The Interstate Wire Act of 1961, often called the Federal Wire Act, is a United States federal law prohibiting the operation of certain types of betting businesses in the United States. It begins with the text:
- Whoever being engaged in the business of betting or wagering knowingly uses a wire communication facility for the transmission in interstate or foreign commerce of bets or wagers or information assisting in the placing of bets or wagers on any sporting event or contest, or for the transmission of a wire communication which entitles the recipient to receive money or credit as a result of bets or wagers, or for information assisting in the placing of bets or wagers, shall be fined under this title or imprisoned not more than two years, or both.[1]
The law has been interpreted by some, including the Department of Justice, to mean that all forms of online gambling are illegal. However, U.S. District Courts have ruled to the contrary. Also, many believe the phrase "in the business of" means only businesses are affected. Some argue that the law only covers sports betting, and not other forms of gambling such as poker.
The U.S. Fifth Circuit Court of Appeals has ruled that the Wire Act prohibition on the transmission of wagers applies only to sports betting and not other types of online gambling.[2] The Supreme Court has not ruled on the meaning of the Federal Wire Act as it pertains to online gambling.
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