Feeds

Justice Department defends using 'dated' laws in gambling arrests

High Wire Act

Beginner's guide to SSL certificates

The US Department of Justice has admitted that the 1961 Wire Act which it uses to prosecute executives of online gambling companies is "dated". The Department insists, though, that the law is sufficient for the prosecution of gambling executives.

Referring to the laws under which it prosecutes, including the controversial 1961 Act, Justice Department spokeswoman Jacqueline Lesch told OUT-LAW: "They include language about a wire communication facility which we believe includes the internet. They are dated but they cover online gambling."

Two UK businessmen have been arrested in the US in recent weeks in connection with internet gambling. Betonsports chief executive David Carruthers and Sportingbet chairman Peter Dicks were arrested at US airports when they landed. Carruthers's case is being handled by the DoJ, while Dicks may be prosecuted under state laws by the state of Louisiana.

The latest edition of OUT-LAW Radio looks into the confused legal status of online gambling in the US. "It is certainly very confused because they are relying on statutes that date back to the 1960s and you have the added complication of states interpreting them in different ways," said John Hagan, a lawyer at gambling law specialist firm Harris Hagan. "Certainly I'm confused and no doubt the online gambling operators are equally confused and when you're talking about the risk of criminal penalties and being arrested in transit through the states it's not a very satisfactory state of affairs."

"We don't think it is confusing," the Justice Department's Lesch said. "We think it contravenes three statutes, the Wire Act, the Travel Act and the Illegal Gambling Businesses Act. This has long been a concern of the DoJ."

Many legal observers question the use of the 1961 Act to prosecute individuals for using technology and services that were not invented when the Act was written. "They are certainly taking a very strong view of outdated legislation and applying an interpretation for their own purposes," said Hagan.

A new law which would outlaw all internet gambling has passed through the House of Representatives in the US but has not yet passed through the Senate. Most observers believe that it will not be passed. "The chances of it actually passing through the Senate are quite low," said Wayne Brown, an analyst at Altium Securities who follows online gambling firms. "The same bill has in various other forms been tried to pass over the last few years."

The DoJ spokeswoman said that it intended to continue prosecuting under existing laws. "When the evidence allows, we will continue," she said.

Copyright © 2006, OUT-LAW.com

OUT-LAW.COM is part of international law firm Pinsent Masons.

Beginner's guide to SSL certificates

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
DOUBLE BONK: Testy fanbois catch Apple Pay picking pockets
Users wail as tapcash transactions are duplicated
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
In the next four weeks, 100 people will decide the future of the web
While America tucks into Thanksgiving turkey, the world will be taking over the net
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.