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How US online poker could develop if IGT wins a lawsuit against the DOJ

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How US online poker could develop if IGT wins a lawsuit against the DOJ

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If a trial that IGT and its US-based affiliate filed against the Biden last month MJ Goes as America’s gambling lawyers expect, U.S. online poker could expand to several other states in no time, and it could open the doors to shared cash with Michigan and Pennsylvania .

It’s because IGT, the country’s largest video game and lottery service provider, has taken over MJ to criticize his persistent silence regarding the Wire Act. Regulators in Michigan, Pennsylvania, and elsewhere frequently view the law as the primary obstacle to their states joining interstate agreements that could provide the shared liquidity needed to support online poker.

“I think IGT wins this case and hopefully gets the ruling and protection he hopes for ”, Jeff Ifrah, Ifrah Law SARL, said pokerfuse.

How the parties got here

At the end of last month, IGT filed a lawsuit in the District Court for the District of Rhode Island asking the court to declare a 2018 notice by the DOJ Legal Counsel’s Office (CLO), published under the Trump administration, as “against the law”. The company said the 2018 notice put it at risk of prosecution unless it undertakes a prohibitively expensive restructuring effort.

This is a Trump decision MJ overturning a 2011 opinion of Obama MJ that the Wire Act only applies to sports betting. But the 2018 opinion didn’t go far in court: New Hampshire district court ruled against Trump MJ in 2019, and the First Circuit Court of Appeals upheld the lower court’s decision in January 2021.

The biden MJ then refused to appeal before a deadline to do so in June. But to the chagrin of state and industry officials, the MJ has been discreet about what the missed deadline means. To date, states have been reluctant to join interstate agreements such as the Multi-State Internet Gaming Agreement (MSIGA), which currently includes Delaware, Nevada, and New Jersey.

“The biden MJ the agenda is focused on other issues that are the top priority for the administration, ”said Jeffrey Silver, legal counsel at Dickinson Wright. Gambling is not one of them and never has been. Courts are reluctant to make general decisions, so the issue is likely to remain ‘open’.

Gregory Gemignani, lawyer at Dickinson Wright SARL, said it was not clear what would happen next. “The biden MJ signaled that he did not intend to rely on the 2018 opinion, ”he said. “The MJ could rescind the 2018 notice and the question would be moot. However, that the MJ will do so remains unknown.

Rescinding the 2018 notice is the same step that the attorneys general (AGs) of 25 states and the District of Columbia urged Attorney General Merrick Garland to accept a letter they sent in June.

Trial designed to seek clarity

IGT argues that the decision of the court of appeal in New Hampshire Lottery Commission v. Barr applies only to complainants in that specific case, including the Lottery and its service provider, NeoPollard Interactive. And since the MJ did not come out and disowned the 2018 review, it technically remains MJ Politics.

“That is why IGT wants clarity, ”Silver said. “They do business in many jurisdictions outside of the First Circuit and must demonstrate to various state gaming regulators that they are in compliance with federal law.”

Anthony Cabot, Distinguished Fellow in Gaming Law at the Boyd School of Law, University of Nevada-Las Vegas (UNLV), stated the initial decision of the district court in the New Hampshire the case, coupled with court of appeals backing and DOJ Biden’s decision not to appeal “makes any attempt to enforce the 2018 opinion highly unlikely.”

“If this resulted in a court decision, IGT would push for a decision that had broader implications than the impact of the 2018 advisory on its Rhode Island operations. The best scenario is for the MJ to reject his manifestly incorrect and politically motivated 2018 opinion and to reaffirm the proper analysis of his 2011 opinion that the Wire Act only applies to sports betting. This may be the course on MJ takes as it is correct, timely and profitable.

But Ifrah doubted the Biden MJ would issue such a public statement. He added that he had seen “no evidence” that the ministry still considers the 2018 opinion to be its official policy. “No one can believe that this administration will use the 2018 opinion against this industry,” he said. “Even a future administration would be unlikely to do so.”

Deputy GA promised 90-day review

IGT also revealed in his complaint that the MJ proposed to conduct a 90-day review of its lottery operations to determine whether it is in violation of the Wire Act.

Cabot said the 90-day review “could be a ploy on the part of the MJ convince the court to avoid making a final decision on the grounds that the controversy is not ripe for consideration until the MJ in fact threatens IGT’s business. Why the MJ would want to kick that box on the road to leave an incorrect opinion pushed by Trump to appease campaign supporters would be confusing. “

But Ifrah said then Deputy Attorney General Rod Rosenstein had “promised [a 90-day review] when the 2018 advisory was first issued. And Gemignani said the reasoning behind such a review was to prevent otherwise law-abiding citizens from going to jail.

“The Federal Wire Act is a criminal law with a prison sentence as a potential sentence,” Gemignani said. “The Trump MJ issued the 90-day warning regarding the application of the 2018 advisory as they realized that many law-abiding individuals and businesses were relying on the 2011 advisory to conduct their business in accordance with this advisory .

Regardless of what happens in court, Cabot said the gaming industry “must be proactive and convince Congress to amend the Wire Act to ensure its viability against illegal operators while removing any ambiguity and unnecessary burden on it. state-authorized sports betting. This shouldn’t be difficult because the Wire Act is poorly drafted and outdated. “

Always, IGT “Will be grateful for any forbearance statement which may give it a reasonable, albeit temporary, safe haven to continue its operations,” said Silver.

For his part, the Trump MJ recognized at the time of the 2018 overthrow that the matter was subject to challenge in court.

“Coming to a conclusion to the contrary from our previous opinion will also increase the likelihood that the executive’s view of the law will be tested by the courts,” wrote Steven Engel, the former deputy attorney general and head of the CLO who wrote the 2018 opinion.

“That phrase might be the only thing the 2018 CLO the opinion was correct, ”said David Gzesh of Gzesh Law Ltd.

The case in Rhode Island District Court is IGT and others c. Garland and others (N ° 1: 21-cv-00463).


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