Online poker wins as DOJ loses again on Wire Act

Jon Pill
Jon Pill
Posted on: January 21, 2021 12:37 PST

The wheels of justice turn slowly, and not always in the right direction, but they do turn. This week, those wheels ran over — ironically — the Department of Justice's 2018 opinion on the Wire Act. This is potentially a significant blow landed in favor of broader legalization for online poker.

The First Court of Appeals sided with the State of New Hampshire against the DOJ. The DOJ brought the appeal after the District Court sided against them in June 2019.

The 2018 opinion produced by the DOJ treated lotteries (and most other forms of gambling) as covered by the Wire Act. New Hampshire, whose State Lottery is a big earner both for the state and the private companies that run the lottery, didn't take this lying down. They took the DOJ to court and won.

The Wire Act is a piece of 1960s legislation that controls the movement of money across state lines for the purposes of gambling. It was part of the backdrop for Black Friday and has become something of a boogeyman for U.S. poker players. However, in late 2011 (too late to be of use in PokerStars or Full Tilt's Black Friday defense), the DOJ ruled that the Wire Act applied only to sports betting. Online poker and, more importantly for this case, lotteries were not covered.