Justice Department Decision May Indicate Big Changes For Internet Poker Players

In a really shocking move, the United States Department of Justice has clarified its stance on online gambling. The legal opinion was issued on Friday just before Christmas, but the original decision was made back in September. The ruling came in response to a request by Senators Harry Reid and Jon Kyl for the Department of Justice to explain its position. Two other states, Illinois and New York, also wanted clarification regarding the Wire Act of 1961, one of the major laws used by the Department of Justice in pursuit of online gambling and poker regulation.
The opinion reverses the Justice Departments previous stance that all types of gambling online are illegal, but stops short of proclaiming that the Justice Department looks to set regulations for a national online gambling system. The Department of Justice says the new policy “differs from the department’s previous interpretation of the Wire Act, (but) it reflects the department’s position in Congressional testimony during the time the Wire Act was passed in 1961.” The new decision by the Department of Justice says that the Wire Act only focuses on sports betting and not casino or poker offerings.
Several states may take advantage of this decision to introduce new lottery games inside their borders. The new position does bring the possibility of individual states or a number of states banding together to allow online poker to make a comeback in America.
There is the chance that several states could group together to make an online poker offering more appealing. Very similar to multi-state lotteries like PowerBall and Mega Millions plus some interstate horse racing, a multi-state online poker offering would offer the traffic required to drive big revenues.
Which states are situated to take advantage of the new ruling? Nevada recently passed legislation that would allow for companies to offer an intrastate online poker offering to its citizens. Earlier this month, the Nevada gambling Control Board announced that six companies have applied for licenses, but were holding off until the federal government released a stance. The District of Columbia has long delayed plans to offer online poker to its residents. The latest decision by the Department of Justice could lead the way for that plan to actually come to fruition. Other states, such as Iowa, New Jersey, California and Florida, have considered online poker regulation for its citizens, but previous bills have either been rejected or were tabled with the federal government’s opposition to internet gambling.
Proponents of legalized gambling online say the business could provide new options for revenue for states. But others, including big casino interests, prefer a national system limited to online poker, say that the free-flowing nature of the Internet is ill-suited for state gambling plans, which will attempt to limit online gambling to within a given state’s borders.

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