New Hampshire has prevailed in its online gambling Wire Act case against the U.S. Department of Justice! What does this mean for the future of online gambling, poker and betting on sports? Plus, industry news from Apple that will affect mobile gaming, sports betting news from Oregon, and breaking news from New York!
Hello friends and welcome to This Week in Gambling. We have huge huge news to talk about so let’s get right into it with this week’s big story!
On our show from January 22nd of this year I told you all that the US Department of Justice had changed their opinion on the Federal Wire Act. A change which now said all online casino games and poker was covered by the Act, not just sports betting. That change threatened all internet betting in America not just poker, not just casino games… it actually put tax revenue from state-run lotteries in jeopardy, and that’s why New Hampshire filed their online gambling Wire Act lawsuit four months ago.
Arguments in this case centered around whether or not the 1961 Federal Wire Act somehow applied to online gambling. And as ridiculous as it may sound to assert that a law firm nearly 60 years ago somehow was written with the Internet in mind, that’s exactly what the DOJ argued. Then, last week just as I was uploading the show, the judge reached a decision in this case… talk about the worst possible timing ever! But after hearing what he had to say, it was worth the wait!
In his ruling, the judge said that the Wire Act most definitely, unequivocally, with 100% certainty only applies to sports betting! Not online casinos! Not online poker! And certainly not online lotteries! So game over, man! Game over! Now, that’s the good news… the bad news is the judge also said that he doesn’t believe he has the authority to make a decision on this matter for any other state other than New Hampshire. Of course, it’s still a step in the right direction… and there is still such a thing as precedent.
So what does this online gambling Wire Act decision really mean for our industry? Well for betting on sports, nothing. States were regulating sports betting before this case and they will continue to regulate sports betting after this case. However, for online gambling, poker and lotteries it’s a really big win! Opening the door for Interstate play… that is, states could now cross borders to pool players and create larger markets! Or smaller markets could actually cross state borders to create a large enough market! That means regulation is now viable for even the smallest states!
So what happens next is anyone’s guess. How will the DOJ respond to this? Will more states now regulate sports betting and online gambling? Time we’ll tell, my friends… time will tell. All I know for sure is this proves that money can’t buy you everything… ain’t that right Mr. Adelson?!
Just as we start to celebrate New Hampshire’s victory over the Justice Department, Apple goes and drops a bomb on our industry which could devastate mobile gaming! With the expansion of legal online gambling in America, Apple now says they will only allow native iOS apps in their store… that is, apps built on their mobile operating system. Most gambling apps are designed in html5, which is compatible with iOS… and that’s been just fine up to now… but no more. Apple has set a compliance deadline of September 3rd of this year… which of course, just happens to be a couple of days before the NFL season kicks off.
Also, the regulation of sports betting in Oregon will not go gentle into that good night… even after the state contracted with SBTech to handle their mobile betting. It seems not everyone in the state is in favor of mobile betting. A senator there has introduced an amendment to legislation that would rage, rage against mobile gaming in the state. It would require all bets be placed on equipment owned or leased by the state lottery… bummer.
Finally this week, breaking news just in: New York State has passed sports betting legislation to allow the activity at four casinos within the state! You can read about that on our web site and by following the links below this video in the description area. Once you’re there you can also read all about what went wrong with Louisiana sports betting... I mean, besides the fact that, you know, it’s Louisiana.
Shake well before use…
