The US Justice Department issued a ruling Friday that may spell good news for the future of online poker.

The decision, written in September but made public last Friday, found the Act’s prohibition of wagers via telecommunications crossing state lines or international borders refers only to bets on a “sporting event or contest” and not to lottery tickets sold online. The decision doesn’t mention online poker, but some reason that the ruling will pave the way for online poker. A new opinion issued by the Assistant Attorney General Virginia A. Seitz states that “interstate transmissions of wire communications that do not relate to a ‘sporting event or contest’ fall outside the reach of the Wire Act.”

As states like Nevada are already approving online poker regulations, Pappas detailed, “This will provide policymakers at both the state and Federal level with the legal confidence to move forward with licensing and regulation of online poker and other non-sporting activity within their respective jurisdictions.”
Pappas continued, “However, it is our hope that our Federal policymakers see this as an incentive to move quickly to enact Federal licensing and regulation before various states produce a mix of individual state schemes that may not be the best model to serve consumers.”

While the effect on existing offshore online poker rooms will likely be negligible, the main point of celebration for U.S. online poker players is that this means that once states pass online poker regulations they will be free to network their online poker rooms. This will add much needed liquidity to small states that decide to legalize and regulate online poker within their borders. Just yesterday, Nevada legalized online poker for their residents. Once other states legalize online poker as well, Nevada would be able to enter into partnerships with other states without interference from the federal government.

The clock could be ticking for Federal legalization of online poker. With 2012 being an election year, members of Congress could overlook the revenue potential of legalized online poker and internet gaming in general, according to the latest poker news. Urging lawmakers to act on online poker soon after the New Year was PPA Chairman and former three-term Senator from New York Alfonse D’Amato, who charged, “We urge members of Congress to act quickly based on today’s announcement and pass legislation like HR 2366 to license and regulate online poker at the Federal level.”

This news broke at the end of business on the Friday before Christmas. There is likely to be more news on this topic in the coming weeks. There are quite a few legal opinions on what this means to the online poker industry. After the holidays we hope to receive more clarification as to what today’s Department of Justice opinion change means to existing online poker rooms as well as future state regulated online poker.