker, signals a shift in legal tides that could significantly increase the number of players in online poker pools.
Here’s a look at the states in the United States that currently offer legalized online gambling in some capacity:
- West Virginia
- Pennsylvania
- New Jersey
- Nevada
- Delaware
- Michigan
Nearly every poker player the US is familiar with the Interstate Wire Act of 1961, a federal law prohibiting interstate wagering. While there have been various rulings and opinions as to whether the law applies to online poker and other forms of gambling, a 2011 ruling by the Department of Justice (DOJ) under President Barack Obama determined that the Wire Act only applies to sports betting.
However, in 2018, the DOJ under President Donald Trump reversed its position by issuing an opinion stating that the Wire Act does indeed apply to all forms of gambling, including casino games, lotteries, and, you guessed it, poker.
The reversed opinion, which has been tied to the late Sheldon Adelson, a Republican megadonor primary opponent of online gambling, created headache and confusion in the gambling industry and left states looking to or in the process of legalizing online gambling in murky waters.
New Hampshire took the DOJ to court over the issue and, in June 2019, the Federal District Court ruled against the 2018 DOJ interpretation of the Wire Act, meaning that online lottery and poker do not violate U.S. law.
The 2019 ruling was later upheld by the US District Court after the DOJ unsuccessfully appealed the case, asreported in January 2021. Then, the justice department let a June 2021 deadline to appeal the decision with the Supreme Court pass and stated that “the government is not planning to seek Supreme Court review of the First Circuit’s decision.”
While the District Court's upholding of the narrow interpretation of the Wire Act was widely viewed as a big victory for the online poker and gambling industries, the DOJ’s refusal to formally abrogate its 2018 opinion has left plenty of room for worry and uncertainty among stakeholders and players.
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