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iMEGA Loses Court Battle Over UIGEA
TRENTON --
In a much anticipated court ruling for the online casino industry, US federal judge Mary Cooper upheld the UIGEA and ruled against iMEGA in the biggest online gambling court case in years. As you may know, iMEGA (Interactive Media Entertainment and Gaming Association) filed a lawsuit against the Justice Department last year arguing the UIGEA violates the constitution and American freedoms.
The UIGEA (Unlawful Internet Gambling Enforcement Act) was passed in 2006 by Congress with the sole intention of cutting off funds to offshore sports betting sites and other illegal gambling sites. It is still unclear what the definition of an illegal gambling site is, especially since the law did nothing to clarify the term.
One thing is clear, the 1961 Wire Act is in full effect and completely enforceable. The act prohibits placing sports bets over the telephone or through any communications device. iMEGA was not arguing the constitutionality of the Wire Act, as they are against sports betting. The case was more about casino games such as slots, poker, blackjack, bingo, and roulette.
iMEGA's main point is if gambling is legal in 48 out of the 50 states, why is the government restricting Americans from playing online in the privacy of their own homes? In the US, almost every state has some form of lottery, horse racing, casino gambling, and fantasy sports leagues. All of which are currently exempt from the UIGEA.
iMEGA claims the law was unconstitutional on many fronts, including freedom of speech and invasion of privacy concerns. It wanted the court to declare that people should be allowed to gamble from the privacy of their own homes, especially if the activity is already legal in 48 states.
Despite the bad news for iMEGA, the online casino industry, and its players (including poker), the battle will continue. iMEGA's case was sufficient enough to warrant an appeal. The group has made it clear they will appeal this ruling sometime in the near future.
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