Boost for expanded online poker as DOJ appeal deadline passes
No appeal lodged by Department of Justice on court’s narrow interpretation of Wire Act
A 2021 ruling by the Court of Appeals for the First Circuit on the interpretation of the Federal Wire Act — a 1960s federal statute aimed at curbing organized crime — could have implications for online poker and igaming in the US, as a deadline for the Department of Justice (DOJ) to appeal the ruling has passed.
On January 20, 2021, the court ruled in favour of New Hampshire Lottery that the Wire Act does not apply to non-sports betting wagering activity. The New Hampshire Attorney General’s office had, on behalf of the state’s lottery, challenged the DOJ’s 2018 interpretation that the statute applied to all forms of interstate gambling, including online lottery ticket sales.
The DOJ guidance represented a blow to the Multi-State Internet Gaming Agreement (MSIGA), which had allowed states to create pooled liquidity for online poker.
As of October 2017, Nevada, Delaware, and New Jersey had joined the pact, which established rules and governance procedures for any participating states.
The DOJ’s 2018 opinion thrust into peril any potential expansion of the MSIGA, until the US Court of Appeals for the First Circuit released its opinion in January.
The ruling had a six-month appeal window, and while the Biden Administration wasn’t expected to appeal it, there was nonetheless a haze of uncertainty hanging over the matter.
Now that the deadline has passed, states that have legalized online poker and igaming — namely Michigan and Pennsylvania — could potentially have a pathway to joining Nevada, Delaware, and New Jersey as part of the compact.
888, which is currently the only company operating through the MISGA, plans to expand into Michigan and Pennsylvania in the near future. West Virginia allows for online poker but no operator has launched there thus far.