Department of Justice to defer Wire Act enforcement until 2020

The US Department of Justice will wait until 2020 before looking to enforce its reinterpretation of the Wire Act, according to a new document circulated by the department.

In a memorandum to all employees, the DOJ extended its so-called “forbearance period” announced earlier this year to 31 December, pending receipt of a final decision from the New Hampshire District court.

It follows the New Hampshire Lottery Association’s victory against the DOJ in court earlier this month. The Association had successfully argued that the Wire Act is limited to sports wagering and that state lottery and vendors were exempt from the act.

The case, brought against US Attorney General William Barr by the New Hampshire Lottery Commission, sought an injunction on the DOJ’s 2018 Wire Act opinion which stated the act applied to all forms of online gambling.

Several sources have said the DOJ will appeal the decision, but the memorandum states that the department is currently “evaluating its options” before doing so.

The decision will come as a relief to many regulators and operators, who faced a race against time to comply with the new interpretation. However, the DOJ has said that this decision does not create a “safe harbour” for operators in violating the Wire Act.

The memorandum closes, adding that: “All other provisions of the January 15, February 28, and April 8, 2019 memoranda remain in effect.”