Compliance Updates
NeoPollard Interactive and New Hampshire Lottery Prevail Against U.S. Government Appeal in iLottery Case
NeoPollard Interactive LLC, jointly owned by Pollard Banknote Limited and NeoGames S.A., is thrilled with the decision rendered by the First Circuit of the U.S. Court of Appeals on January 20, 2021 that unequivocally reconfirmed that the federal Wire Act is limited to sports betting and, therefore, does not pertain to state-run lotteries. This decision confirms the ruling of the U.S. District Court for the District of New Hampshire in 2019 that was appealed by the U.S. Federal Department of Justice. Overall, this decision is important for the U.S. lottery industry as a whole by alleviating concerns related to the legality of traditional retail or online lottery sales (also known as “iLottery”) which rely on the transmission of lottery data over the Internet.
The Wire Act subjects to criminal liability any person who “knowingly uses a wire communication facility for the transmission in interstate or foreign commerce of bets or wagers or information assisting in the placing of bets or wagers on any sporting event or contest, or for the transmission of a wire communication which entitles the recipient to receive money or credit as a result of bets or wagers, or for information assisting in the placing of bets or wagers.” In 2011, the Department of Justice’s Office of Legal Counsel (“OLC”) concluded that the Wire Act only applied to sports betting. Following that opinion, many lotteries began to offer non-sports gaming products over the Internet, reasonably relying on the OLC’s conclusions that their activities were lawful.
In January 2019, the OLC reversed that prior decision and released a new opinion concluding that the Wire Act extended beyond the sports-betting context to criminalize interstate transmissions of all bets or wagersâthereby overturning the conclusions of the 2011 opinion and threatening to shut down the burgeoning iLottery industry.
Working alongside the New Hampshire Lottery Commission (“New Hampshire Lottery”), NeoPollard Interactive and Pollard Banknote, the New Hampshire Lottery’s iLottery providers, immediately sought a declaratory judgment in federal court that the OLC’s new Wire Act interpretation was based on an incorrect reading of the statute. In June 2019, the U.S. District Court for the District of New Hampshire confirmed that the federal Wire Act applies only to sports-betting activities. The OLC appealed that decision.
In this latest judgement, the First Circuit affirmed the District Court’s June 2019 decision thus restoring the 2011 interpretation that limited the Wire Act to sports betting. By upholding the 2011 interpretation that the Wire Act applies only to bets or wagers on a sporting event or contest, this ruling safeguards the New Hampshire Lottery, NeoPollard Interactive and Pollard Banknote, specifically, and all other iLottery operators, generally, from the threat of unlawful prosecution.
In addition, and equally importantly for other state lotteries, any concerns about the pooling of bets or the transmission of wagers in connection with national and regional multi-state games such as PowerballÂź and Mega Millions, whether through traditional retail or online channels, have been completely eliminated.
“We are very happy with the recent judgement confirming, yet again, the 2011 interpretation of the Wire Act,” said Liz Siver, General Manager, NeoPollard Interactive. “This is a great success for the Lottery industry generally, and iLottery specifically, as it ensures that the sale of both iLottery games and national and regional multi-state games can continue to be strong contributors to lottery sales and the good causes that U.S. lotteries support. In terms of iLottery, we know first-hand the positive effect that these operations have had, not only on state resources, but on player experience as well. The current worldwide pandemic has amplified the importance of this new channel. We look forward to continuing to provide state-of-the-art iLottery products and strategies to lotteries with an increasing array of products within the digital landscape.”
SOURCE NeoPollard Interactive
Canada
Court Decision Upholds iGaming Ontario’s Model
iGaming Ontario has welcomed the decision of the Ontario Superior Court, which found that iGaming Ontarioâs model is consistent with the Criminal Code and that iGaming Ontario is conducting and managing igaming in the province.
âWe have always been confident in our model and are pleased that the court has ruled in our favour, and that Ontarians can continue to play with confidence in our regulated igaming market,â said Martha Otton, Executive Director of iGaming Ontario.
âOntarioâs model meets the requirements and contributes to the public good by protecting players, their data and their funds, while helping to fund priority public services in Ontario, and bringing well-paid, high-tech jobs and economic development to Ontario,â Otton added.
In dismissing the application brought forward by the Mohawk Council of KahnawĂ :ke (MCK), the Superior Court found that iGaming Ontario is the âoperating mindâ behind Ontarioâs competitive igaming market in accordance with the conduct and manage requirements of the Criminal Code.
iGaming Ontario will continue to conduct and manage igaming as it has since the launch of the regulated market on April 4, 2022.
Compliance Updates
Supremeland Gaming Continues U.S. Expansion With Supplier License Approval In Michigan
Supremeland Gaming, Inc., the emerging brand in American iGaming, has gained approval for a Supplier License in Michigan, marking the companyâs fourth U.S. state approval following the successful acquisition of interim approvals in Pennsylvania, New Jersey, and West Virginia.
Supremeland Gaming is approved to operate under this license and is now authorized to offer its cutting-edge innovation to the Great Lakes State. Their continued expansion underscores its commitment to pushing the boundaries of innovation in the iGaming industry.
Rickard Ăhrn, CEO of Supremeland Gaming, said: âWith approvals already in Pennsylvania, New Jersey, and West Virginia, our entry into Michigan underscores our dedication to serving players nationwide. We are excited about the opportunities this new market brings and look forward to delivering innovative, engaging, and responsible gaming solutions to the rapidly growing U.S. iGaming community.â
Supremelandâs game portfolio has garnered international appeal since its debut in November 2023. The innovative brand produces first-class games, including Red Panda Risingâą and its global debut, Munition Mineâą, for which its subsidiary, Powderkeg Studios, is shortlisted at the CasinoBeats Game Developer Awards.
Compliance Updates
Greyhound Advocates Applaud Gov. Ned Lamont for Signing Bill to Outlaw Dog Racing
The largest greyhound protection group in the world thanked Connecticut Governor Ned Lamont for signing a bill to outlaw greyhound racing, calling the new law a victory for everyone who cares about dogs.
âThe end of dog racing in Connecticut has finally come because of the hard work of dedicated lawmakers on both sides of the aisle. Greyhound advocates everywhere applaud Governor Lamontâs enthusiastic stand against this cruel industry. Connecticut now joins 42 other states that have already rejected this outdated and inhumane form of gambling,â said GREY2K USA President and General Counsel Christine A. Dorchak.
Greyhound racing is now illegal in 43 states, and only continues to exist at two tracks in West Virginia. After dog racing gradually declined for decades, Florida voters outlawed the activity in 2018 by a vote of 69% to 31%, closing twelve operational racetracks. A bill to prohibit gambling on greyhound racing nationwide was introduced in the 117th Congress and earned the support of 105 cosponsors and more than 250 humane groups, anti-gambling organizations, and local animal shelters.
All mainstream animal protection groups oppose greyhound racing due to animal welfare concerns. At the last two remaining dog tracks in West Virginia, state records indicate that 666 greyhounds were injured in 2022 including 218 dogs that suffered broken bones and five greyhounds that died. Thousands of dogs also endure lives of confinement at West Virginia tracks, kept in cages barely large enough for them to stand up or turn around for long hours each day.
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