Possible Confrontation Seems To Be Ahead For Department Of Justice and Online Horserace Betting Industry

There has been a great deal of criticism of current legislation being passed in the U.S. to favor horseracing at the expense of other forms of gambling and especially of it impact on such currently high profile adjudications as US vs. Antigua, the legal dispute that is taking place in the World Trade Organisation.

Several publications have responded to a Financial Times article that is suggesting that what has resulted is a legal despite between the horseracing industry and US enforcement authorities.

Mention is made in the article that those who go to Twinspires.com, a website run by the owners of the Kentucky Derby, are being offered a message to reassure them that online gambling on horses is legal.

The site explains that the recent anti-gambling legislation does not affect online horseracing betting which they claim was specifically excluded under the rules of the new law.

Apparently they fail to point out that the U.S. Department of Justice does not agree with this assessment.

The news article in The Financial Times explains that in a recent letter seeking clarification of this situation that was sent to a senior Democratic lawmaker with regard to the current status of online horse betting, was answered by a statement from the Justice Department supporting its view that interstate betting (within the United States) on horse racing done online is illegal. It points out that the current legislation has not changed this long held government position.

According to the Department of Justice, the new anti-gambling law is directed toward foreign online gaming sites and in no way otherwise affects existing legislation nor is it intended to resolve any existing disagreements over how to interpret" federal laws on online horse betting.

Some say this attempt to keep rules ambiguous is designed to protect the domestic gaming industry.

The Financial Times article points out that there is a legal despite over whether or not a 2000 amendment to the Interstate Horseracing Act (IHA), which had the effect of legalizing online pool betting in some states, acts to trump federal criminal laws that might otherwise prohibit interstate gambling.

The article also summarizes the industry’s position, which states that the IHA factually amended the Wire Act. The Department of Justice however, continues to say that the Wire Act remains the principal law and that interstate horse betting online remains illegal.

however, it is also pointed out in the Times article that the Department of Justice has not yet brought charges against any horse race company for offering online betting.

One commentator said in the article that this is probably because they don't want to lose and by so doing establish case law precedence.

It seems that the industry is not presently showing much concern for the situation as seen by the willingness of established companies to openly defy the Justice Department. This would some to indicate that the industry is confident that they still have the upper hand.

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