Internet Gambling Decision

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(Washington, DC – March 6, 2008) – The Interactive Media Entertainment & Gaming Association (iMEGA) today applauded the decision by Judge Mary L. Cooper, of the U.S. District Court for the District of New Jersey, granting iMEGA the standing to pursue a challenge of the Unlawful Internet Gambling Enforcement Act (UIGEA). This is a significant victory for iMEGA in the case of iMEGA v. Gonzales, et al.

“Granting iMEGA standing is a major victory any way you look at it,” said Eric M. Bernstein, Esq., attorney for iMEGA. “Judge Cooper’s ruling holds that, even with the passage of UIGEA, online gambling is only illegal in states where a statute specifically says it is.”

“iMEGA is very pleased that the Court recognized our standing and the weaknesses in UIGEA” said Joe Brennan Jr., the chairman of iMEGA. “Judge Cooper found that banks, credit card companies and other payment system instruments are exempt from criminal sanctions under UIGEA, significantly undercutting UIGEA’s enforcement mechanism. Her ruling echoes the growing consensus of opinion that UIGEA is a fundamentally flawed statute.”

“We believe Judge Cooper missed the opportunity to affirm Americans’ online privacy rights and we plan to appeal to the Third Circuit Court of Appeals,” continued Bernstein. “However, her honor’s decision significantly undercuts the federal government’s argument that UIGEA is a well-drafted, effective and enforceable law.”

UIGEA was passed in the waning minutes of the 109th Congress with very little input from most Members of Congress. iMEGA filed suit to challenge UIGEA on June 5, 2007 and oral arguments were heard in the case on September 26, 2007. A decision has been pending since that date. In the interim, the Federal Reserve Board of Governors and the Department of the Treasury have issued proposed regulations to implement UIGEA and iMEGA and numerous other organizations, such as the American Bankers Association, have filed comments objecting to them.

“iMEGA supports the use of effective, existing technologies to protect children and problem gamblers,” continued Brennan. “Although UIGEA is purportedly designed to limit illegal Internet gambling, it falls woefully short of having the ability to accomplish that purpose and fails the American people on a number of fronts. If promulgated, the proposed regulations would stifle online innovation and commerce; inadequately protect children by failing to ensure adequate safeguards; and have a chilling effect on the digital civil rights of all Americans.”

The official name of the case is Interactive Media Entertainment & Gaming Association vs. Alberto Gonzales, et al.
 

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