The Wire Act of 1961 is basically a Federal Law that was implemented to prevent organisations and persons in the United States from taking part in any form of gambling which involves wire communications.

This meant that people couldn’t accept or place real money bets or wagers for any sporting events or other similar betting contests through transmissions by wire communications and if people were caught doing this, they could be prosecuted and could face a fine with a maximum of two years behind bars.

Fast forward almost 40 years to the mid/late 90’s, to the age of the internet and all of a sudden there was a boom in websites which started taking online wagers at venues such as online casinos, Sports Betting sites, bingo sites and poker sites.

Many people, including the Department of Justice (DOJ) have interpreted the law to mean that each form of online gambling came under the Wire Act of 1961, therefore all of these huge gambling portals appeared to be under threat from a dated 40-year-old law, even though they continued to operate.

This came to an end after the temporary Unlawful Internet Gambling Enforcement Act (UIGEA) was enforced, meaning that the entire virtual world of gambling was now seriously under threat, with most US players finding it very difficult to legally place a wager anywhere online using real cash.

This all changed in December 2011, which was to be the best Christmas present that gamblers and operators in the US could have asked for. The DOJ published a report outlining their opinion on the Wire Act stating that “Interstate transmissions of wire communications that do not relate to a ‘sporting event or contest’ fall outside the reach of the Wire Act.”

The US Courts (not the Superior Court) have even ruled that the Wire Act only applies to Sports Betting and does not apply to any other forms of internet gambling.

This published DOJ report gave a green light for online gambling portals looking to legally tap into the US market, which then triggered instant reactions.

This opinion came as a positive shock, which could hopefully see other laws falling into place and eventually see each state in the US being able to allow all forms of online gambling. The foreseeable future is only likely to witness changes arriving in occasional small steps.  

Almost instantly following this announcement by the DOJ, online casinos and similar companies could breathe a huge sigh of relief and focus towards the light at the end of the tunnel.

This decision has now paved the way for all types of online gambling services (apart from sports betting) to soon start operating from within a legally regulated environment. This will allow American players to gamble at websites which are based either at home or offshore and then the next major step will be for US Congress to fully legislate.   

Change should come in 2012, but how much is still unclear. Players can expect to see more of a positive outcome over the coming months, rather than a step back in the wrong direction.