The U.S. Department of Justice has issued a legal opinion reversing its longstanding opposition to many forms of Internet gambling. The change could mean new revenue opportunities for cash-strapped state governments.

 

Officials in New York and Illinois had requested the Justice Department to reconsider the meaning of the Interstate Wire Act of 1961, which prohibits wagering over telecommunications systems that cross state lines or national borders. The two states, as well as others, have been searching for ways to expand lottery offerings in order to pull in more tax revenues.

 

In addition to wanting to sell lottery tickets online, states are hoping to tax certain forms of Internet gambling, including video poker. The Nevada Gaming Commission was quick to respond to the new environment. On Thursday it voted unanimously to license in-state online poker, with an eye towards future interstate gambling.

 

The Justice Department opinion, signed by Assistant Attorney General Virginia Seitz, did however, reaffirm that online betting on sporting events is prohibited.

-Noel Brinkerhoff, David Wallechinsky

 

Nevada Approves Online Poker Regulations (by Dan Katz, Poker News Daily)

Ruling by Justice Dept. Opens a Door on Online Gambling (by Edward Wyatt, New York Times)