US Justice Department Restricts Online Gambling, Blockchain Projects
January 17, 2019, blockchainreporter.net, by Edmund NG
Back in 2011 the U.S. Wire Act only barred sports betting under the law that’s been passed 50 years earlier. Now, it bars all internet gambling which involves interstate transactions. Besides lotteries and online gambling companies, The U.S. Justice Department’s decision to expand a federal prohibition on internet gambling will also affect blockchain-based betting platforms. One of these platforms could be Augur, which is a cryptocurrency and an online betting platform that powers prediction markets. It can be used to bet on different things in the prediction markets such as political outcomes, economies, and sporting events.
Chilling effect on the industry
The federal law forbids transmission of related information and wagers across the state line. In line with this, it could also affect all online gambling transactions as it’s difficult to guarantee that no payments are routed through different states.
In a statement by an attorney with Glaser Weil Fink Howard Avchen & Shapiro LLP, Aaron Swerdlow, he said, “This will have a chilling effect on investment and expansion in the industry. You are going to see legal challenges.” To read entire article click here.
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