The Interstate Wire Act of 1961 is a United States Federal law which is also called as Federal Wire Act. The Wire act is about prohibiting the action of a certain type of Betting Businesses. The law says that whoever is engaging in the business of wagering or betting and knowingly uses a wire communication for the transmission in interstate or wagers information on any contests and sporting events or for the transmission of a wire communication which makes the recipient entitled to receive credit or money as a result of wagers or bets or Foreign Commerce of wagers, shall be imprisoned for not more than two years or shall be fined, or both. In 2011 September, The US Department of Justice released a formal legal opinion mentioning, that the transmissions of wire communications are unrelated to a contest or sporting event shall fall outside the area of the Wire Act.
The latest Department of Justice of the Government in the US takes a side on the Wire Act, the legal online betting on the horse racing could indirectly impact the willingness of the credit card companies and banks to allow horseplayers on funding their accounts wagering deposits but it will not be impacted directly.
OnlinePokerReport.com first reported that the choice or opinion of the Office of Legal Counsel that falls under the Department of Justice had taken back the decision in 2011 during the Obama office which prohibited wagering information to pass around the state; it is only applied to betting related to sports. This change may create uncertainty for the business operating casinos online, daily fantasy sports and interstate lotteries, with credit card companies and banks.
There was an amendment in 2000 for the Interstate Horse racing Act of 1978, which said that telephone and other electronic forms of betting in states where that form of wagering is legal, it provides a clear-cut exemption to conduct interstate betting for horse racing.
Even with the rule about the exemption, most of the credit card companies and banks hesitated to allow the use of credit cards to fund ADW accounts. The CEO and the president of the National Thoroughbred Racing Association, Alex Waldrop, want to ensure that the opinion of the New Justice Department does not change the trend, causing a reversal.
Alex said via email that they are still reviewing the complicated and long view that appears to take us to bake to 2011 where lotteries and casinos were afraid to operate online but the horse-related industry was well established online due to ADWs to Paulick Report. He also added that online betting on horse racing that conducted with IHA is legal. He said that they will work with their allies and assure that credit card companies and banks allow credit cards for the advance deposits. It is also expected that the following version of the Hatch/ Schumer sporting wagering bill to have ample language sorting of the application of the Wire Act to every kind of online wagering transactions.
2 November was the date when the order by the Justice Department did; it is just two days earlier than the leave or resignation of Jeff who was the Attorney General. One group was believed to be funded by GOP mega-donor and Sands casino operator Sheldon Adelson, someone against online gambling.