Interstate Online Gambling
(by Natasha Bach, Fortune and an AP news report) – The U.S. Justice Department (DOJ) now says that all internet gambling between states is illegal.
The new law would allow the Michigan Gaming Control Board to enter into agreements for interstate online poker. It would be up to the board, as the bill wouldn’t require the MGCB to do so or provide any timeline for reaching such an agreement with another jurisdiction. Thus, any form of interstate gambling whether a lottery, poker, or traditional casino game is prohibited. After the widespread uproar of this new DOJ memo upending online. The act only applied to sports betting, so in the past eight years, multiple US states launched interstate online lottery, casino, and poker operations. But, from now on the rule will apply to all sorts of interstate gambling. Sports Betting Legislation. In May 2018, the US Supreme Court lifted the sports betting ban that was active since 1992. Interstate compacts are important because the viability of the online poker economy relies on player traffic. Poker games cannot run without enough players because people play against each other, unlike casino games where players compete against the house. Now, nearly 60 years later people wonder if the Wire Act will always be a roadblock to interstate online gambling in America. Whether the Act applies to all forms of gambling (or only sports betting) is currently the subject of a court in the First Circuit.
A November opinion made public Monday reversed a 2011 opinion on the Wire Act, which established the law as applicable to only sports betting. The DOJ [says] that the 2011 opinion misinterpreted the statute and reinterprets the Wire Act to apply to any form of gambling that crosses state lines, not just sports betting.
The opinion could have wide-reaching effects in states that sell lottery tickets online or where online gambling is legal. This number has increased in recent months following the Supreme Court’s decision to legalize sports betting in the U.S. last year [which permits each state to allow sports betting within the state].
…While the precise effects of the change are unclear, lobbyists told The Washington Post that it could affect interstate compacts and lotteries.
Deputy Attorney General Rod Rosenstein on Tuesday issued a memo saying the Department of Justice will wait 90 days to implement the ruling. The delay will allow businesses to adjust their operations.
Interstate Online Gambling Games
Legal experts say casino operators and online lotteries will likely take the issue to court.
From Fortune .com and AP. Reprinted here for educational purposes only. May not be reproduced on other websites without permission.
Michigan’s Senate approved the Interstate Online Poker Bill early in October, 2020.
The Bill is now to be voted upon by House of Representatives.
Sen. Curtis Hertel Jr. introduced the Bill in June as Senate Bill 0991. The Bill would allow consumers in Michigan to compete against players in other regulated states across the US.
Michigan Lawful Internet Gaming Act would stand to be amended if the Bill becomes the law.
Interstate Online Gambling Rules
The Bill states that Michigan Gaming Control Board (MGCB) may enter into agreements with other jurisdictions, including Indian tribes, to facilitate, administer, and regulate multijurisdictional internet gaming for poker, reported gambling.com.
Interstate Online Gambling
MGCB executive director Richard Kalm said, “Once the rules go into effect, that will allow us to give licenses to both the operators and the platform providers. End of November, that’s our hope. But that will again depend on everything getting turned in, reviewed and approved. Then secondly, ultimately, what the operators and platform providers decide to do in terms of launching their product”, reported gambling.com.