A legal opinion from the U.S. Department of Justice could threaten the viability of U.S. online gambling that crosses state lines.
The legal opinion that became public Monday says a federal law that prohibits interstate wagering applies to any form of gambling that crosses state lines, not just sports betting.
The opinion marks a reversal for the department, which under the Obama administration in 2011 said online gambling within states that does not involve sporting events would not violate the Wire Act.
The 2011 opinion opened the door for cash-strapped states and their lotteries to bring online gambling to their residents, as long as it did not involve interstate sports betting.
The federal law was enacted in 1961 to target the mob and its gambling activities.
Experts say the new legal opinion will likely be challenged in court.
Representative Dina Titus of Nevada’s First Congressional District released this statement:
“Though the full impact of this reckless DOJ reversal remains to be seen, we can be certain that it will inject uncertainty into a well-regulated market and push consumers back into the black market,” said Congresswoman Dina Titus (NV-1). “Unfortunately, the Trump Administration only supports states’ rights when it is politically convenient. Despite this setback, I will continue to lead the fight in Congress to ensure states like Nevada can decide what is best for them on the question of online gaming.”
(The Associated Press contributed to this report.)
