The US mainstream media continued to follow the North Dakota attempts
to legalize online poker last week, with some prominence given to
reports that the US Department of Justice was showing it's heavy hand.
The Department reportedly sent a letter to the attorney general of
North Dakota stating that the proposed bill "...could be
in violation of federal laws." The correspondence apparently
cites three federal statutes that the state could be violating if
it moves forward with the legislation: the Wire Act, the Travel Act
and the Anti-Gambling Act.
But legal experts who follow the industry say the DOJ is not on firm
ground. Attorneys Anthony Cabot, Frank Catania, Pat O'Brien and Allyn
Jaffrey Shulman testified last week before the North Dakota Senate,
and all four were adamant that regulated online poker in North Dakota
would not violate any federal laws.
"They (the DOJ) are real good at writing letters and threatening
jurisdictions without having any basis of case law," O'Brien
said during a press conference last week. Shulman said that a state
wanting to regulate online poker is above refute from the Wire Act.
"I would stake my reputation on the fact that the Wire
Act doesn't apply to online poker," she said. "I
said that six years ago, and I stand by that today. There is a clear
definition of the Wire Act as it applies to sports betting, and online
poker doesn't meat that definition."
Nevertheless, the DOJ letter is seen by some to cast some doubt on
the Bill's chances of passing the Senate. The Senate Judiciary Committee,
which held a hearing on the bill last week, is scheduled to vote on
the bill this week. The bill was amended to include a "defense
fund" created for the sole purpose of financing a court challenge
if the DOJ were to bring a lawsuit against the state.