US Now Says All Online Gambling Illegal, Not Just Sports Bets (bloomberg.com)
An anonymous reader quotes a report from Bloomberg: The U.S. Justice Department's decision that all internet gambling is illegal will cast a pall on the industry as businesses and state lotteries evaluate the implications of the change and the government's plans to enforce it. The U.S. now says federal law bars all internet gambling, reversing its position from 2011 that only sports betting is prohibited under a law passed 50 years earlier. Although the federal law specifically prohibits transmission of wagers and related information across state lines, the Justice Department's new interpretation will impact all online gambling because as a practical matter it's difficult to guarantee that no payments are routed through other states, said Aaron Swerdlow, an attorney with Glaser Weil Fink Howard Avchen & Shapiro LLP in Los Angeles.
The reversal was prompted by the department's criminal division, which prosecutes illegal gambling. The opinion issued about seven years ago that the 1961 Wire Act only banned sports gambling was a misinterpretation of the statute, according to a 23-page opinion by the department's Office of Legal Counsel dated Nov. 2 and made public Monday. The new reading of the law probably will be tested in the courts as judges may entertain challenges to the government's view of the law's scope, the Justice Department said. It may also affect states that began selling lottery tickets online after the 2011 opinion, as well as casinos that offer online gambling. In contrast, the Supreme Court last May "cleared the way [...] for states to legalize sports betting, striking down a 1992 federal law that had prohibited most states from authorizing sports betting."
The reversal was prompted by the department's criminal division, which prosecutes illegal gambling. The opinion issued about seven years ago that the 1961 Wire Act only banned sports gambling was a misinterpretation of the statute, according to a 23-page opinion by the department's Office of Legal Counsel dated Nov. 2 and made public Monday. The new reading of the law probably will be tested in the courts as judges may entertain challenges to the government's view of the law's scope, the Justice Department said. It may also affect states that began selling lottery tickets online after the 2011 opinion, as well as casinos that offer online gambling. In contrast, the Supreme Court last May "cleared the way [...] for states to legalize sports betting, striking down a 1992 federal law that had prohibited most states from authorizing sports betting."
So states can legalize other online gambling too? Seems reasonable
The article does not explain why it would be difficult as a practical matter to ensure that payments do not get routed through other states. Can anyone clarify what they mean by this? What exactly would need to be done, and how difficult would it be?
Trying to use sarcasm in text-based forums does not work.
If this law applies to loot box gambling, there will be a very large market with many customers that no longer welcomes unscrupulous games.
So investing in the stock market, or anything for that matter, is illegal?
Investing in anything has a risk/probabilistic component. Therefore it is a form of gambling. Well isnâ(TM)t it?
And donâ(TM)t retort with BS that playing blackjack online is 100% luck based .. it isnâ(TM)t. I mean, let me know randomly how clicking âoehit meâ for everything works out. All gambling takes some amount of skill to improve your odds.
Does that mean they're going to shut down ETrade too?
The fact that Trump has had an interest in several casinos in the past and says he seeks to be in the casino business again in the future has absolutely nothing to do with his Justice Department outlawing all online gambling.
Nothing whatsoever.
You are welcome on my lawn.
I bet you 5 dollars the courts strike this down.
Belgium has already made loot boxes illegal due to them being another form of gambling.
When is the US going to follow?
I wonder if it affects loot boxes. Some EU countries think they are basically gambling
+Raider of the lost BBS
I've never understood the US attitude about gambling. It's like nudity - everyone shuns it but the US has a giant porn market. Same with gambling. Just come out of the closet friends!
We finally found _some_ use for it.
This ban doesn't include horse racing/off-track betting. Those are specifically exempt.
During my American government classes. I didn't realize the DOJ was a legislative branch. So why the hell do we even have Congress any way?
Show me in there where the have authority to do this.
As sure as my late upstanding Dad got a ticket for going 70 in a 55 in North Carolina back in the day--one of the few times he got caught. And allegedly you aren't supposed to drink until you're 21. Now what was all that fuss too about the last POTUS and his "brackets" in the White House? Word is too that the king ain't none too pleased about his tea in the harbor.
I'll *bet* not much comes of this for a lot of people.
...what about lockboxes, then?
-Styopa
the government heavily regulates who can buy and sell stocks. You can't for instance, as a small investor, just pick a random company to give money to. There are rules about how, where and when you can invest specifically to prevent predatory investment instruments. To say nothing of the rules about soliciting investments.
A friend's company went on the lookout for investors for a new product and it's crazy how many rules there are on both sides of the equation. The only thing that makes gambling any different is the rules get suspended if you go to Las Vegas or an Indian Casino. For the most part those two self regulate to keep the absolute worst excesses in check (though they still take advantage of people to what I would say is an appalling degree).
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Let'em bet it. Let'em win or lose. The mechanism or location used for placing the bet and conducting the transaction should not matter. My father always told me never to bet money that I was not willing to lose. If it's a bad bet, and you don't know it, then you're the fool. And, a fool and his/her money will soon be parted. If you're at a poker table and you don't know who the weakest player at the table is, then it's you! Same holds when you're doing things on the internet.
This whole thing about reinterpretation of 50 year old laws strikes me oddly. We in the U.S. have a Congress right now that is more interested in getting re-elected and filling their own pockets than making sound and just laws. Sadly, there may actually be money to be made and fun to be had without this reinterpretation. Too bad. Call your Congress whatchamacallit and tell them you want to place bets and be responsible for your own losses and hunger!
I've never understood why gambling is so much of a controlled substance here in the US. I can buy scratch tickets at the gas station, pull tabs at the bar, and nobody ever gets raided for playing poker.... but for some reason every few years there seems to be some big gambling scare. I've always kind of assumed it was just marketing to get people to go to Vegas?
Somebody enlighten me.
You are being ripped off every second of every day, so that advertisers can help rip you off even more tomorrow.
This /. article leaves out key pieces of information quoted in the source: this is an opinion (and NOT a law or regulaton!) and impacts forms of online gambling *crossing state lines* ONLY.
As long as online gambling does not cross state boundaries AND the state itself has regulated online gambling, such as New Jersey, online gambling is perfectly legal but ONLY on those sites regulated and approved by appropriate regulators. Other states where itâ(TM)s perfectly legal to gamble online include Nevada, Delaware. But everything - e.g. players, servers, also taxes ;), have to remain within the state boundaries.
E.g. for New Jersey hereâ(TM)s the list of authorized and legal online gaming sites regulated by the New Jersey Division of Gaming Enforcement: https://www.nj.gov/lps/ge/gamingsites.html.
The other part worth mentioning is this is ONLY an *opinion* that does not carry any legal weight whatsoever.
Gee, a cynic would say think that the Trump administration did this to benefit brick-and-mortar casino owners, such as, oh, I don't know, Sheldon Adelson.
Do loot boxes count?
I would think this benefits physical gambling establishments. Who do we know that owns physical gambling establishments?
Oh dear - the Stock Market is in trouble.
All insurance is based on statistical risk. Is selling insurance online now illegal?
Trying to make it illegal is stupid, since it won't stop people.
Really? Do you want to bet on that?
"land of the free" my ass. most hypocritical country ever. sick of living in a fucking theocracy.
I think an offline version of your hilarious bet is essentially happening right now -- between the owners of Internet casinos.
Wouldn't this force Mega-millions and PowerBall out of business?
These lotteries are both multi-State.
How does a Justice Dept opinion become "US Now Says...Blah, Blah, Blah"? Especially considering that opinion isn't binding, and not representative of the US. The courts will tell us what is and isn't legal when they get a case to respond to. And clearly, it is legal within state lines no matter what Justice says because SCOTUS...wait for it...trumps them.
Just another day in Paradise
Among other definitions ! I found online that a state line is: "a border between one state and another in a country with states"
This would seem to mean that it does not apply to crossing the border between, say, Minnesota and Canada and perhaps again crossing the border between Canada and Alaska.
Maybe Alaska will become the online vegas
Nullius in verba
Are these not basically gambling for kids? Fuck off Activision and EA
Gambling is a gateway habit. It leads to things like prostitution, pedophilia and the worship of false gods. The bible teaches us that gambling is an immoral act and no matter what the liberal SJW's and video game haters tell you this country is a CHRISTIAN one.
The biggest gambling racket in the world is Wall Street. Investing is nothing more than gambling and should be taxed and regulated as such.
...
Loot boxes count as gambling as much as collectible cards.
Does playing the stock market count? Does Legal Off Track Betting count?
Exactly! This ruling might save gaming.
SO FREE GAIS!! lololol
does that mean Americans will have to go to Nevada to gamble on-line?
what about sites like draft kings, that are being pushed and encouraged by the sport leagues themselves?