THE HOUSE ALWAYS WINS: THE WORLD TRADE ORGANIZATION, ONLINE GAMBLING, AND STATE SOVEREIGNTY

Gambling law and policy in the United States are at a tipping point. Gambling regulation has traditionally been a power reserved to the states. States are free to have casinos (except for Indian Casinos, which are governed under federal law), pari-mutuel wagering on horses, greyhounds, or jai alai, or have state lotteries. The Federal Interstate Wire Act of 1961 (commonly referred to as the Wire Act) was long interpreted as prohibiting online wagering in all forms, but not to prohibit any other type of gaming. However, in 2011, the Department of Justice released a memorandum opinion concluding that the Wire Act would only bar the online taking of bets involving sportingevents (which would violate another federal law,the Professional and Amateur Sports Protection Act (PASPA)). However, this opinion is not legally binding and has yet to be ‘tested in the courts. View More