Bush Government Asks Court To Dismiss Online Gaming Industry Challenge

2007-09-27

For the second time in a year the Bush administration has asked US District Judge Mary Cooper to throw out a legal challenge by the online gaming industry of its 2006 gambling law. Papers filed in Newarks Federal Court by the Justice Department claim that the online gambling industry has no right to bring their case, as their arguments are based on “rank speculation” and premature conclusions, seeing as how the law has yet to be implemented.

The law being challenged by the Interactive Media Entertainment and Gaming Association (iMega), which represents the online gaming industry, has met stiff resistance. The Unlawful Internet Gambling Enforcement Act makes it illegal for banks or other financial institutions to process transactions that are used to make online bets.

iMega has stated that if the law is to be enforced, many of its members would face “imminent financial ruin”. With estimated global revenue of $144US billion, the stakes are sky-high, according to an iMega representative, who questioned the constitutionality of the governments legislation.

“The action of gambling in private on the Internet is protected by First Amendment privacy concerns, “ according to the lawsuit, which also states that the governments actions violate privacy rights of online gamblers and website operators.

The act would also criminalize activity by companies that operate legally in their home countries, such as Antigua and Barbuda.

Judge Cooper is set to hear arguments on September 26th.

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