Since 1961, all gambling involving interstate telecommunications, including online gambling, has been prohibited by the Wire Act, which was originally written to strike at a major funding source for the mob. When the Internet emerged, illegal offshore online casinos flourished by targeting young Americans. Congress responded by enacting the Unlawful Internet Gambling Enforcement Act of 2006 — giving law enforcement additional tools to shut down online casinos. Federal prosecutors used these tools to close most illegal online gambling in the U.S.

But in December 2011, bureaucrats in Barack Obama’s Justice Department issued an opinion claiming that the Wire Act didn’t prohibit online gambling, reversing 50 years of precedent. The opinion was deeply flawed. It failed to properly apply the rules of statutory construction and ignored judicial decisions that undermined its conclusion. The bureaucrats sought no input from Congress, states, or law enforcement. No consideration was given to cybersecurity implications — or the potential for offshore gambling companies to prey on children, the poor, or those with gaming addictions.