Effect of Monday’s Reinterpretation of the Wire Act on the Gambling Industry
This past Monday, the U.S. District Court for the District of New Hampshire made a decision about the Interstate Wire Act. Basically, they said it applies only to “activities associated with sports gambling”. Thus it does not affect the interstate sale of online lottery tickets. Now gambling experts have their take on the Affects of Monday’s Reinterpretation of the Wire Act on the Gambling Industry
Over the years, the 1961 Wire Act has had several different reinterpretations depending on the current U.S. administration. Last January, the Office of the Legal counsel sent out their new interpretation of the Wire Act. Thus, thus, they said that online gambling is illegal across state lines. At the time, online sports betting websites chose a wait and see approach to the situation.
With this reinterpretation of the Wire Act, parts of the gambling industry will be winners while others not so much. The obvious winner are websites that sale lottery tickets across state lines. On the other hand, the sports betting industry is not very happy about the decision. Here is our take on how it will overall affect the gambling industry.
Affects of the Wire Act for the Poker, Sports Betting and Fantasy Sports Industry
Online Poker Industry
Monday’s decision is a win for the online poker industry. This is because they are not able to allow interstate poker pools without violating the Wire Act. Even though the interpretation is not clear, since they do not have any association with sports gambling it is relevant. Thus, the decision does clearly support the legality of interstate poker which will allow the industry to grow.
Sports Betting Industry
Overall, the sports betting industry will not place any burden on their current bottom line. This is because they most sports betting software in the U.S. operates on an in-state basis. Thus, though thinking about becoming a bookie will need to evaluate their online presence strategies.
However, it will affect the growth of the sports gambling industry as well as their lobbying efforts. This is because the sports wagering industry will no longer have the poker industry as an ally.
Fantasy Sports Industry
For the Fantasy Sports Industry, the decision is not a bad one nor is it a good one. This is because even though the industry is under the Wire Act, the legality is still up for debate. Thus, the big question remains as to whether fantasy sports contests is a sports bet or not.
Since the definition of sports betting or wagering is still open, they remain in the same position as before.