Justice Department Wants Wire Act Lawsuit Tossed

The US Justice Department has filed a motion to dismiss the Wire Act lawsuit brought against it on behalf of the New Hampshire Lottery and NeoPollard Interactive.

The filing, written by Deputy Assistant Attorney General Brett Shumate and John Tyler, Assistant Director of the Federal Programs Branch, argues that the District Court of New Hampshire should dismiss the case, on the basis that there is no actual case to answer.

It says that there have been no prosecutions as a result of the revised stance, and that to date states have not been blocked from carrying out any activity. This, it argues, means that the District Court has no jurisdiction to rule on the issue, as states may only rule on specific “cases” or “controversies” – neither, it says, exist at this point.

In the Department’s first robust defense of its decision, published in January, it again reiterates its stance that the Act’s wording clearly applies to all forms of gambling, not just sports betting.

It backs this up by pointing out that the Justice Department secured at least 17 Wire Act convictions between 2005 and 2011 – when a revised stance was issued – involving non-sports gambling. These, it notes, were upheld by various district courts. Furthermore, it adds, the plaintiffs’ claims fail on merit as a result of the Act’s wording.

The Department argues that just one clause of the language in question, which bans the interstate transmission of “information assisting in the placing of bets or wagers on any sporting event or contest”, applies to sports betting.