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.”