Hello friends J. Todd out here at Fremont
Street and here’s what’s happening This Week in Gambling!
This Week in Gambling!
Hello friends, and welcome to
This Week in Gambling.
I’m J Todd.
You know, every now and again something happens
in our industry that is quite surreal.
And when it does I get to report it!
Which leads us to this week’s big story: On
our last show we reported how the US Department
of Justice had lost their court battle with
the state of New Hampshire over their opinion
that the Federal Wire act applied to all forms
of gambling… not just sports betting.
On this week’s show we’re reporting that the
DOJ doesn’t seem to give a damn about losing
the court case, or what the federal judge
had to say.
In fact they just sent out a memo announcing
that the enforcement of their opinion on the
Wire Act has only been delayed.
Deputy Attorney General Jeff Rosen issued
this memo setting a brand new enforcement date
of January 1st, 2020.
And while marijuana is still illegal at the
federal level, this decision does beg the question:
What the hell is this guy smoking?
Jeffery also said that the delay in enforcement
is merely “prosecutorial discretion” and it
will not protect anyone who violates the Wire
Act between now and then… or violates the
DOJ’s opinion of the Wire Act between now
Damn that must be some good weed!
Seriously though, we always said that this
case would most likely wind up at the US Supreme Court.
And even though the Justice Department has
not officially appealed the New Hampshire
ruling, this memo sort of tips their hand
Meanwhile in New Hampshire, they celebrated
their court victory by passing a sports betting
bill which now heads to the desk of the governor,
who is expected to sign it.
I guess he’s not so afraid of a… memo!
Actually this New Hampshire legislation does
have the potential to change the entire landscape
of online gambling in America… all with
the inclusion of three little words.
We’re gonna talk about that at length when
we come back from the break.
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Now, let’s get into why this New Hampshire
legislation is so important.
To do that, we have to back up a minute.
You see the 10th Amendment of the US Constitution
gives States the right to regulate gambling
within their borders, online or land-based,
as long as it’s completely within their borders.
So what’s all this fuss about the DOJ and
the Wire Act?
Well the Wire Act is a federal law, which
means it only applies to bets that cross a state line.
When it was originally written in 1961 it
was intended to apply to organized crime organizations
that were using telephone wires to place sports
bets across state lines.
Fast-forward to the 21st century and the advent
of the internet.
Online gambling opponents theorized that since
the internet comes through a wire, and that
wire crosses state lines, well you get where
this shit is going…
These same opponents also theorized that the
Wire Act applied to all forms of online gambling,
not just sports betting, and well you can
see where this shit’s going too… except
that the judge in New Hampshire just set their
ass straight on that.
Well, he tried.
Now this sports betting bill that New Hampshire
just passed contains a very short, but very significant phrase.
A magical little phrase, if you will, that
could change the entire way that the Wire Act in enforced.
This phrase is “incidental intermediate routing”
which may not sound like much until you realize
just how the Internet works.
You see, when a state regulates online gambling
they have to consider geolocation, age verification
and payment processing.
If any one of those things take place on the
Internet and electronically cross the border
for even a fraction of a second well, you
can bet your butt that the DOJ is going to
be there saying it’s illegal based on the
Enter these three little words.
Incidental intermediate Routing means it’s
okay if one of those components briefly crosses
a state line due to the way Internet traffic
It kneecaps a large part of the power that
the Wire Act has.
Plus it’s a great way for New Hampshire to
tell the Justice Department to piss off!
So we’re just going to have to wait and see
what happens when New Hampshire signs this
bill into law.
How will the DOJ react to this?
What’s the DOJ going to do about the court
case that they lost?
Time will tell, but most likely it’s going
to be long, dragged out and ugly!
So stay tuned… this is gonna get good!
There’s somethin’ shaking between my legs.
Yea I have that problem too.
It’s not a bad problem to have…
I’m just saying…