The U.S. Department of Justice recently decided that the 1961 federal Wire Act only applies to sports-related gambling. This is huge news for the potentially lucrative state-sanctioned online gaming industry. It could pave the path for agreements between legal gaming states or internationally, claims renowned gambling legal expert I. Nelson Rose.
He writes that this virtually eliminates federal anti-gambling statutes. Multi-state lotteries have existed for years, and in any case federal law does not consider poker a lottery. The only laws left are those that go after organised crime, but that requires there be another legal violation.
With intra-state games like legalised poker, many other states may eventually allow some form of online gaming to boost their revenues. That is the main reason why gaming has enjoyed such expansion in the past 15 years.
The key question all operators should ask is: how will it affect us? Will there be opportunities for us to participate in some way? Or will online gaming prove to be a threat similar to home video games, which siphoned off revenues from street and arcade operators after their introduction in the mid-1980s?