Feeds

Justice Department defends using 'dated' laws in gambling arrests

High Wire Act

Next gen security for virtualised datacentres

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 "They are certainly taking a very strong view of outdated legislation and applying an interpretation for their own purposes," said Hagan.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.

Secure remote control for conventional and virtual desktops

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Facebook, Google and Instagram 'worse than drugs' says Miley Cyrus
Italian boffins agree with popette's theory that haters are the real wrecking balls
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Facebook to let stalkers unearth buried posts with mobe search
Prepare to HAUNT your pal's back catalogue
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.