In order to generate billions of dollars in tax revenue and spur online gambling, the Barrack Obama administration has cleared the way for states to legalize online poker and numerous other betting games. Furthermore, on Friday the U.S. Justice Department altered a previous policy that incorporated civil and criminal charges against operators of numerous well known online poker sites. Till date, the Justice Department had declared all forms of online gambling illegal under the Wire Act of 1961. However, recently the department said that the Wire Act is only applicable to bets on a contest or a sporting event. Adding further, it said that the state is allowed to use the internet for selling lottery tickets to adult citizens. A gaming lay expert at Whittier Law School, Nelson Rose said that the U.S. government has given online gaming fans a very big gift. Meanwhile, the main topic of discussion was whether proposals by New York and Illinois to sell online lottery tickets to American adults violated the 1961 Wire Act. In his blog, Nelson Rose said that if a state legalizes interstate games such as poker, as the District of Columbia and Nevada have done, then there is no federal law that can be applicable against their administrators.
Virginia Seitz, the Assistant Attorney General revealed that from the law’s legislative history it is clearly visible that the main goal of Congress was to stop wire communications for sports gambling including betting on horse races. Furthermore, the Congress had also been worried about the increasing transmission of betting information on boxing, basketball, baseball and football. The Justice Department didn’t express any opinion about a clause in the law that lets prosecutors cut off phone lines where foreign or interstate gambling is taking place.
Furthermore, numerous U.S. states could be interested in making online lotteries to increase tax revenues and assist to contra the ripple effect of a federal deficit reduction push. In the last year, a growth of approximately 12 percent was noted in the global online gambling industry.