The U.S. federal government’s reinterpretation of the Wire Act has ignited new legal battles, and the iDEA organization has joined the fray.
The iDEA Growth Trade Association, which advocates for the expansion of regulated online gaming across the United States, has become the most recent organization to challenge the U.S. Department of Justice’s (DoJ) revised stance on the Wire Act. Represented by the Ifrah Law Firm, iDEA Growth initiated legal proceedings against the DoJ in the New Hampshire District Court on February 25th. This week’s “State of the Union” in collaboration with the Segev Law Firm, concentrated on the most recent legal challenges against the DoJ’s revised stance on the Wire Act, as well as recent developments in Virginia, Arkansas, and Indiana. Jeff Ifrah, Chief Counsel for iDEA Growth, declared, “We are confident that the New Hampshire court will appropriately consider legal precedents over political considerations when making its decision, a decision that will have a substantial impact on a rapidly expanding industry that has the potential to generate significant economic advantages for states across the nation.”
iDEA joins the fight against the revised opinion on the Wire Act.
On January fourteenth, 2019, the judgment disregarded legal precedent and essentially disregarded the legislative history of the Wire Act, which backed the 2011 memo.
This is the third agency to formally challenge the Department of Justice’s revised stance on the Wire Act, which asserts that the law applies to all forms of wagering, not just sports betting, as the 2011 judgment stated. The New Hampshire Lottery and its iLottery solutions provider NeoPollard Interactive have both filed legal actions. Meanwhile, the attorneys general of New Jersey and Pennsylvania have also launched attacks on the judgment, requesting the Department of Justice to guarantee that forms of gambling launched after the 2011 opinion are protected.
Virginia is one step away from gambling and casinos.
The Virginia legislature has passed a bill that would legalize sports betting and permit land-based casinos to open in the state for the first time, only needing Governor Ralph Northam’s signature.
The state Senate passed the bill 30-10, and the House of Delegates voted 64-27 in favor of the bill. The House later agreed to reconsider, but the bill still passed 64-33. Governor Northam must now sign the bill for it to become law.
The proposed amendment to Senate Bill 1126, introduced by Democratic Senator Louise Lucas, would make casino gaming legal, but only in cities that meet specific criteria. These criteria include an unemployment rate of at least 4%, a poverty rate of 20%, and a population decrease of at least 7% between 1990 and 2016. Tribal casinos would be permitted in cities with a population of at least 200,000 where 24% of real estate is exempt from local property taxes. Before casinos could open, a local referendum would be necessary to obtain resident approval in each jurisdiction.
The Virginia Lottery Board would be responsible for overseeing the market, and licensed casinos would be subject to a tax rate of 13% to 15% of their total earnings.
The Licensing, Occupations, and Administrative Regulations Committee of the Kentucky House of Representatives unanimously approved House Bill 175, with only one member abstaining. The Kentucky House of Representatives subsequently endorsed the bill. House Bill 175 would authorize Kentucky racetracks and sports venues to offer in-person, online, and mobile sports betting, while also legalizing fantasy sports gaming and online poker.
The initial version of the bill specified that the initial cost of a sports betting license would be $1 million (£769,600/€882,100), along with an annual renewal fee of $50,000. The tax rate for in-person betting would be set at 10.25% of the sportsbook’s adjusted total earnings, while the rate for online or mobile betting would be 14.25%.
The Kentucky House of Representatives is currently considering House Bill 175. To be approved, it needs a minimum of sixty votes out of one hundred. Afterward, it will be forwarded to the Senate for additional scrutiny.
The gambling legislation in North Dakota is advancing.
House Bill 1254, which seeks to authorize live gambling in North Dakota, has successfully passed the state’s House of Representatives.
The bill was initially rejected on a second reading in the state House, garnering forty-six votes in favor and forty-four against, but failed to pass due to a lack of a constitutional majority. However, upon reconsideration, the bill ultimately passed with fifty-two votes in favor and thirty-eight against.
House Bill 1254 mandates that sports betting be categorized as a game of chance, and operators will be subject to varying tax rates based on their total sports betting earnings. Operators generating less than $1.5 million in quarterly revenue will be assessed a 1% tax rate, while establishments exceeding this threshold will encounter a 2.5% tax rate.
The legislation also specifies that only one entity can secure a sports betting license at a time within two or more closely affiliated organizations.
The bill will be subject to debate in the North Dakota Senate after it reconvenes on February 27th.
Arkansas’s casino and sports betting rules will be submitted to the Secretary of State.
The Arkansas Racing Commission’s regulations concerning casino gambling and sports betting have been endorsed by the Joint Budget Committee’s Administrative Rules and Regulations Review Subcommittee.
The Horse Racing Board recently passed a set of regulations and sent them to a smaller group for review, where they were accepted on February 26th. These rules will now be sent to the Secretary of State’s office and will become official 10 days after being submitted.
This lengthy document, spanning 314 pages, details a comprehensive set of rules covering gambling at physical casinos and sports betting. These regulations have been sent to the state’s legislators for additional examination.
Prior to this, the document was made public in late January, inviting public input on the proposed rules.
The document specifies that a 13% tax will be charged on the first $150 million in net casino gambling income, with a 20% tax on income exceeding that amount. Gambling taxes must be paid by the 20th of each month.
WatchandWager Receives Extended License in California
WatchandWager, a division of Webis Holdings, has had its online pari-mutuel wagering license in California extended for two years.
The license, approved by the California Horse Racing Board (CHRB), was valid from 2019 to 2021, allowing WatchandWager to continue accepting online pari-mutuel bets from residents of the state. Webis specializes in pari-mutuel wagering and operates the WatchandWager Cal Expo harness racing track in California. It previously received a three-month extension of its license before receiving full approval.
Our firm possesses online wagering permits in California and at brick-and-mortar racetracks, which is a significant advantage for us, remarked Ed Comings, head of WatchandWager.
Indiana is nearing the legalization of sports wagering.
The Indiana Senate has approved a proposal that could make sports betting legal in the state, and it will now be forwarded to the House for deliberation.
Senate Bill 552 would permit the state’s licensed gambling establishments to provide betting on professional and collegiate sports as early as the following year.
The Senate approved the proposal by a vote of 38-11, enabling it to proceed to the House for further discussion. The proposal has already been endorsed by the Senate Public Policy Committee.
The proposal still requires modifications, but the current version specifies that Indiana casinos would be authorized to offer sports betting, both in person and online, to bettors aged 21 and older. The proposal would also permit racetracks to offer live table games as early as this year.
However, the proposal does not permit betting on esports content or any high school or youth athletic events.
Sign up for the iGaming newsletter.
