Clicky

US DOJ Files Motion to Dismiss Wire Act Lawsuit - PennsylvaniaCasinos.com News : PennsylvaniaCasinos.com News
  • 115 views
  • 3 minutes read
us-doj
Published on
Update on
Author

The United States Department of Justice has recently filed a motion to dismiss that was filed by the New Hampshire Lottery Commission (NHLC) over the reinterpretation of the 1961 Wire Act opinion in January 2019. Rumors of the move by the Wire Act to reverse the Wire Act opinion officially came in November last year but the department only published in at the beginning of 2019. According to the new opinion, the Wire Act now applies to all forms of online gambling instead of just sports betting as stipulated by the previous opinion from 2011.

There have been numerous speculations and reports claiming that the move was highly motivated by anti-online gambling lobbyists headed by billionaire Republican donor and chief executive of Las Vegas Sands Corp., Sheldon Adelson. The billionaire has not been shy about his strong stance against the rapidly growing online gambling industry and it would not be much of a surprise if this is confirmed to be true somewhere along the line.

Obviously, the new law presents a major hurdle for online gambling industries across several states where it has been legalized and is regulated. This is what stirred up the pot and resulted in a flurry of lawsuits being filed against the Department of Justice. Even Pennsylvania joined in on the fight but its request to be one of the key plaintiff’s lobbying against the new opinion was declined and now the state has chosen to back New Hampshire whose lawsuit seems to be gaining momentum quite rapidly.

The Department of Justice Hits Back

Last Friday, the US Department of Justice responded by issuing a 37-page document that mainly sought to have the lawsuit dismissed. Even though there is a very slim chance that the request will be honored by the proponents of the lawsuit the outcome may not matter since the department is seemingly ready to put up a fight. To put this into perspective, the DOJ document includes the following arguments:

  1. The Court Should Dismiss These Cases for Lack of Standing.
  2. Plaintiffs’ Claims Fail on The Merits Because Only One of The Wire Act’s Four Prohibitions Is Limited to Sports Gambling.
  3. Should the Court Rule Against Defendants, It Should Enter Exclusively Declaratory Relief.
  4. The Court Should Reject Amici’s Additional Arguments.

In addition to all that, just a short while after New Hampshire received numerous amicus briefs, Sheldon Adelson and his Coalition to Stop Internet Gambling (CSIG) lobbyist group also filed an amicus brief to support the Department of Justice. Clearly, a fight is looming here.

Editor's Picks

US Department of Justice Files Notice of Appeal for Wire Act

On Friday, August 16, the United States Department of Justice (DOJ) officially filed a Notice of Appeal in the civil case that it recently lost to the New Hampshire Lottery Commission (NHLC) over the reinterpretation of the 1961 Wire act opinion. The Notice of Appeal was filed by the DOJ, led by Attorney General William […]

Revenue Stats Reveal Modest Start for Pennsylvanian Online Gambling

On Friday, August 15, the Pennsylvania Gaming Control Board released revenue figures for the state’s online gambling industry which officially kicked off in July, and from the looks of it, the sector is on the right trajectory. According to the gaming regulator, the state’s three online gaming operators brought in a total of $812,306 between […]

PGCB Criticizes Plans by Operators to Reduce Slot Machines

On Wednesday, August 14, the Pennsylvania Gaming Control Board held a hearing in Harrisburg that saw to the unfolding of a number of regulatory actions. However, most of the time was spent addressing three petitions that sought to reduce gaming floors at certain venues. The most notable petitions were filed by Presque Isle Downs Casino, […]

Similar Stories in Gambling

US Department of Justice Files Notice of Appeal for Wire Act

On Friday, August 16, the United States Department of Justice (DOJ) officially filed a Notice of Appeal in the civil case that it recently lost to the New Hampshire Lottery Commission (NHLC) over the reinterpretation of the 1961 Wire act opinion. The Notice of Appeal was filed by the DOJ, led by Attorney General William […]

Sports Betting is Now Legal and Regulated in New York

Mid this month, the Empire State saw the launch of its very first regulated sportsbook. This comes six years after the enabling law was passed and a little over a year since the United Supreme Court abolished the Professional and Amateur Sports Protection Act (PASPA). Sports betting in the state was authorized under a voter-approved […]

Pa. Casinos Lose Lawsuit Against Online Lottery Games

A while back, a coalition of seven casinos in Pennsylvania filed a lawsuit seeking an injunction to stop the Pennsylvania Lottery from offerings online casino-style games. Last Friday, the casinos were dealt a huge blow when a Commonwealth Court chose to side with the lottery. The Pennsylvania Lottery officially launched its online lottery product in […]

GAN, FanDuel Expand Pennsylvania Online Gaming Partnership

Renowned online gambling software developer and solutions provider GAN last week announced that it would be making substantial additions to the services that it currently provides to FanDuel Group which is owned by Flutter Entertainment, the behemoth gambling operator that was previously known as Paddy Power Betfair. The expansion will be going down in the […]