This Week in Gambling: Wire Act and coronavirus news

What an interesting week of gambling news. First, the coronavirus pandemic has affected the global economy, and naturally casinos have been hit hard. Also, an update on the Department of Justice Wire Act case, as New Jersey has now joined the fight.

New Jersey Attorney General Attorney General Gurbir Grewal has filed an amicus brief setting out the state’s opposition to the US Department of Justice’s (DoJ) reinterpretation of the 1961 Wire Act, arguing federal law permits most forms of online wagering. Grewal filed the new amicus brief with a First District Federal Court of Appeals in response to the DoJ’s appeal against a New Hampshire Court decision that struck down its revised stance on the Act, published in January 2019.

The DoJ’s revised stance said that the Wire Act’s prohibition applies to all forms of gambling and not just sports betting, thus reversing a 2011 ruling. The opinion came following a request from the DoJ’s Criminal Division to reconsider the 2011 ruling, which paved the way for the roll-out of online gambling in a number of states. At the time, this prompted a robust response from Grewal, who argued that it appeared to have been influenced by anti-igaming lobbyists.

The New Hampshire Lottery Commission filed a lawsuit challenging the opinion, and prevailed in District Court in June 2019. Judge Paul Barbadoro rejected the DoJ Office of Legal Counsel’s 2018 opinion that claimed the Act covered all forms of gambling. Judge Barbadoro also rejected the DoJ’s argument that New Hampshire had no grounds to file the case, as the revised opinion had not yet been enforced. The D0J in August 2019 said that it would appeal against the ruling, filing a notice to appeal with the US Court of Appeals for the First Circuit.



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