{"id":24425,"date":"2019-04-15T20:51:39","date_gmt":"2019-04-15T20:51:39","guid":{"rendered":"https:\/\/www.pokerscout.com\/?p=24425"},"modified":"2019-04-16T13:36:37","modified_gmt":"2019-04-16T13:36:37","slug":"federal-judge-punches-a-couple-of-holes-in-doj-wire-act-position","status":"publish","type":"post","link":"https:\/\/www.pokerscout.com\/federal-judge-punches-a-couple-of-holes-in-doj-wire-act-position\/","title":{"rendered":"Federal Judge Punches A Couple Of Holes In DOJ Wire Act Position"},"content":{"rendered":"<p>Thursday, <strong>April 11<\/strong>, was a big day for the future of online gambling in the United States. In a <strong>US District Court in New Hampshire<\/strong>, <strong>Judge<\/strong> <strong>Paul Barbadoro<\/strong> listened to oral arguments in the Wire Act case,\u00a0which was brought by the <strong>New Hampshire Lottery<\/strong>.<\/p>\n<p>Counsel from the <strong>Department of Justice<\/strong> and the New Hampshire Lottery laid out their cases. They also answered questions from the judge.<\/p>\n<p>It was a good day for supporters of legal online gambling.<\/p>\n<p>Barbadoro\u2019s questions and statements consistently (but not always) seemed to <strong>favor<\/strong> the New Hampshire Lottery.<\/p>\n<p><strong><em>Play USA<\/em><\/strong> identified<strong> two specific exchanges<\/strong> that encapsulate the day, and which side Barbadoro favored. You can find a complete\u00a0summary of the proceedings\u00a0at\u00a0<strong><em>Online Poker Report<\/em><\/strong>.<\/p>\n<h2><span id=\"about_that_memo\">About that memo<\/span><\/h2>\n<p>The first hint that Barbadoro was leaning toward the NH Lottery came fairly early.<\/p>\n<p>The Department of Justice attempted to get the case tossed out of court by arguing\u00a0the NH Lottery had no standing to bring a case. The DOJ\u2019s reasoning was a recent memo issued by <strong>Deputy Attorney General Rod Rosenstein<\/strong> that (kind of, sort of) exempted state lotteries from falling under the enforcement umbrella of the new opinion.<\/p>\n<p>Barbadoro wasn\u2019t buying it.<\/p>\n<p>\u201cIf the threat of prosecution exists\u00a0and a lawsuit is brought because of a significant threat of prosecution,\u201d \u00a0Barbadoro said. \u201cI have a very difficult time seeing how the Rosenstein letter would deprive the plaintiffs of the standing they would otherwise have.\u201d<\/p>\n<p>The best counterargument it could offer was that it <strong>had no immediate plans to enforce<\/strong> its new Wire Act policy against lottery programs. But, as the DOJ counsel noted, that wasn\u2019t set in stone. Enforcement against online or multi-state lotteries was still under active review.<\/p>\n<p>Barbadoro also emphasized that the recent memo flies in the face of what the 2018 opinion stated. There\u2019s also the inconvenient fact that the impetus for the 2011 DOJ opinion was a request from the New York and Illinois state lotteries.<\/p>\n<p><strong>Dustin Gouker<\/strong> summed up Barbadoro\u2019s reaction nicely during a company discussion in the immediate aftermath of the case: \u201cI get the sense the Rosenstein memo backfired. (It) seems like they thought the case could get tossed on those grounds, and the judge stopped just short of LOLing at them.\u201d<\/p>\n<h2><span id=\"one_comma_two_different_wire_act_interpretations\">One comma, two different Wire Act interpretations<\/span><\/h2>\n<p>A second comment bodes well for online gambling supporters.<\/p>\n<p>Barbadoro pointed to an<strong> obvious flaw<\/strong> in the DOJ\u2019s reading of the statute, asking the DOJ:<\/p>\n<blockquote><p><em>\u201cWhy would (the second clause) criminalize the use of wires to receive money for doing something that is lawful under the first clause?<\/em><\/p>\n<p><em>\u201cIf you read it as the plaintiffs read it, then it is a completely coherent statute.\u201d <\/em><\/p><\/blockquote>\n<p>That common-sense reason highlights a fatal flaw in the DOJ\u2019s most recent interpretation of the Wire Act.<\/p>\n<p>Namely, the Wire Act doesn\u2019t make much sense if it\u2019s interpreted in that fashion.<\/p>\n<h2><span id=\"what_the_wire_act_says\">What the Wire Act says<\/span><\/h2>\n<p>The passage in question reads:<\/p>\n<blockquote><p><em>(a) Whoever being engaged in the business of betting or wagering knowingly uses a\u00a0wire communication facility\u00a0for the transmission in interstate or\u00a0foreign commerce\u00a0of bets or wagers or information assisting in the placing of bets or wagers on any sporting event or contest, or for the transmission of a wire communication which entitles the recipient to receive money or credit as a result of bets or wagers, or for information assisting in the placing of bets or wagers, shall be fined under this title or imprisoned not more than two years, or both.<\/em><\/p>\n<p><em>(b) Nothing in this section shall be construed to prevent the transmission in interstate or foreign commerce of information for use in news reporting of sporting events or contests, or for the transmission of information assisting in the placing of bets or wagers on a sporting event or contest from a State or foreign country where betting on that sporting event or contest is legal into a State or foreign country in which such betting is legal.<\/em><\/p><\/blockquote>\n<h2><span id=\"what_the_wire_act_means\">What the Wire Act means<\/span><\/h2>\n<p><strong>Attorney John Holden<\/strong> succinctly summarized the two arguments at <strong><em>Legal Sports Report<\/em><\/strong>:<\/p>\n<blockquote><p><em>Olson makes a fallback argument in the event the\u00a0Lyons\u2019\u00a01st Circuit statement is deemed dictum by the New Hampshire District Court. This is that the 2018 Wire Act opinion failed to apply a common-sense interpretation of the statutory language and instead choses to apply the \u201clast antecedent rule,\u201d which essentially confined the phrase \u201con any sporting event or contest\u201d to only the phrase immediately preceding it.<\/em><\/p>\n<p><em>This is contrary to the\u00a0Supreme Court\u2019s guidance regarding the application of the last antecedent rule, which states it should only be applied when \u201cthe varied syntax of each item in the list makes it hard for the reader to carry the final modifying clause across all three.\u201d<\/em><\/p><\/blockquote>\n<p>Of course, as Barbadoro said, \u201cThis statute is a mess of a statute.\u201d<\/p>\n<div class=\"redheader-cta tb_edit_table\">\n<div class=\"tb_editlinks\"><\/div>\n<div class=\"pusa-table cta\">\n<div class=\"sr-header\">\n<p>CHUMBA ACCEPTS US PLAYERS &amp; HAS REAL CASH PRIZES<\/p>\n<\/div>\n<ul class=\"pusa-list\">\n<li>\n<ul class=\"pusa-item\">\n<li class=\"pusa-logo\"><img decoding=\"async\" class=\"thirstylinkimg\" title=\"Chumba Casino\" src=\"https:\/\/www.pokerscout.com\/wp-content\/uploads\/2019\/04\/chumba1-1.jpg\" alt=\"Chumba Casino\" \/>Visit Chumba Casino<\/li>\n<li class=\"pusa-bonus\">$2 in Sweeps Cash FREEPLUS $10 when you deposit<\/li>\n<li class=\"pusa-details\">Chumba Casino Review\n<ul class=\"pusa-item-checklist tb-list-checklist\">\n<li><i class=\"fa fa-check\"><\/i>US Players Accepted<\/li>\n<li><i class=\"fa fa-check\"><\/i>$2 in Free-Play on Sign-up<\/li>\n<li><i class=\"fa fa-check\"><\/i>Deposit via Credit or Debit Card<\/li>\n<\/ul>\n<\/li>\n<li class=\"pusa-button\">PLAY NOW<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<h2><span id=\"summary\">Summary<\/span><\/h2>\n<p>Barbadoro hasn\u2019t ruled on the matter, but the consensus opinion following oral arguments is he is <strong>heavily leaning toward siding with the New Hampshire Lottery<\/strong>.<\/p>\n<p>But as the judge himself noted, \u201cI have a strong feeling that however I resolve the case, or however the 1st Circuit resolves the case, it is likely going to be resolved by the US Supreme Court either way.\u201d<\/p>\n<p>The post Federal Judge Punches A Couple Of Holes In DOJ Wire Act Position appeared first on Play USA.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Thursday, April 11, was a big day for the future of online gambling in the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":24428,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"link","meta":{"_acf_changed":false,"_lmt_disableupdate":"","_lmt_disable":"","vebbtech_seo_disable_yoast":false,"vebbtech_seo_hide_author":false,"vebbtech_seo_hide_date":false,"vebbtech_seo_hide_factchecker":false,"vebbtech_seo_fact_check_enabled":false,"vebbtech_seo_post_reviewer":0,"vebbtech_seo_post_review_date":"","footnotes":""},"categories":[6],"tags":[],"class_list":{"0":"post-24425","1":"post","2":"type-post","3":"status-publish","4":"format-link","5":"has-post-thumbnail","7":"category-news-category","8":"post_format-post-format-link"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Federal Judge Punches A Couple Of Holes In DOJ Wire Act Position -<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, 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