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Wire Act’s Field of Application Is Settled by Court

21 January 2021, 16:00
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Important news about the betting market in the US, as well as the gambling industry in general, has been recently announced by the First District Court of Appeals.

Wire Act’s Field of Application Is Settled by Court

The Federal Wire Act and its future have been widely discussed by the gambling industry participants. It was passed by Congress in 1961 and brought a significant impact on the country’s betting sector. According to the law, some forms of betting business were banned. Although bookmaking services are legal across the US, the Act continues to influence it.

Wire Act vs. all types of gambling entertainment

The United States Department of Justice has appealed to the court with the intention to make the Wire Act applicable to all forms of gambling, in addition to sports betting. This would turn it into the biggest anti-gambling federal law. The DOJ has submitted a letter where it has stated that the Wire Act should be reconsidered and implemented into the gambling vertical completely.

However, the court has rejected the appeal. It means that the provisions of the law will be applied only to bookmaking businesses, without touching the overall market. Earlier, the DOJ’s attempts to extend the Act’s scope have encountered much opposition from other market participants. The New Hampshire Lottery Commission also went to court to contest the Department of Justice’s initiative. New amendments to the law could lead to considerable losses in the lottery sector’s revenue.

Read more: Trends in the American iGaming industry

Read more: Interesting facts about betting on sports

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