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Taking on the Giant

The United States government is one of the biggest opponents to legalized online casino gambling. And what’s ironic about the situation is that the current administration is likely much more lenient with the internet gambling industry, but Bush-era legislation, the UIGEA, blocks offshore online casinos and then heavily penalizes those sites that have violated the UIGEA. The controversy surrounding the US’ policies on internet gambling are seemingly never-ending; everyone has a problem with the UIGEA from foreign countries to domestic organizations. iMEGA, the Interactive Media & Gaming Association, contested the UIGEA and has taken the case up through the court system.

The lower courts in the US have essentially sided with the US Attorney general in the case, the defense. But, importantly, at every step of the way the judges have noted that iMEGA has a valid case in regard to the online casino gambling ban and that the organization could take the case to the higher courts for a more thorough consideration. The US 3rd Circuit Court of Appeals sent notification to both parties in the case indicating that a trial hearing will take place on July 6, 2009 to consider the case – there has not been a decision yet by the Court on whether or not each side will be permitted to give oral arguments.

iMEGA’s lawyers feel that there is a very real possibility that the courts will decide favorably for iMEGA – the UIGEA unfairly restricts transactions in its real-world application that block legal domestic transactions in addition to the illegal foreign online casino gambling transactions because of flaws in the regulations, implementation, and enforcement of the laws.