Justice Department Verdict Can Suggest Huge Changes For Online Poker Players

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In a really surprising move, the US Department of Justice has clarified its stance on online gambling. The legal opinion was issued on Friday right before Christmas, however 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 DOJ to clarify its position. Two other states, Illinois and New York, also asked for clarification concerning the Wire Act of 1961, among the list of major laws used by the Department of Justice in search of online gambling and poker regulation.

The opinion reverses the Justice Departments previous stance that all forms of gambling online are illegal, but stops short of proclaiming that the Justice Department looks to set regulations for a national online gaming system. The DOJ 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 latest decision by the DOJ states that the Wire Act only targets sports betting and not casino or poker offerings.

Several states might take advantage of this decision to introduce new lottery games in their borders. The new position does bring the potential for individual states or a band of states banding together to permit online poker to make a comeback in the United States.
There is the chance that several states could group together to create 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 provide the traffic necessary to drive big revenues.

Which states are situated to take advantage of the new ruling? Nevada recently passed legislation that will allow for companies to supply an intrastate online poker offering for 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 DOJ could lead the way for that plan to actually come to fruition. Other states, such as Iowa, New Jersey, California and Florida, have also considered online poker regulation for its citizens, but preceding bills have either been rejected or have been tabled as a result of federal government’s opposition to internet gaming.

Advocates of legalized internet gambling say the business could provide new sources of revenue for states. But others, including big casino interests, prefer a country wide system restricted to online poker, claim that the free-flowing nature of the Internet is ill-suited for state gambling plans, which would attempt to limit online gambling to in just a given state’s borders.

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