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Three Point Shot, a newsletter brought to you by the Sports Law Group at Proskauer.
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Edited by Win-Time for the Online Gaming Industry in Wire Act Ruling Luck Yeah! The New Hampshire Lottery Commission ( NHLC ), along with its service providers, NeoPollard Interactive LLC and Pollard Banknote Limited (collectively, NeoPollard ), recently prevailed against the U.S. Department of Justice ( DOJ ), when the U.S. Court of Appeals for the First Circuit affirmed a narrow reading of the Wire Act, 18 U.S.C.§ 1084, to apply only to interstate transmissions related to bets or wagers on sporting events and not to the state lottery and online gaming operations of NHLC. (
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On the first day of the Biden administration, the US Court of Appeals for the First Circuit confirmed that state-run intrastate online lotteries may continue to operate, consistent with the US Department of Justice s guidance during the Obama administration, which the DOJ had withdrawn and reversed in 2018.
2 Forty-five states, the District of Columbia, Puerto Rico, and the US Virgin Islands have authorized lotteries, as well as New Hampshire, whose lottery commission was a claimant in the First Circuit case. The First Circuit s opinion gives comfort to those state-run lotteries already operating online, as well as their service providers around the world, to continue operating without fear of criminal exposure under the 1961 Wire Act. In addition to removing that significant criminal enforcement risk, the decision may signal momentum for significant growth in the gambling industry despite some continuing limitations to
Posted by: KHTS Articles in News Articles January 29, 2021 - 9:10 am
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Landmark Ruling for US Online Casino Prospects
You might have realized that there are some states where residents are allowed to play at online casinos. Years ago, this was not possible and the federal government cracked down hard on online poker operators in the early-2000s by invoking the 1961 Wire Act. However, the situation is changing and the emergence of states with legal casino sites could soon break the flood gates and lead to regulation across the entire nation.
Resolution in Wire Act Dispute
While under the Obama administration, the Department of Justice’s (DOJ) Office of Legal Counsel (OLC) issued a controversial opinion in 2011. Back then, the OLC stated that the 1961 Wire Act, which was been used to proclaim the illegality of online gambling at the federal level, only applies to sporting events and not online gambling.
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WHAT: According to the U.S. Court of Appeals for the First Circuit (First Circuit), the Federal Wire Act’s criminal prohibitions are limited to sports wagering activity only.
WHEN: On January 20, 2020, in
New Hampshire Lottery Commission v. Rosen, No. 19-1835, 2021 WL 191771 (1st Cir. Jan. 20, 2021), the First Circuit disagreed with the U.S. Department of Justice (DOJ) Office of Legal Counsel s (OLC) most recent interpretation of the Wire Act and declared that the Wire Act does not apply to non-sports wagering.
WHAT DOES IT MEAN FOR THE INDUSTRY: The First Circuit’s decision comes on the heels of years of uncertainty surrounding the scope of the Wire Act and means that state lotteries and online gambling companies in Maine, Massachusetts, New Hampshire, Puerto Rico, and Rhode Island can offer non-sports wagering (e.g. casino-style games) on the internet without fear of facing criminal liability under the Wire Act
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First Circuit Court of Appeals Decision Saves Millions in Annual Funding for Schools, First Responders
First Circuit Court of Appeals Decision Saves Millions in Annual Funding for Schools, First Responders Contact: Ryan Jarvi 517-599-2746Agency: Attorney General
January 22, 2021
LANSING – Millions of dollars in annual funding for Michigan schools and first responders derived from lottery revenues have been preserved by a federal First Circuit Court of Appeals decision in the case
New Hampshire Lottery Commission, et. al. v. United States Department of Justice, et. al., Michigan Attorney General Dana Nessel announced today.
In agreeing with the lower court’s ruling, the First Circuit Court on Thursday ruled that the U.S. Department of Justice’s (DOJ) interpretation of the Wire Act was incorrect and that the law should be construed to only prohibit interstate wire communications of sports-related bets.