At that time, they stated that the Wire Act would only apply to sports betting and not other types of gambling. In 2011, the Justice Department issued a memorandum stating that it had reinterpreted the Wire Act. When New York and Illinois began selling lottery tickets online they wanted to make sure they were not violating any federal laws, so they asked the justice department for some guidance. Because of the Federal Wire Act, the vast majority of states did not have any online gambling until 2011. Technically, online gambling is still illegal in the United States. Is Online Gambling Legal in the United States?