12/27/11: Obama Administration Supports Online Gambling

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A new opinion from President Obama’s Justice Department opens the door for states to allow various forms of online gambling operated by lotteries and other gambling interests.

Proponents of legalized online gambling say the business could provide new sources of revenue for state coffers. But others say that the free-flowing nature of the Internet is ill-suited for state gambling plans.

Under previous presidential administrations, the Justice Department had declared that based on its interpretation of the Wire Act, states shouldn’t allow online gambling even for bets placed within their borders. In a sweeping reversal, the Justice Department’s Office of Legal Counsel said that such gambling within a state would no longer be considered illegal. Opponents say the harm caused to chronic gamblers will be enormous.