According to published reports, American lottery and gaming machine developer International Game Technology (IGT) has sued the US Department of Justice over apparent loopholes in the Interstate Wire Act.
The 18-page complaint was filed with the United States District Court for the District of Rhode Island on Tuesday, per a report from Providence Business News, by the multinational company seeking a declaratory judgement on whether or not it is now legally permitted to process gambling-related transactions electronically across state lines.
The 2018 New Hampshire ruling that the Interstate Wire Act applied broadly to all forms of gambling and not just sportsbetting prompted the new lawsuit from IGT and its IGT Global Solutions Corporation subsidiary, which reportedly also names United States Attorney General Merrick Garland (pictured) as a defendant. According to reports, former Deputy Attorney General Rod Rosenstein supported this decision as federal policy, however he later recommended law enforcement to wait to crack down on state lotteries until his office provided more direction.
However, IGT's lawsuit claims that the anticipated change in direction never occurred, leaving its lottery operations vulnerable to the New Hampshire ruling. The massive corporation allegedly claims in its complaint that the risk it faces is not limited to the multiple iLottery services it offers to gamblers in Georgia, Rhode Island, and Kentucky; rather, it extends to multi-state jackpot games like MegaMillions and Powerball.
IGT has standing to sue because it employs wire communication services to transmit non-sports wagers across state lines and is consequently subject to immediate punishment.
The online gambling goods IGT offers to iGaming operators in New Jersey, Michigan, and Pennsylvania are apparently also a source of worry for the company. These new forms of gambling, which include video slots and virtual table games like roulette and blackjack, are supposedly only legal in six states at the moment, including Delaware, West Virginia, and Nevada, but could soon be made available to punters in many more jurisdictions following the passage of appropriate local legislation.
Even while IGT has invested in cutting-edge technology to verify the bettor's actual presence in the state where the lottery or casino game is offered, "iGaming" still employs a route of interstate commerce, the Internet. IGT has expanded its land-based gaming operations to include facilitating its gaming partners' provision of online versions of their customers' favourite casino games playable via desktop computers and mobile devices.
IGT allegedly employs over 5,450 employees in the United States, including around 1,000 in Rhode Island, and has expressed concern over the present authority of the Interstate Wire Act. In its complaint, the corporation allegedly claimed that it faces the stark alternative of "either fundamentally restructuring or closing its business" or risking "a federal felony prosecution" if it does not receive clarification.
IGT claims that the 2018 ruling is illegal and that the Interstate Wire Act only applies to "bets or wagers on any sporting event or contest" because of the "severe and immediate hardship" it has caused.
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