DOJ to wait 90 days before acting on new Wire Act opinion

The US online gambling market has been given 90 days to adjust to a new Department of Justice (DOJ) opinion on the scope of the Wire Act.

On Tuesday, the DOJ announced that it would wait 90 days before implementing its new Office of Legal Counsel (OLC) opinion that the 1961 Wire Act applies not only to sports betting but also to other forms of online gambling. That new opinion, which was formally released on Monday, reversed a 2011 OLC opinion that led to the launch of multiple intrastate online lottery, casino and poker sites.

The DOJ called its 90-day delay “an internal exercise of prosecutorial discretion” intended to give affected operators time in which to modify their behavior to conform to the new opinion. The DOJ warned that the delay shouldn’t be interpreted as “a safe harbor for violations.”

All well and good, except no one is completely sure which operators need to modify their behavior, particularly given the Wire Act’s focus on interstate activity and the typically circuitous routes that online payment processing transactions can take.