LANSING, Mich., Jan. 22, 2021 /CNW/ - NeoPollard
Interactive LLC ("NeoPollard Interactive" or "NPi"),
jointly owned by Pollard Banknote Limited ("Pollard Banknote")
(TSX: PBL) and NeoGames S.A. (Nasdaq: NGMS), is
thrilled with the decision rendered by the First Circuit of the
U.S. Court of Appeals on January 20,
2021 that unequivocally reconfirmed that the federal Wire
Act is limited to sports betting and, therefore, does not pertain
to state-run lotteries. This decision confirms the ruling of the
U.S. District Court for the District of New Hampshire in 2019 that was appealed by the
U.S. Federal Department of Justice. Overall, this decision is
important for the U.S. lottery industry as a whole by alleviating
concerns related to the legality of traditional retail or online
lottery sales (also known as "iLottery") which rely on the
transmission of lottery data over the Internet.
The Wire Act subjects to criminal liability any person who
"knowingly uses a wire communication facility for the transmission
in interstate or foreign commerce of bets or wagers or information
assisting in the placing of bets or wagers on any sporting event or
contest, or for the transmission of a wire communication which
entitles the recipient to receive money or credit as a result of
bets or wagers, or for information assisting in the placing of bets
or wagers." In 2011, the Department of Justice's Office of
Legal Counsel ("OLC") concluded that the Wire Act only applied to
sports betting. Following that opinion, many lotteries began
to offer non-sports gaming products over the Internet, reasonably
relying on the OLC's conclusions that their activities were
lawful.
In January 2019, the OLC reversed
that prior decision and released a new opinion concluding that the
Wire Act extended beyond the sports-betting context to criminalize
interstate transmissions of all bets or wagers—thereby overturning
the conclusions of the 2011 opinion and threatening to shut down
the burgeoning iLottery industry.
Working alongside the New Hampshire Lottery Commission ("New
Hampshire Lottery"), NeoPollard Interactive and Pollard Banknote,
the New Hampshire Lottery's iLottery providers, immediately sought
a declaratory judgment in federal court that the OLC's new Wire Act
interpretation was based on an incorrect reading of the statute. In
June 2019, the U.S. District Court
for the District of New Hampshire
confirmed that the federal Wire Act applies only to sports-betting
activities. The OLC appealed that decision.
In this latest judgement, the First Circuit affirmed the
District Court's June 2019 decision
thus restoring the 2011 interpretation that limited the Wire Act to
sports betting. By upholding the 2011 interpretation that the Wire
Act applies only to bets or wagers on a sporting event or contest,
this ruling safeguards the New Hampshire Lottery, NeoPollard
Interactive and Pollard Banknote, specifically, and all other
iLottery operators, generally, from the threat of unlawful
prosecution.
In addition, and equally importantly for other state lotteries,
any concerns about the pooling of bets or the transmission of
wagers in connection with national and regional multi-state games
such as Powerball® and Mega Millions, whether through traditional
retail or online channels, have been completely eliminated.
"We are very happy with the recent judgement confirming, yet
again, the 2011 interpretation of the Wire Act," said Liz Siver, General Manager, NeoPollard
Interactive. "This is a great success for the Lottery industry
generally, and iLottery specifically, as it ensures that the sale
of both iLottery games and national and regional multi-state games
can continue to be strong contributors to lottery sales and the
good causes that U.S. lotteries support. In terms of iLottery, we
know first-hand the positive effect that these operations have had,
not only on state resources, but on player experience as well. The
current worldwide pandemic has amplified the importance of this new
channel. We look forward to continuing to provide state-of-the-art
iLottery products and strategies to lotteries with an increasing
array of products within the digital landscape."
About NeoPollard Interactive
Born in the digital domain, NeoPollard Interactive LLC ("NPi")
is an award-winning supplier of best-in-class iLottery solutions to
the North American lottery market. Serving the largest share of
U.S. lotteries that currently sell online, NPi helped pioneer the
successful introduction of iLottery in the U.S. and, is
North America's proven partner of
choice to enable regulated lotteries to design and deploy complex
gaming solutions in support of generating incremental revenue for
good causes through the online channel. NPi offers cutting-edge
technology, a full suite of managed services, and the industry's
top performing game content, as part of its innovative and
comprehensive approach to partnering for iLottery success. Jointly
owned by Pollard Banknote Limited (TSX: PBL) and NeoGames
S.A.(Nasdaq: NGMS)—both globally recognized industry leaders—NPi
powers the most profitable iLottery programs. Visit us at
www.neopollard.com.
About Pollard Banknote
Pollard Banknote is a leading lottery partner to more than 60
lotteries worldwide, providing high quality instant ticket
products, licensed games, Schafer Systems and Fastrak retail
merchandising solutions, and a full suite of digital offerings,
ranging from world-class mkodo game apps to comprehensive player
engagement and iLottery solutions, including strategic marketing
and management services. The company is a proven innovator and has
decades of experience helping lotteries to maximize player
engagement, sales, and proceeds for good causes. Pollard Banknote
also provides pull-tab tickets, bingo paper, and its Diamond Game and Oasis-branded electronic ticket
machines to charitable and other gaming markets in North America. Established in 1907, Pollard
Banknote is owned approximately 66.7% by the Pollard family and
33.3% by public shareholders, and is publicly traded on the TSX
(PBL). For more information, please visit our website at
www.pollardbanknote.com .
About NeoGames
NeoGames (Nasdaq: NGMS) is a technology-driven innovator and a
global provider of iLottery solutions for national and
state-regulated lotteries. NeoGames' full-service solution combines
proprietary technology platforms with the experience and expertise
required for successful iLottery operations. NeoGames' pioneering
game studio encompasses an extensive portfolio of engaging online
lottery games that deliver an entertaining player experience. As a
trusted partner to lotteries worldwide, the company works with its
customers to maximize their success, offering a comprehensive
solution that empowers them to deliver enjoyable and profitable
iLottery programs to their players, generate more revenue, and
direct proceeds to good causes. For more information
visit www.neogames.com.
Forward-looking Statements
Certain statements in this press release may constitute
"forward-looking" statements and information, which involve known
and unknown risks, uncertainties, and other factors that may cause
actual results, performance, or achievements to be materially
different from any future results, performance, or achievements
expressed or implied by such forward-looking statements. When used
in this document, such statements include such words as "may,"
"will," "expect," "believe," "plan," and other similar terminology.
These statements reflect management's current expectations
regarding future events and operating performance and speak only as
of the date of this document. There should not be an expectation
that such information will in all circumstances be updated,
supplemented, or revised whether as a result of new information,
changing circumstances, future events, or otherwise.
SOURCE NeoPollard Interactive