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GAMING CONTROL BOARD
PO. Box 69060
HARRISBURG, 

17106-9060

Charmer):
?rearms Director DAVID M. l'lAltAStIlt
30?: Walnut Street
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Phone: 3468300 LUGAN

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TO: All Casino General Managers and Counsel

Department of Justice?s Opinion ?Reconsidering Whether the
Wire Act Applies to Non-Sports Gambling?

As we all know by now, the Department of ustice?s opinion ?Reconsidering Whether
the Wire Act Applies to Non-Sports Gambling? made public on January 14, 2019 has been
the Subject of intense scrutiny within the gaming industry. That Opinion reverses a 201 1
Department of Justice Opinion which previously provided a view that the Wire Act?s
prohibitions on the interstate transmission of bets and wagers only applied to sports wagering
and not to other types of gambling which could be conducted via the intemet in jurisdictions
which have made the activity legal. The 201 1 Opinion paved the way for States to legalize
internet gaming including slots, table games and poker, as well as to enter into interstate shared
liquidity agreements to enhance poker products available to member states. The just-released
Opinion, however, places signi?cant restrictions on the future conduct of internet-based gaming.

Undoubtedly, the Wire Act applies to the ?interstate? transmission of (1) bets or wagers
on sporting events and, as per the new Opinion, also to the interstate transmission of (2) wire
communications which entitle the recipient to receive money or credit as a result of a bet or
wager, or (3) for information assisting in the placing of bets or wagers. These latter two items
were previously thought to apply only to sports wagering but now are deemed to apply to any
forms of gambling conducted via wire or internet. The Opinion does not, however, negate the
premise that ?intrastate? activity as provided for by State law is permitted. Thus, with any
forms of internet or mobile gambling, it appears that diligence in assuring that the transmission
of bets and wagers, payments and credits as a result of bets or wagers, as well as the information
assisting in placing those bets and wagers [subject to does not cross state lines is
paramount.

As continues to implement the General Assembly?s gaming expansion
legislation, Act 42 of2017, and as you, as certificate holders and operators licensed by the
Board, continue to move forward to expand your gaming offerings, it is vital that you examine
yOur proposed gaming operation in to ensure that you are in compliance with the

January 18, 2019
Page 2 of2

Department of ustice?s interpretation of the Wire Act. Speci?cally, while Board regulation

809.3 - Location of equipment, provides that ?the interactive gaming devices and associated
equipment may be located in a restricted area on the premises of the licensed facility, in an
interactive gaming restricted area within the geographic limits of the county in this
Commonwealth where the licensed facility is situated or any other area, located within the
United States, provided the location adheres to [enumerated conditions]?, Regulation 809.3
was promulgated prior to the recent Department of Justice Opinion. As a result of the Opinion
and at this time, we no longer believe it is consistent with law as articulated in the Opinion to
locate the interactive gaming devices and associated equipment in any jurisdiction other than
in 

While we fully recognize that this change may alter the plans of licensees in
implementing expanded gaming offerings, it is a change not of the Board?s making but one
commanded by the changing interpretation by federal law enforcement authorities. It is your
obligation to comply with the federal law in all respects in establishing your gaming operations
which must now be entirely ?intrastate.? Please examine your prior submissions to the Board
which may be impacted by this requirement and provide an updated narrative as to how you will
structure your operations to assure compliance with the new Department of Justice Opinion on
the applicability of the Wire Act. In addition, you should examine the effect of the Opinion on
the topic of payment processing of wagers, as well as any anticipated issues or effects the
Opinion may create for banking institutions with whom you interact.

Please note that the Deputy Attorney General issued a memo to United States Attorneys
and the Director of the Federal Bureau of Investigation stating that as an exercise of discretion,
the Department of Justice Attorneys should refrain from applying the new interpretation in
criminal or civil actions to persons who engaged in conduct that violated the Wire Act in reliance
on the prior 2011 opinion for a period of 90 days - meaning that enforcement could be expected
to persons and activities not in conformance with this opinion on or after April 15, 2019. In
order to minimize risk to licensees and the gaming industry in the Commonwealth,
I am requesting that you provide your plans for complying with the Wire Act, as now interpreted,
within the next 30 days.

I want to express my thanks in advance as we navigate through this change to implement
a fully intrastate gaming environment.

Sincerely yours,

KW 
Kevin F. O?Toole
Executive Director

KFOzpll

cc: R. Douglas Sherman, Chief Counsel, PGCB
Claire Yantis, Administrative Director, PGCB
Paul Resch, Director, Bureau of Gaming Operations, PGCB
Heather Worner, Director, Of?ce of Gaming Laboratory, PGCB
Christin Heidingsfelder, Dep. Secretary for Administration, DOR
Thomas Gohsler, Chief Counsel, DOR