The US Court of Appeals for the First Circuit has issued a ruling upholding a 2011 interpretation of the Federal Wire Act of 1961 that limits the scope of the Act to sport betting only. It’s a major decision that negates the dark legacy of a twice-impeached Florida man who pushed to expand the Act at the behest of the late Sheldon Adelson. It’s also a decision that could greatly expand the scope of online gambling in the United States.
The original ruling limiting the scope of the Act to sports betting came in 2011 and was seen as an opportunity for states to expand their online poker and lottery operations. For seven years, it worked relatively well and opened new markets for interstate lotteries in particular. But that kind of open commerce and “free trade” didn’t sit well with the late casino magnate and online gambling hater, Sheldon Adelson. Adelson was always afraid that online gambling would eat into his casino business, so he hit up the man who was President of the United States in 2018 to reverse the 2011 decision and prevent interstate online gambling as much as possible.
That decision was challenged by the New Hampshire Lottery Commission, who thought the decision would completely destroy the lucrative interstate lottery business. The two-judge panel agreed with New Hampshire and overturned the 2018 interpretation. This isn’t just good news for sports betting and lottery operators, it’s also really good news for online poker operators.
Of course the Department of Justice has the option to challenge the ruling, but that seems unlikely given that the Florida man is no longer President and the current US President Joe Biden, was never beholden to Adelson anyways. So look forward to some big moves on the interstate US online gambling front as a result of this decision.