Vegas Democratic Rep. Dina Titus penned a new letter to the US Justice Department (DOJ), asking the department not to reverse its 2011 interpretation of the Wire Act that allows states to legalize online gambling in their respective jurisdictions.
The letter by Titus comes after several gambling companies aired their concern that the Justice Department may be getting propositions to reverse its ruling on the Wire Act of 1961.
Fed Wire Act Of 1961
The Federal Wire Act ratified in 1961 prohibits the operation of several betting businesses in the US. In 2011, the DOJ released to the public its legal opinion on the act, which essentially states that only sports-betting is prohibited by the Wire Act. All other forms of online gambling could be legalized by the states if they deem it fit.
The DOJ’s interpretation of the Wire Act has enabled many states to start legalizing online gaming. As of now, New Jersey, Nevada, Delaware, and Pennsylvania have made significant strides in the legalization and regulation of online gambling, funneling tax and revenue money to the government from the once illegal industry.
But in the same way that the DOJ’s ruling on the Wire Act has inspired groups to push for different forms of online gambling in their states, there are groups that have called for online gambling to be banned and for the Fed Wire Act to be amended.  In fact, Titus’s first effort to defend online gambling came in response to a letter made by several attorneys general to the Trump transition team in 2016.
Trump Government Under Pressure To Ban Online Gambling
In November 2016, 10 state attorneys general signed a letter addressed to then still Vice President elect Mike Pence and the entire Trump transition team to roll back the 2011 legal opinion on the Wire Act and ban online gambling throughout the country. The letter argued that the 2011 DOJ decision ignored the rule of law by not conducting a full debate in Congress before it came out with the legal opinion.
It was signed by Jeff Landry from Louisiana, Bill Schuette from Michigan, Douglas Peterson from Nebraska, Adam Paul Laxalt from Nevada, Wayne Stenehjem from North Dakota, E. Scott Pruitt from Oklahoma, Alan Wilson from South Carolina, Marty Jackley from South Dakota, Ken Paxton from Texas, and Sean Reyes from Utah.
In response to the letter, Titus penned her own letter to then President elect Donald Trump and Pence on behalf of Nevada and the other states with online gambling regulations in place. According to her letter, Titus argued that the documents sent by the attorneys general were filled with inaccuracies and unfair allegations against online gambling.
Among the points discussed in her letter were the concern for underage gambling which WSOP NV and WSOP NJ strictly follows.  Shortly after the letter by the 10 attorneys general, US Senators Lindsey Graham and Dianne Feinstein again sent another letter, this time addressed to US DOJ Deputy Attorney General Rod Rosenstein. Graham and Feinstein argued the same sentiments in their letter, saying that online gambling preys on children and increases the proliferation of criminal activities.
Titus Fights For Online Gambling In America
Many believe that Titus’s latest letter was written in response to Graham and Feinstein’s. According to Titus, Nevada’s online gambling landscape serves as a great case study for the perfect online gambling climate. She says the state serves as the “gold standard” for a regulated market, which provides many benefits to the state and the people if done properly.
In a statement, Titus said “In Las Vegas, we have seen that a regulated market is always better than an illegal one. Internet gaming will not go away with a reversal of Wire Act guidance; it will merely push more consumers into black markets. A reversal will only hurt business.”
In addition to her defense of the online gambling industry, Titus also asked Congress to revoke the federal sports betting handle tax that imposed a 10 percent tax on sports betting. The DOJ has yet to comment on Titus’s letter and wouldn’t say whether the department is reviewing its stance on online gambling.
Titus’s plea to the DOJ comes in the midst of the gambling industry’s anticipation of the ruling by the Supreme Court on whether they will rule in favor of Gov. Chris Christie of New Jersey to repeal the Professional and Amateur Sports Protection Act of 1992 (PASPA). If the Supreme Court deems the PASPA unconstitutional, this will supersede the provision of the Wire Act that prevents states from legalizing sports-betting.