Jul 30 2014

Graham, Feinstein, Ayotte Request DOJ Support for Legislation to Restore Wire Act

WASHINGTON - U.S. Senators Lindsey Graham (R-South Carolina), Dianne Feinstein (D-California), and Kelly Ayotte (R-New Hampshire) have written Attorney General Eric Holder urging him to support their legislation to reverse the Justice Department's December 2011 reinterpretation of the 1961 Interstate Wire Act and restore its ban on Internet gambling.

"Left on its own, the DOJ opinion could usher in the most fundamental change in gambling in our lifetimes by turning every smart phone, tablet, and personal computer in our country into a casino available 24 hours a day, 7 days a week," wrote the senators. "The FBI has warned it will open the door to money laundering and other criminal activity. And, it is bound to prey on children and society's most vulnerable. We note that a number of states are now considering authorizing Internet gambling, which poses a significant threat to states that have banned or limited gambling."

"We have introduced legislation to restore the Act to the way it had been interpreted for the five decades preceding the DOJ opinion," continued the senators. "Since you have changed DOJ's interpretation of the Wire Act, opining that it only applies to sports-related betting, will you support the legislation we have introduced to respond to your re-interpretation of the statute?"

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Full Text Below:

The Honorable Eric H. Holder, Jr.
Attorney General of the United States
U.S. Department of Justice
Washington, D.C. 20530

Dear Attorney General Holder:

In December 2011, the Department of Justice issued a legal opinion reversing 50 years of interpretation of the Wire Act. Lawyers there concluded the Act no longer bans gambling over the Internet as long as the betting is not on the outcome of a sporting event.

Left on its own, the DOJ opinion could usher in the most fundamental change in gambling in our lifetimes by turning every smart phone, tablet, and personal computer in our country into a casino available 24 hours a day, 7 days a week. The FBI has warned it will open the door to money laundering and other criminal activity. And, it is bound to prey on children and society's most vulnerable. We note that a number of states are now considering authorizing Internet gambling, which poses a significant threat to states that have banned or limited gambling.

We have introduced legislation to restore the Act to the way it had been interpreted for the five decades preceding the DOJ opinion. Since you have changed DOJ's interpretation of the Wire Act, opining that it only applies to sports-related betting, will you support the legislation we have introduced to respond to your re-interpretation of the statute?

The clock is ticking. We must act before we find virtual casinos making gambling pervasive in our society, invading living rooms, bedrooms, and dorm rooms across the country; a result we know the DOJ does not want to see.

We fully expect the Senate will act on our legislation this year, and it is our intent to do whatever we can to make that happen. With your help, and the backing of the DOJ, we are confident we can succeed in this effort.

We look forward to working with you on this matter.