The Department of Justice in the US came down hard on Internet gambling sites in the past few months, and two high ranking senators now want answers on why it took so long for the indictments. Senate Majority Leader Harry Reid and Minority Whip Jon Kyl have sent a letter to the DOJ. In the letter, Reid and Kyl questioned several aspects of the crackdown that took place when PokerStars and Full Tilt Poker was raided. According to the Las Vegas Sun, the main issue was why the DOJ gave off signals that online poker was legal by not going after the sites sooner. “This lack of activity by law enforcement led to a significant and growing perception that operating Internet poker and other Internet gambling did not violate US laws, or at least that the Department of Justice thought the case was uncertain enough that it choose not to pursue enforcement actions,” read the letter. The idea that Reid and Kyl jointly sent the letter was a bit shocking to industry insiders. Kyl has been a long time opponent of online gambling regulations, but that stance has softened as the senator has learned more of the facts surrounding the issue. Back when his opposition was strongest, Kyl indicated that gambling in the home could become a problem that would effect children, families, and financial situations around the US. Several studies have shown that the technology exists to safeguard online gambling. Reid also was at one time against Internet gambling regulations. Late last year, however, with revenue sagging in Nevada, Reid took up the cause and changed his stance with the idea that regulation could help the struggling gambling industry in the state he represents. Asking for a clarification of the law could lead to an entire new wave of Internet gambling in the US. Casinos that offer slots, blackjack, roulette, and other popular casino games have long maintained that these forms of online gambling were not illegal. If the DOJ answers Reid and Kyl’s letter, those forms of gambling will have to be detailed in the response if they are illegal. The biggest problem that could come from the senators’ letter could be seen at the state level. The letter asserts that state officials have, in essence, been giving the green light by the DOJ to move forward with their Internet gambling plans. “We have heard several officials from various state lotteries boasted that they have obtained the Department of Justice’s effective consent by writing letters of their plans that stated if no objection was received they would proceed with their Internet gambling plans,” said the letter. Several states or jurisdictions have now authorized online gambling. Washington DC was set to go live with an online casino in September, but that now appears to be delayed while the City Council holds a series of public forums on the issue. Nevada lawmakers have passed legislation regulating online poker, but there exists a stipulation that the online casinos cannot go live until the form of gambling is approved on a federal level.
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