What is the Wire Act? It's a 1961 federal law, 18 U.S.C. § 1084, that makes it a crime for a person in the business of betting to knowingly use wire communications for interstate or foreign bets. Since a 2021 appeals ruling, it's read as covering sports betting, and its wording targets operators rather than individual bettors.
The Wire Act (18 U.S.C. § 1084) targets people engaged in the business of betting or wagering, with fines and up to two years in prison.
The Justice Department said in 2011 it covers only sports betting, reversed most of that in 2018, and lost on the point in the First Circuit on January 20, 2021.
It exempts news reporting and betting information sent between places where the betting is legal.
It doesn't license or ban online casinos for players; state law decides what's legal where you live.
Offshore casinos aren't licensed by any US state, whatever the Wire Act's reach.
Citation
18 U.S.C. § 1084
Enacted
1961
Who it targets
Persons in the business of betting or wagering
Maximum prison term
2 years, plus fines
Key ruling
NH Lottery Commission v. Rosen, January 20, 2021
Scope after ruling
Sports betting
What is the Wire Act? A plain-English answer
The Wire Act is a federal criminal law from 1961, written to stop bookmakers from taking bets across state lines by telephone. It's codified at 18 U.S.C. § 1084, and its key words are 'engaged in the business of betting or wagering'. That phrase points it at the business side of gambling, not the customer.
Its modern importance comes from one long argument: does it reach only sports betting, or casino games, poker and lotteries too? The Justice Department has answered both ways, and a federal appeals court settled the question for the parties in 2021. This answer is part of our online casino questions series; the Wire Act law guide goes into more depth, and the Wire Act glossary entry gives the short definition.
A person in the business of betting who knowingly uses a wire facility to send interstate or foreign bets, information assisting bets on sporting events or contests, or a communication entitling someone to money or credit from bets
(a) Penalty
Fine, up to two years in prison, or both
(b) Exemptions
News reporting of sporting events, and betting information sent from a state or country where the betting is legal into one where it's legal
(d) Carriers
On written notice from law enforcement, an FCC-regulated common carrier must stop or refuse service used for illegal gambling information
Note the phrase 'on any sporting event or contest'. Where those words attach in subsection (a) is exactly what the Justice Department and the courts disagreed about. The official version is also on GovInfo (opens in a new tab).
Who the Wire Act applies to: operators, not bettors
By its wording, the Act applies to people engaged in the business of betting or wagering. A recreational player placing a bet isn't in that business, which is why federal Wire Act cases have focused on bookmakers and operators.
That doesn't make every bet lawful. State laws can and do prohibit internet gambling by individuals, and Washington's RCW 9.46.240, for example, makes knowingly sending or receiving gambling information over the internet a class C felony. Two other federal laws, UIGEA and the Illegal Gambling Business Act, also aim at businesses and take their cue from state law. See can I get in trouble for playing online casinos for the player view.
The Wire Act and the 2011 and 2018 Justice Department opinions
In 2011, the Justice Department's Office of Legal Counsel was asked whether Illinois and New York could sell lottery tickets online using out-of-state processors. It concluded the Wire Act's prohibitions are limited to sports-related gambling, so the lotteries were fine. The CRS Legal Sidebar (opens in a new tab) summarizes that opinion; its exact date wasn't recorded in the sources checked.
The 2018 OLC opinion (opens in a new tab), titled 'Reconsidering Whether the Wire Act Applies to Non-Sports Gambling', reversed course. Dated November 2, 2018, published December 20, 2018 and announced in January 2019, it found that only the betting-information prohibition is limited to sports, so the others reach non-sports betting. It also said UIGEA didn't change the Act's scope. Deputy Attorney General Rod Rosenstein told prosecutors to wait 90 days before applying it.
New Hampshire Lottery Commission v. Rosen: the 2021 ruling
New Hampshire's Lottery Commission sued, worried that the 2018 reading threatened its online lottery. On January 20, 2021, the U.S. Court of Appeals for the First Circuit held that the Wire Act's prohibitions apply only to interstate wire communications related to bets on sporting events or contests, and that it doesn't cover state lottery sales. The First Circuit opinion (opens in a new tab) affirmed the lower court, though it vacated the order setting aside the 2018 opinion as unnecessary.
On June 18, 2021, a group of state attorneys general wrote to Attorney General Merrick Garland that the ruling 'directly binds the Department only as to the specific parties in that lawsuit', and asked the Department to rescind the 2018 opinion. Whether the Supreme Court reviewed the case wasn't found in the sources checked. The New Hampshire page covers that state's lottery and sports betting.
Wire Act timeline: 1961 to today
Key Wire Act dates
Date
Event
1961
Wire Act enacted, now 18 U.S.C. § 1084
2006
UIGEA enacted; the 2018 OLC opinion later said it didn't change the Wire Act's scope
2011
OLC opinion: Wire Act limited to sports gambling
May 14, 2018
Murphy v. NCAA strikes down PASPA, letting states legalize sports betting
November 2, 2018
New OLC opinion dated, reaching most non-sports betting
December 20, 2018
2018 opinion published; announced January 2019 with a 90-day delay
January 20, 2021
First Circuit rules the Act covers only sports-related wagers
June 18, 2021
State attorneys general ask DOJ to rescind the 2018 opinion
Murphy v. NCAA matters here because it opened the door to state-licensed sportsbooks, which now must keep bets within state lines or rely on the legal-to-legal exemption. The PASPA and Murphy v NCAA page explains that ruling.
What the Wire Act means for sports betting and online casinos today
For sports betting, the Act is the reason licensed sportsbooks operate state by state. The exemption in subsection (b) covers information sent between places where the betting is legal, and the First Circuit's reading keeps sports at the center of the law. See is sports betting legal in my state for the map.
For online casinos and poker, the First Circuit's ruling means the Wire Act is read as not reaching non-sports games in that circuit, though the binding scope is disputed. Legality for casino games then turns on state law, which is why only seven states license online casinos. The states with legal online casinos page lists them, and is online poker legal in the US covers poker.
Does the Wire Act make offshore casinos legal in the USA?
No. The Wire Act's narrow reading doesn't license anything. An offshore casino still isn't licensed by any US state, and state regulators such as Michigan's Gaming Control Board continue to send cease-and-desist letters to unlicensed operators. The cease-and-desist letters page tracks those actions.
No state regulator oversees an offshore casino's games or payouts.
No state-backed protection exists for balances held offshore.
State law, not the Wire Act, decides whether playing is lawful where you live.
A site claiming the Wire Act makes it legal everywhere is misreading the law.
Ask whether you're a business taking bets or a player placing them; the Act's wording targets the business.
Ask whether the activity is sports betting, the area the First Circuit says the Act covers.
Check your state's law, which decides whether online casino or poker play is lawful where you are.
Check whether the site holds a license from your state's regulator; if not, it's offshore or unlicensed.
Read the site's terms on withdrawals and disputes before you deposit anything.
Offshore casino offers and the Wire Act
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The Wire Act doesn't make offshore casinos legal or licensed. These partners are offshore and not licensed by any US state, so check your state's law before you play.
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Frequently asked questions
What exactly does 18 U.S.C. § 1084 make a crime?
It prohibits a person in the business of betting from knowingly using wire communications to transmit interstate or foreign bets, information assisting bets on sporting events, or communications entitling someone to money from bets. The penalty is a fine, up to two years in prison, or both. It exempts news reporting and information sent between places where the betting is legal. The Wire Act page quotes the key subsections.
Is online casino play covered by the Wire Act?
Under the First Circuit's 2021 ruling, it applies only to sports-related wagers, so not to online casino games. The Justice Department's 2018 opinion had said otherwise for most of the Act, and state attorneys general noted the ruling directly binds the Department only as to the parties. Either way, state law decides whether online casino play is lawful. See which states allow online casinos.
Is it illegal for me to bet online under the Wire Act?
The Wire Act's wording targets people in the business of betting, not individual bettors. That doesn't settle your position, because state laws can prohibit internet gambling by players; Washington's RCW 9.46.240 is one example, treating it as a class C felony. This page doesn't predict any outcome for an individual. The Washington online casinos page explains that state's law.
What did the 2018 Wire Act opinion say?
It said most of the Wire Act's prohibitions reach non-sports gambling, and only the ban on information assisting bets is limited to sporting events. The opinion, from the Justice Department's Office of Legal Counsel, was dated November 2, 2018 and reversed the 2011 opinion on that point. Prosecutors were told to wait 90 days before applying it. The UIGEA page explains the opinion's view that UIGEA didn't change the Act.
Why does the New Hampshire Lottery case matter for the Wire Act?
It was the lawsuit that tested the 2018 opinion. New Hampshire's Lottery Commission sued, and on January 20, 2021 the First Circuit held that the Wire Act applies only to communications about bets on sporting events or contests and doesn't cover state lottery sales. Whether the Supreme Court took up the case wasn't found in the sources checked. The Wire Act glossary entry gives a quick summary.
Is the Wire Act about wire communications while UIGEA is about payments?
Yes. The Wire Act targets the use of wire communications for betting, while UIGEA targets payments. UIGEA, from 2006, bars gambling businesses from accepting credit, electronic transfers, checks and similar payments in connection with unlawful internet gambling, and it defines unlawful by reference to state or federal law. Neither makes placing a bet a federal crime for the player. The what is UIGEA answer covers it in full.
Why don't licensed sportsbooks take bets across state lines?
It's the main federal reason they don't. The Act bars businesses from using wire communications for interstate sports bets, with an exemption for information sent between places where the betting is legal. Since Murphy v. NCAA in 2018 let states legalize sports betting, licensed books have operated state by state. The sports betting laws page explains how states license them.
Can an offshore casino rely on the Wire Act to be legal?
No. A narrow reading of the Wire Act doesn't license anyone. Offshore casinos aren't licensed by any US state, state regulators keep issuing cease-and-desist letters against them, and players have no state regulator to turn to in a dispute. Whether playing is lawful where you live depends on your state's law. Read are offshore casinos safe before depositing.
Does the 1961 Wire Act cover online poker sites?
Under the First Circuit's 2021 reading, the Wire Act does not reach online poker, because the court limited the Act to bets on sporting events or contests. The Justice Department's 2018 opinion had taken the wider view that most of the Act covers non-sports games, and state attorneys general later noted the ruling directly binds the Department only as to the parties in that case. In practice, whether online poker is lawful for you depends on your state's law. Our online poker laws page and is online poker legal in the US set out where it stands.
Does the Wire Act stop states from selling lottery tickets online?
No, not under the reading that has held since 2021. The issue first arose when Illinois and New York wanted to sell lottery tickets online using out-of-state processors, and the 2011 Justice Department opinion said the Wire Act covered only sports betting, so the plans could go ahead. When the 2018 opinion widened that reading, New Hampshire's Lottery Commission sued, and the First Circuit held on January 20, 2021 that the Act does not cover state lottery sales. Our state lotteries online guide explains which lotteries sell on the web, and the Wire Act law page covers the case.
Can phone and internet companies be ordered to cut off gambling sites under the Wire Act?
Yes, in a limited way: subsection (d) of the Wire Act deals with common carriers. When a carrier regulated by the Federal Communications Commission gets written notice from a law enforcement agency that its service is being used to send or receive gambling information in breach of the law, it must stop or refuse that service. Blocking at home is a separate matter you control yourself; our guide to blocking gambling sites and the Wire Act glossary entry explain both.
What is the legal-to-legal exemption in the Wire Act?
The legal-to-legal exemption, in subsection (b) of 18 U.S.C. § 1084, lets betting information pass between two places where that betting is legal. It also protects news reporting of sporting events. The exemption covers information assisting bets, sent from a state or country where the betting is lawful into another where it is lawful too. It is one reason licensed sportsbooks have built their businesses around state lines since Murphy v. NCAA in 2018. Our PASPA and Murphy v NCAA page and sports betting laws guide explain how states use it.
Who enforces the Wire Act?
The Wire Act is a federal criminal law, so it is enforced by the US Justice Department and federal prosecutors. That is why the Department's Office of Legal Counsel opinions in 2011 and 2018 mattered so much: they told prosecutors how far the Act reaches. When the 2018 opinion came out, Deputy Attorney General Rod Rosenstein told prosecutors to wait 90 days before applying it. States enforce their own gambling laws separately, through regulators and attorneys general. Our state regulators page lists the state bodies, and the Illegal Gambling Business Act page covers another federal tool.
How do Michigan online casinos operate legally if the Wire Act exists?
Michigan's online casinos run under state law, and the First Circuit has read the Wire Act as covering only sports bets. Michigan's Lawful Internet Gaming Act (PA 152 of 2019) authorizes the market, which launched on January 22, 2021, and the Michigan Gaming Control Board lists 15 authorized online casino platform providers. Those sites accept players located in Michigan, which keeps play inside the state. Offshore sites have no such license, and the board sends them cease-and-desist letters. Our Michigan online casino guide and states with legal online casinos page explain the licensed markets.
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