Legislation

US Online Casinos Given 90 Days To Stop Interstate Services

The United States Department of Justice (DOJ) is not wasting any time in enforcing its  powers to stop online gambling operators from offering interstate wagering services. The DOJ recently surprised online gambling operators by claiming that the Wire Act had been misinterpreted which allowed operators to set up online shared liquidity pools.

The DOJ announced earlier in the week that it would look to stop shared liquidity arrangements and has now issued a 90 day deadline by which operators have to stop all shared offerings.

The 90 day deadline is really short notice for online gambling operators to wind up their shared services. Nevada, New Jersey and Delaware all have interstate shared liquidity arrangements which were carried out in order to boost their respective online poker markets who were struggling individually to survive.

The memo issued by Deputy Attorney General Rod Rosenstein will allow iGaming operators to continue to offer online gaming services but only within their licensed state borders. A number of online lottery operators will also be impacted by this decision. Gaming operators have invested a lot of resources in both time and money to modify their online gaming software and prepare for interstate liquidity.

8 News NOW Las Vegas

 

The move has helped their online gambling offerings to a certain extent. However, all that will now be undone due to the memo from the DOJ. Operators will once again have to fork out cash to modify their online software and prevent out of state players from accessing their services.

Online Gaming Operators Will Fight Back

However, online gaming operators are not queuing up to modify their software and comply with the DOJ order. They will look to fight back and take the legal route to file an appeal, get an extension to the 90 day order and hopefully get the DOJ to reverse its recent decision.

iGaming operators will not be the only ones fighting back as the Nevada Gaming Control Board is also considering its legal options. One can also expect the gaming boards in Delaware and New Jersey to follow suit.

The one person who will be pleased with this decision will be gambling tycoon Sheldon Adelson. The Chairman of the Las Vegas Sands Corp had launched his Coalition to Stop Internet Gambling in an effort to get the Wire Act to be changed and stop online gambling legalization.

Doug Ramirez

Doug is our American guru, he will be keeping us informed with latest tournament news and goings on in the USA

Share
Published by
Doug Ramirez

Recent Posts

LV Sands, Concerned About Online Competition Amid Plan to Build $6bn Casino

Summary: Las Vegas Sands chairman and CEO Rob Goldstein is concerned about the impact of…

4 weeks ago

Biloxi Casino Plans Advance as MGC Considers Two Venues

Summary: Tullis Gardens Hotel and the Tivoli development are in the works. The casinos would…

1 month ago

Rio Hotel & Casino Finishes Phase One of Massive Property Renovation Project

Summary: Rio Hotel & Casino has completed phase one of its multi-year property-wide renovation project.…

2 months ago

Industry Heavyweight Execs Talk Tech Future at TribalNet Conference & Tradeshow

Summary: Monday’s TribalNet Conference & Tradeshow brought together gaming industry executives who discussed the future…

2 months ago

Nevada Regulators Propose Solution for Armed Casino Security Shortage

Summary: The Nevada Gaming Control Board addressed the shortage of armed casino security following the…

2 months ago

Venetian Waiting for Final Approval for $550m Dividend Distribution

Summary: The Venetian in Las Vegas is getting ready for a massive dividend distribution. The…

4 months ago