Justice Department files motion to dismiss IGT’s Wire Act lawsuit
B2B gaming tech provider had filed suit against DOJ over Trump Era interpretation of federal statute
The US Department of Justice (DOJ) has filed a motion with a district court judge to dismiss an IGT lawsuit over a 2018 interpretation of the Federal Wire Act, arguing that the B2B gaming tech provider hasn’t proven it faces an imminent or substantial threat of prosecution.
In November, IGT filed suit in the US District Court for the District of Rhode Island against the Trump Era DOJ Wire Act opinion that extended the prohibition of interstate communications related to sports betting to all types of gambling.
IGT argued the reinterpretation jeopardized its non-sports betting business segments, as it opened the firm up to potential federal prosecution.
While the New Hampshire Lottery was able to successfully gain exemption from the 2018 opinion after suing the DOJ, an appeal by the Trump Administration was partially successful in that the exemption was merely upheld.
The opinion itself, however, was not touched, which represented a key point of contention for IGT.
In its lawsuit, IGT was seeking declaratory relief as well as a declaration that the 2018 opinion was incorrect – something the Biden Administration DOJ has allowed to remain opaque.
In its recent motion, the DOJ has made it clear it has a different take, stating IGT “implicitly seeks to extend the benefit of favorable First Circuit precedent [in New Hampshire] to other jurisdictions where it engages in non-sports gambling – jurisdictions where courts have not yet decided whether the Wire Act reaches any non-sports gambling.”
In other words, it is under the purview of each individual state to determine the validity of the 2018 interpretation, not the federal government.
As for the prospect of prosecution IGT has claimed it faces, the DOJ countered that the plaintiff never in fact made reference to a specific threat.
“IGT [does not] point to a single prosecution or threatened against any party [sic] engaged in like conduct,” the DOJ stated in its motion.
“Under these circumstances, the perceived threat that IGT may be prosecuted in some other jurisdiction for its non-sports gambling activities is merely speculative and certainly not imminent or substantial.”
Within that context, the DOJ is seeking a dismissal of the lawsuit.