{"id":102610,"date":"2019-04-11T11:41:00","date_gmt":"2019-04-11T18:41:00","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=102610"},"modified":"2019-04-11T11:44:36","modified_gmt":"2019-04-11T18:44:36","slug":"doj-wire-act-newest-view-called-ridiculous-by-gaming-expert","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/doj-wire-act-newest-view-called-ridiculous-by-gaming-expert\/","title":{"rendered":"Wire Act Application to State Lotteries in Limbo as DOJ\u2019s Newest View Dissed by Gaming Expert"},"content":{"rendered":"

Prominent gaming attorney Anthony Cabot is calling the latest interpretation by the Department of Justice (DOJ) on the Wire Act — and whether it applies to state lotteries — \u201cridiculous,” given earlier interpretations of the federal law.<\/p>\n

\"\"
New Hampshire Attorney General Gordon MacDonald is working with other lawyerss to challenge whether the Wire Act could be applied to state lotteries. (Image: NH Campaign for Legal Services)<\/figcaption><\/figure>\n

On Monday, DOJ attorneys filed a motion which says the recent reinterpretation<\/a> of the Wire Act did not address whether it applies to state lotteries and their vendors. The DOJ Office of Legal Counsel is now \u201creviewing\u201d that question.<\/strong><\/p>\n

Facing Off<\/h2>\n

The latest twist in the controversy comes as attorneys representing the Granite State\u2019s lottery appear today, Thursday, in a hearing before Judge Paul Barbadoro in Concord federal court over New Hampshire\u2019s lawsuit against Attorney General William Barr and the DOJ, which challenges application of the law to state lotteries.<\/p>\n

Filed in February, the lawsuit says the Nov. 2,\u00a0<\/strong>2018 opinion — which was publicly released in January — reverses the DOJ\u2019s 2011 opinion that held the Wire Act applied only to betting or wagering on sporting events or contests, and does not apply to sales of state lottery tickets over the internet.<\/p>\n

The new motion by the DOJ is a sign that federal attorneys are backing down in the heated dispute, according to Anthony Cabot, a Distinguished Fellow in Gaming Law at UNLV\u2019s Boyd School of Law and a former chair of the gaming law practice at Lewis Roca Rothgerber Christie.<\/p>\n

The only reason that the DOJ is making this ridiculous claim is to try to defeat the standing of the New Hampshire Lottery and its vendors from having standing for a court to determine the legality of their latest opinion,\u201d <\/strong>Cabot told Casino.org<\/em>.<\/span><\/p><\/blockquote>\n

DOJ Will Lose<\/h2>\n

\u201cThis is not a fight they want to wage on the merits because they will lose,\u201d Cabot told Casino.org<\/em>. \u201cThey are looking for a way out.\u201d<\/p>\n

Many attorneys representing the gaming industry have predicted extending the Wire Act to gaming other than sports betting<\/a> will not come to pass.<\/p>\n

Cabot agrees that the Wire Act only applies to sports betting, and the DOJ is \u201ctrying to back pedal to get out of a losing proposition.\u201d<\/p>\n

New Hampshire Lawsuit Likely to Get Dismissed<\/h2>\n

A different perspective comes from Greg Gemignani, an attorney at Dickinson Wright<\/a>\u2019s Las Vegas office and who also teaches gaming law at UNLV.<\/p>\n

Gemignani says the DOJ\u2019s opinion is \u201cgeneral guidance and not a threat against any particular operator,\u201d so the New Hampshire lawsuit is \u201cpremature at best and should be dismissed.\u201d<\/p>\n

He explained to Casino.org<\/em> that the DOJ\u2019s newest motion argues that lotteries are not \u201cthreatened\u201d legally, and courts \u201cshould not get involved when there is no dispute to adjudicate.\u201d<\/p>\n

Under a long-standing legal principle, courts basically only adjudicate cases where there is a \u201ccontroversy\u201d between the parties.<\/p>\n

\u201cCourts do not provide general guidance, opinions or statutory interpretations in the abstract,\u201d he explained. \u201cIf there is no case in controversy to adjudicate, the court will dismiss the matter.\u201d<\/p>\n

\n

The DOJ says it has no plans to enforce law against the state lotteries — irrespective of the 2018 opinion \u2013 so there is nothing for the court to adjudicate, Gemignani said.<\/p>\n<\/div>\n

Casino City Case<\/h2>\n

Looking back to a 2006 case, the DOJ wrote to the National Association of Broadcasters to warn that carrying ads for online off-shore companies violated federal gambling laws.<\/p>\n

Casino City, which carried ads for offshores on its website, filed for declaratory relief in a federal court in Louisiana.<\/p>\n

\u201cThe DOJ argued that it had no imminent plans to enforce against Casino City and, therefore, the matter should be dismissed as there was no case in controversy.\u00a0 The court dismissed the matter as requested by the DOJ.\u201d<\/p>\n

He says it is likely the judge will dismiss the New Hampshire lawsuit too because of similar grounds.<\/p>\n

I am not sure the DOJ cares one bit about the Federal Wire Act, and I don\u2019t think it will be enforcing the [law] based on its new interpretation,\u201d Gemignani said. \u201cOther news stories indicate that the opinion is a favor to an octogenarian casino mogul and large political donor that believes online gaming will destroy his investment in land-based casino gaming.\u201d<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"

Prominent gaming attorney Anthony Cabot is calling the latest interpretation by the Department of Justice (DOJ) on the Wire Act — and whether it applies to state lotteries — \u201cridiculous,” given earlier interpretations of the federal law. On Monday, DOJ attorneys filed a motion which says the recent reinterpretation of the Wire Act did not […]<\/p>\n","protected":false},"author":44,"featured_media":102620,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[60,13699],"tags":[],"acf":[],"yoast_head":"\nWire Act Application to State Lotteries in Limbo as DOJ\u2019s Newest View Dissed by Gaming Expert DOJ Wire Act Newest View Called \u2018Ridiculous\u2019 by Gaming Expert Casino.org<\/title>\n<meta name=\"description\" content=\"Prominent gaming attorney Anthony Cabot is calling the latest interpretation by the Department of Justice (DOJ) on the Wire Act -- and whether it applies A prominent gaming attorney, Anthony Cabot, has called a new filing by the Department of Justice (DOJ) on the Wire Act -- and whether it applies to state lotteries \u201cridiculous." Attorneys representing New Hamshire's lottery are appearing Thursday in Concord federal court over the state's lawsuit which challenges application of the law to state lotteries.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/doj-wire-act-newest-view-called-ridiculous-by-gaming-expert\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Wire Act Application to State Lotteries in Limbo as DOJ\u2019s Newest View Dissed by Gaming Expert DOJ Wire Act Newest View Called \u2018Ridiculous\u2019 by Gaming Expert Casino.org\" \/>\n<meta property=\"og:description\" content=\"Prominent gaming attorney Anthony Cabot is calling the latest interpretation by the Department of Justice (DOJ) on the Wire Act -- and whether it applies A prominent gaming attorney, Anthony Cabot, has called a new filing by the Department of Justice (DOJ) on the Wire Act -- and whether it applies to state lotteries \u201cridiculous." 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