Analysts highlight importance of DoJ gambling comments

US Department of Justice’s (DoJ) confirmation that the 1961 Wire Act only applies to sports betting has been described as an “important game changer” by the head of a top industry analysis group.

Responding to a query from the states of New York and Illinois regarding the standing of online lotteries within the Act, assistant attorney general Virginia A Seitz had stated that “interstate transmissions of wire communications that do not relate to a ‘sporting event or Contest’ ... fall outside of the reach of the Wire Act”.

Reacting to the DoJ’s comments on the matter, which amounted to a 13 page document, Warwick Bartlett, CEO and founder of gambling industry analysts Global Betting and Gaming Consultancy (GBGC) said: “This is an important game changer. Internet companies have had a tough 2011 and with the prospect of a relaxation to current law in the US 2012 looks like being a better year.”

“The current US lottery market is worth about $55bn in sales,” he added. “We estimate, given the high penetration of broadband in the US, that lottery sales on the internet could reach $10bn quite quickly if all of the states embrace this wonderful opportunity. A lot of state governors will be happy with this news.”