Wire Gambling Legal Federal Betting Sports Act Law

The Interstate Wire "Act" (law) of 1961, usually referred to as the Federal Wire Act, "prohibits" (forbids; does not allow) certain types of betting that use "wire" (electronic) communication. The "original intent" (what people wanted the law to do) was to make "interstate" (between states) gambling illegal. As technology "advanced" (progressed; improved), this law was "interpreted" (understood in a particular way) for many years as a prohibition against "online gambling" (the practice of placing bets through the Internet).

However, in September 2011, the U.S. Department of Justice "issued" (released) a legal opinion stating that the Federal Wire Act prohibited the use of wire communications only for gambling related to sporting events. This means that it was legal to use the Internet and other wire communication for non-sporting-related gambling, such as sales of "lottery tickets" (pieces of paper with numbers that, if they match the numbers selected randomly at a future time, can be worth a lot of money). The legal decision also "opens the way for" (makes possible) Internet "poker" (a card game played by placing bets on the anticipated outcomes).

This is important for many organizations and businesses that would like to make money by offering online gambling services. Online gambling businesses have lower "overhead expenses" (the fixed, unchanging costs of doing business, such as paying for rent and electricity) and can reach a much larger audience than traditional, casino-based gambling sites. However, the legal opinion could still change, as the "Supreme Court" (the highest and most important legal court in the United States) could still "rule" (make a decision) on the new interpretation of the Federal Wire Act.