DOJ narrows the Wire Act
A DOJ opinion limited the Wire Act to sports betting, opening the door to state online gambling.
On 23 December 2011 the US Department of Justice released an Office of Legal Counsel opinion concluding that the 1961 Wire Act applies only to sports betting, not to other forms of online gambling or intrastate lottery sales. The memo responded to questions from New York and Illinois about selling lottery tickets online. It removed a key federal obstacle to states legalising online casino and poker within their borders.
For decades the Wire Act had been read broadly as a barrier to internet gambling of all kinds. The 2011 OLC opinion reinterpreted it to cover only wagers on sporting events or contests, meaning states could license intrastate online lotteries, casino games and poker without violating federal law. The reinterpretation directly enabled the first regulated US online gambling markets that launched in 2013. In 2018 the DOJ reversed course and tried to apply the Wire Act broadly again, but courts ultimately upheld the 2011 sports-only reading.
The opinion gave states a green light to regulate online casino and poker, making the 2013 launches in Nevada, Delaware and New Jersey legally possible.
A teaching summary, not legal advice. Dates and figures are simplified for learning; confirm against the primary sources before relying on them.