Oppose S. 2159 and H.B. 4301
Prohibition is Bad Public Policy

The Wire Act does not and should not prohibit online poker…

 On December 23 2011, after careful review of relevant case law and legislative history, the U.S.
Department of Justice (DoJ) released a memorandum clarifying their position on the Wire Act.
The DoJ found that the Wire Act does not apply to non-sports betting, thus allowing states to
consider their own legislation to license and regulate online poker.

 S. 2159 and H.B. 4301 claim to “restore” the Wire Act, yet these bills would perversely expand
the scope and intent of this law. The legislative history shows that Congress was primarily
concerned with individuals using telephones to place interstate bets on sporting events. In 1961,
sport betting was both the primary form of gambling carried out over the wires and the primary
source of revenue for organized crime gambling operations.

 The highest court to address the issue of the applicability of the Wire Act to different forms of
gaming—the United States Court of Appeals for the Fifth Circuit—has held that the Wire Act
applies only to sports betting (In re MasterCard Int’l Inc., 313 F.3d 257, 262-63 (5th Cir. 2002)).

 The current DOJ interpretation of the Wire Act is the correct interpretation; and it is supported
by legal scholars, federal case law and the legislative history.
Prohibition does not work…

 S. 2159 and H.B. 4301 amount to a misguided prohibition that will not work and could have
serious unintended consequences. These bills will deny responsible, regulated companies from
operating and allow an unaccountable offshore market to flourish in the United States.
 Prohibition will not keep kids safe: only through regulation can we ensure that state of the art
age verification software is in place to identify and restrict access for minors. These safeguards
would not exist under a prohibition.

 Prohibition will not protect against problem gambling: regulation requires that online gaming
operators implement more effective and sophisticated tools to prevent and combat problem
gaming than even brick-and-mortar casinos. Prohibition requires that none of these measures
be put in place.

 Prohibition will not deter criminals: in fact, it only plays into the hands of the criminal element,
just as it did in the 1920s when alcohol was banned. It is far better for the players’ financial fate
if the safety and security of Internet gaming transactions.