News & Press: Industry Related

If PASPA Falls, Wire Act Awaits As Challenge To Online Sports Betting

Thursday, February 8, 2018  
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If PASPA Falls, Wire Act Awaits As Challenge To Online Sports Betting

Even if a 1992 federal ban on sports betting is overturned by the U.S. Supreme Court this year, a separate 1961 federal law will create compliance complications for participants in a state-by-state online sports wagering industry that has already begun to take shape, according to legal experts.

*** However, the demise of PASPA would not necessarily mean game-on for a multi-state, cross-border U.S. online sports-betting market, legal experts told GamblingCompliance.

Although there is an exemption for transmissions between two or more states where sports betting is lawful (the Wire Act), that carve-out applies only to “information assisting in the placing of bets of wagers,” and not to the actual bets themselves.

“Without a change in the federal Wire Act, you will need servers in each state from which wagers will be taken,” said Greg Gemignani, a gaming attorney with the Dickinson Wright law firm in Nevada, where intrastate mobile sports betting is regulated.  Click here to read more.


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