Court Rules ‘Wire Act Limited to Sports Betting’

A federal judge on Monday blocked President Donald Trump’s administration from going following New Jersey’s $350 million online gambling industry.

U.S. District Judge Paul Barbadoro ruled the federal Wire Act referred only to sports betting and didn’t ban in-state on-line gambling or lotteries.

In so doing, he rejected an try by Trump’s Justice Department to reverse the position taken under President Barack Obama in 2011. That paved the way for New Jersey-based casinos to permit state residents to bet over the internet.

State agencies that relied on the earlier ruling “have openly engaged for a lot of years in conduct” that Justice “now brands as criminal” and have”had to confront a sudden about-face,” Barbadoro stated in his 61-page decision.

Justice spokeswoman Kelly Laco said the department “is reviewing the decision and declines to comment further at this time.”

The lawsuit was brought by the New Hampshire Lottery Commission, worried that Justice’s new position would jeopardize Powerball as well as other state lotteries.

State Lawyer Common Gurbir Grewal interevened within the suit on the side of New Hampshire.

The Justice Department’s “politically-motivated decision to undermine on-line gaming across the country put a vibrant and important business at danger right here in our state,” Grewal stated. He said the agency should “finally drop its efforts to criminalize state-sanctioned online gaming.”

Grewal separately sued Justice officials following they ignore his requests for particulars on why the agency reversed its position and took the side of casino billionaire Sheldon Adelson, a major Republican donor and Trump backer who has fought on-line gambling.

Adelson and his wife spent almost $200 million to assist elect Trump and congressional Republicans in the last two elections. That was much more than anyone else, based on the Center for Responsive Politics, a Washington-based study group.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top