The federal government has changed its long-held position on Internet gambling, asserting that the federal Wire Act of 1961 applies only to sports betting.

Forbes.com on Friday called the reversal "a huge shift for the Justice Department, which has long relied on the law when asserting that all forms of Internet gambling, especially online poker, are illegal."

U.S. Deputy Attorney General James Cole wrote in a letter Friday that "the Department’s Office of Legal Counsel has analyzed the scope of the Wire Act, 18 U.S.c § 1084, and concluded that it is limited only to sports betting." The Wall Street Journal reported that the opinion was signed in September but only made public Friday.

Forbes called the shift a big win for state lotteries that hope to use the Internet to sell lottery tickets to adults. It's also a major boon for online poker.

The government's previous position played a big role in the recent crackdown on online poker sites. But now, Internet poker isn't barred by any federal statute.

"This is a much needed clarification of an antiquated and often confusing law," said John Pappas, executive director of the Pokers Players Alliance. "For years, legal scholars and even the courts have debated whether the Wire Act applies to nonsporting activity. Today's announcement validates the fact that Internet pokers does not violate this law."

The American Gaming Association, which represents the U.S. commercial casino industry, said the change "validates the urgent need for federal legislation to curb what will now be a proliferation of domestic and foreign, unlicensed and unregulated gaming websites without consistent regulatory standards and safeguards against fraud, underage gambling and money laundering.

The Justice Department's announcement came one day after the Nevada Gaming Commission made history by adopting a set of rules to oversee online poker. Nevada moved closer to having the nation's first intrastate online poker sites.

After the commission's action, Gaming Control Board Chairman Mark Lipparelli gave a "road map" of the next steps Nevada will take before poker sites start accepting cash, according to CardPlayer.com.

Lipparelli said technology and internal control standards will be ironed out before license applications are sent to the commission for approval, the website reported.