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Essential Dismissal of Online Casinos Case

The Interactive Media Entertainment & Gaming Association (iMEGA) released a statement covering the Association’s reactions to the recent court ruling concerning the Associations case against the U.S. government. iMEGA filed a case last year against the U.S. government requesting that the 2006 online casinos gambling ban be deemed unconstitutional and thus overruled. iMEGA represents a number online casinos and e-gaming companies that feel that the Unlawful Internet Gambling Enforcement Act (UIGEA) is both ineffective and violates Free Speech rights.

The case really centers on calling into question the entirety of the UIGEA and the Act’s attempts to block online casinos gambling transactions through financial and banking institutions. The United States Department of Justice was then put in the defensive position in this case, reacting to accusations from iMEGA. The DoJ took a strong position though, claiming that iMEGA had no grounds to even file a lawsuit on this case considering that the online casinos gambling ban had no regulations filed at this point and that the Act was validly passed through Congress and therefore beyond the scope of a court ruling.

The presiding judge in the case, Judge Mary L. Cooper of New Jersey, took plenty of time to rule on the case, several months longer than most in the online casinos industry anticipated, but considering how intense the international debate is over the UIGEA, the case warranted careful deliberation. In the end, the Department of Justice essentially won the case as Judge Cooper’s ruling stated that “it is not the court's role to pass on the wisdom of a Congressional act or speculate as to its effectiveness." And according to Cooper, that is precisely what iMEGA’s case was about. Judge Cooper noted that iMEGA’s “claims express a fundamental disagreement with Congress's judgment that Internet gambling should be controlled legislatively.”

But Judge Coopers ruling does not mean that iMEGA is without further recourse, because the Association can still bring an appeal up that focuses on the constitutionality of the online casinos gambling ban.