Wire Act – IHA Clarification Introduced

The racing industry and the Department of Justice have a long-standing disagreement regarding the application of the federal Wire Act to racing’s interstate wagering activities.  The racing industry maintains that the federal Wire Act (18 USC 1084) does not prohibit activities allowed under the Interstate Horseracing Act, which was amended in 2000 specifically to provide that interstate wagers made over the “telephone or any other electronic media,” such as the Internet, are permitted provided the requirements of the IHA are followed. 

House Bill

Congressman Chris Gibson (R-NY) has introduced federal legislation to clarify that federal law does not prohibit horse racing from offering interstate wagering under the IHA.  The bill is co-sponsored by Congressman Kurt Schrader (D-OR).

The Wire Clarification Act of 2011 would amend the federal law to make it clear that that statute does not apply to any bets or wagers, including advance-deposit wagering, allowed under the IHA.    

The bill also provides that wagers permissible under the IHA are not prohibited or regulated under the Unlawful Internet Gambling and Enforcement Act (UIGEA) or the regulations adopted pursuant to UIGEA in December, 2008 by the Federal Reserve Board and the Department of the Treasury.

The bill is similar to legislation introduced in the last Congress by former Representative Scott Murphy.

Congressional Action

The bill has been referred to the House Committee on the Judiciary. 

AHC Position

The AHC supports this legislation.