vpFREE2 Forums

Wire Act

Rasti wrote:

The Justice Department contends existing laws already make all Internet
gambling illegal for Americans.

No, they don't.

The 1961 Wire Wager Act specifically prohibits the use of telephone lines
for the purpose of placing a sporting bet.

No, it doesn't.

Since the Internet uses telephone lines,

Not always.

courts have ruled the Wire Act also covers Web sports wagering.

No, they haven't.

The "Interstate Wire Act," Title 18 paragraph 1084, makes it a federal
crime for those in the business of wagering to use a "wire communication
facility" to transmit wagers (or related information), except between venues
where wagering is legal.

Very few bettors fall under its provisions, as they are not in the business
of wagering (related provisions of the Internal Revenue Code created an
occupational tax on those in the business of wagering, and defined the terms
a little more precisely, effectively bookmaking.)

This is a summary of the latest prosecution.

Note that the men convicted were booking bets placed by others (the
goverment agents bet opposite sides of the same proposition, as the story
mentions, to reduce risk). So they were in the business of wagering, and
fell under the Wire Act. They also used dial-up connections to reach their
ISP, thus a wire communications facility was involved. And they, and their
ISP, were in locations where gambling was illegal, within the US.

So, the Wire Act can be used against bookies, despite their attempt to
insulate themselves by funnelling the transactions through an offshore site.

The original question, however, was about the legality of playing video
poker at an offshore site. There have been no convictions that I'm aware of
of US residents, whose sole crime was patronizing a virtual casino. That
doesn't mean there won't be, but several courts have held that the Wire Act
doesn't apply in such cases.

I am not a lawyer. If you want a legal opinion, you'll probably have to pay
a lawyer for one.

ยทยทยท

--
Randy Hudson <ime@panix.com>