Online Gambling and iMEGA Had Day in Court

The iMEGA group finally had its day in court Wednesday arguing that last years sneakily passed UIGEA law was unconstitutional and violates the rights of citizens in the U.S. to gamble in the privacy of their own homes.

The federal government had 270 days after the UIGEA passed to have a set of regulations in place; it has missed that deadline so the law has not been applied yet. The Internet Media Entertainment & Gaming Association sued the federal government this summer and wants the law declared unconstitutional. The U.S. Justice Department wants the lawsuit dismissed.

Now it is in the hands of U.S. District Court Judge Mary L. Cooper who heard arguments in the case in Trenton N.J. Wednesday. According to the Associated Press, she expects to have a ruling within 30 days.

The president of the industry association, Edward Leyden said that this law is limiting a $50-$60 billion a year industry and “It’s a large market now, and it’s growing.”

The U.S. federal government is adamant though that online gambling is illegal.

Leyden said the online gambling industry welcomes government regulations and even a tax on if necessary, and so do some in Congress like Rep. Barney Frank who is trying to introduce a bill that will regulate the industry.

“That’s exactly what we want — that kind of protection for our customers, kind of like a Securities and Exchange Commission for online gambling,” Leyden said. “Nobody in this industry wants to be tagged with the reputation of not being straight with the players.”

This is not the only court battle the U.S. is in, several countries, most notable Antigua and Barbuda are seeking compensation through the World Trade Organization. The WTO ruled in December against the U.S. saying that the ban on online gambling went against current trade policies and is illegal.

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