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AG Nominee Backs DoJ Online Gambling Opinion

AG Nominee Backs DoJ Online Gambling Opinion

Added: February 18, 2015

The push for legalizing online gambling at the federal level in the United States had died down since the onus was transferred to the states by a Department of Justice opinion. However, there are ongoing attempts to make online gambling illegal across the country. The proponents of these attempts tried to read the mind of Attorney General Nominee Loretta Lynch during her confirmation hearing before the Senate Judiciary Committee. They thought that Lynch would be on their side because she had prosecuted illegal gambling cases as a U.S. attorney in New York. Republican Senator Lindsey Graham of South Carolina led the inquisition. Democrat Senator Dianne Feinstein from California, who backs all Internet gambling being made illegal, also sought Lynch’s views on the topic.

The 2011 memo from the Office of Legal Counsel of the DoJ reinterpreted that the Wire Act of 1961 applied only to sports betting and that states were free to enact legislation allowing other forms of online gambling. Lynch indicated that it was unlikely she would reverse that opinion. She said, “Unless in the course of my review I conclude that OLC’s interpretation of the Wire Act is unreasonable, I do not intend to take any action to suspend or revoke the opinion.” She added that according to her understanding, OLC opinions were rarely reconsidered.

Lynch also gave her written answers to written follow up questions raised after the hearing. In these she pointed out that the OLC is required to provide the president and executive agencies with advice on questions of law. In this the Office “strives to provide an objective assessment of the law using traditional tools of statutory interpretation”. In fulfilling this function the Office does not normally seek the views of Congress, state officials or the public. Lynch pointed out that Graham and others are free to try to change the law in Congress, if they do not agree with the DoJ’s interpretation. She concluded, “I would, of course, welcome the opportunity to work with you and other members of Congress to address concerns about online gambling through legislation.”

Post the controversial DoJ opinion three states have passed laws legalizing forms of online gambling. Nevada has legalized online poker and Delaware and New Jersey have legalized online poker and online casino games. Ten other states are considering legalizing online gambling in order to obtain a new revenue stream for their starving coffers. Many state-run lotteries have started selling tickets over the Internet.