IGT demands a definitive answer about the legality of online gambling in the USA
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IGGT filed a complaint against the U.S. Department of Justice last week. The company wants to clarify the 1961 Wire Act on the issue of interstate gambling. It was passed by the Kennedy Administration in an effort to crackdown on organized crime. Since then, the law has been ambiguous and conflicting. The current complaint demands a definitive answer. IGT wants the government to state once and for all if the Act applies to all interstate commerce in gambling or only to sports betting.
The Wire Act was restricted to sports betting in 2011. New York and Illinois asked the DOJ if the Act would apply to the internet. Jeff Sessions said in November 2018 that the Wire act should be applied broadly to all forms of gambling. The state of New Hampshire challenged that opinion and was successful in the First Circuit Court of Appeals.
IGT is concerned about products like Megamillions and Powerball that use interstate transactions. IGT also provides online casino content in half of the US states where online gambling is regulated at the state level. IGG has invested in state-of-the-art technology to ensure that the bettor is physically present in the place where the lottery or casino game is offered.
A final decision on the application of the law is a matter of survival for the world's biggest lottery company. A negative decision would give IGT the compliance assurance they need to protect their assets in US internet markets. If a positive decision is made, Microgaming could re-enter the US market they left after the passage of UIGEA of 2016.
