60 Minutes Ignored Legal Advice: 2

Professor I. Nelson Rose from Whittier College was the legal advisor for the 60 Minutes online casino expose. The Professor explained to the show’s producers prior to taping the show that they had to be extremely careful when it comes to explaining the laws on online poker in the United States, mostly because it varies greatly from state to state. He explained to them the differences in each state and how they treat players who are caught gambling at online casinos. The Professor noted that he believes that the U.S. Department of Justice is to blame for the wrongful idea that online poker is not legal in the United States. It has been a grey issue, especially since gambling online is perfectly legal if it is the state lottery, fantasy sports, and horserace betting.

As the Professor explained, the U.S. Department of Justice has primarily prosecuted off shore online casinos and not the U.S. branches which raises questions about the legality of their presence in the United States. The Fifth Circuit Court has even admitted that the previous acts cannot cover the online casino legality because it did not leave room for something like that to be invented, after all, the Wire Act was written in 1961. The Wire Act of 1961 refers to any person who: “knowingly uses a wire communication facility for the transmission in interstate or foreign commerce of bets or wagers or information assisting in the placing of bets or wagers on any sporting event or contest."

The other part of the Wire Act of 1961 makes the transmission of a wire communication where the person receiving money acquired it from placing a bet or a wager. It is unclear whether that law will affect online casino players because they did not exist at the time. In fact, Professor Rose said that most cases that have been filed under the Wire Act have been due to sports betting, not online casinos. Professor Rose added: “The most important cases have held that the Wire Act only applies to sports betting. The cases have involved online casinos and online lotteries, which implies that it does not apply to internet poker.”