iMEGA Voices Concerns for Anti-UIGEA Case

July 29, 2009 | News Category: Gaming Law

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After the hearing in the US Third Circuit Court of Appeals in the case in which iMEGA (Interactive Media Entertainment and Gaming Association) challenges the validity of the UIGEA (Unlawful Internet Gambling Enforcement Act) for vagueness, iMEGA's representatives are not feeling particularly pleased, and are, in fact, somewhat concerned.

The court case took an unusual turn that could foreshadow trouble for iMEGA's case. The judges pursued a line of questioning that seemed somewhat off topic, and did not focus their questions on what iMEGA considers to be the essence of the case.

iMEGA's attorneys made a point of stressing the issues that have come up as problems as a result of the implementation of the UIGEA, such as the issues surrounding the prohibition of payment processing for online gambling. The UIGEA made the payment processing illegal, however did not make the online gambling illegal. The UIGEA also has no definition of what exactly illegal online gambling is.

The questions from the court, however, focused primarily on where exactly the location of an Internet bet takes place. iMEGA's website noted that it seems that the judges were leaning towards the location of the Internet bet being at the player's computer itself, and not on the servers where the bet is received moments later.

iMEGA's chairman, Joe Brennan, Jr. said about the panel of judges that "They bore down on us, and they went in a direction that, given the vagueness challenge we were making, seemed odd." He continued that "Since the statute targets banks and credit card companies, it was unusual that there were no questions about them."

iMEGA has also tried to introduce evidence regarding the malfunctions that have already occurred because of the UIGEA, such as the blockage of online state lottery sales, that have only come to light after they initiated the court case, and so far have not had success in doing so. The US Department of Justice's attorneys are fighting hard to keep this information out of evidence.

The appellate court's decision could take some time to be made. It could take as little as a few weeks, and as long a number of months before the court rules on the iMEGA case against the UIGEA.

There is also the possibility that the court will choose not to make a decision until Barney Frank's bill has been voted on since if it passes, this will remove the online gambling ban and the UIGEA, which would make the case irrelevant and can then simply be dropped.