UIGEA Legality Hearing set for September 4- Online Poker Players Watchful

A Federal Judge in the state of New Jersey has assigned a September 4 hearing date for the lawsuit filed June 5 by the Interactive Media Entertainment & Gaming Association (iMEGA) against U.S. Attorney General Alberto Gonzales that seeks to prevent implementation of the Unlawful Internet Gambling Enforcement Act (UIGEA).

The date was revealed in a Gambling911 article published today. Judge Mary L. Cooper of the US District Court in Trenton, NJ will preside over the hearing.

Last October, the UIGEA made it illegal for financial institutions to handle transactions between U.S. residents and online gambling businesses, effectively blocking most US residents from playing poker online.

"The purpose of the Unlawful Internet Gambling Enforcement Act is to prevent Americans from engaging in their fundamental rights to conduct their lives in the manner they wish to live it - to be free from the government imposing public morality in the privacy of one's home", said Eric M. Bernstein, Esq., attorney for iMEGA.

The lawsuit filings request a Temporary Restraining Order to stop US banks from having to enforce whatever policies have or may be created by the Treasury and the Attorney General until the courts can fully hear all the arguments against the UIGEA.

In addition to the US Department of Justice (DoJ), it also names the Federal Trade Commission (FTC) and the Federal Reserve in the case.

CAUSING PROBLEMS FOR ENTIRE I-COMMERCE

The suit outlines how the UIGEA infringes upon basic constitutional rights and sets a dangerous precedent for I-commerce by criminalizing the transmission of money if the end result is illegal in some unspecified place.

"We think the law infringes on the First Amendment and Tenth Amendment rights of our members," Edward Leyden, iMEGA's president, told Red Herring last month. "And we also believe the government has exceeded its authority in its WTO dispute with Antigua and that too has harmed our clients." [click here for article on WTO case]

"This law will cause problems for the entire Internet," Joe Brennan, Jr., iMEGA founder and a former executive of AOL told delegates at the Global Interactive Gaming Summit and Expo in Montreal last month.

He went on to explain that his organization was backed by a small group of wealthy individuals with strong moral convictions, who were concerned at the dangers that a ban on Internet financial flows such as that used in the UIGEA could imply.

"We are a 501 (c) 6 trade organization. This gives the association an opportunity to have standing to lobby on behalf of our members and to maintain their privacy."

iMEGA HAS PLANS BEYOND ONLINE GAMBLING INDUSTRY

Brennan revealed that iMEGA has plans beyond the online gambling industry, and he stressed that his organization was not a front for any gambling group or groups. The organization is concerned at the erosion of constitutional liberties and fears that over-zealous government intervention could extend to other areas of American society. He pointed to other major Internet entities such as Google and YouTube as potential targets should the UIGEA concept, regulations and powers become more widely used by the authorities.

iMEGA is concerned that if the UIGEA is allowed to continue, with its potential for absolute enforcement, the United States will fall far behind other major nations as far as online development is concerned, Brennan emphasized.

"We understand there are problems that must be recognized such as underage and problem gambling, but there are ways to get rid of this instead of relying on draconian laws that will only exacerbate problems, especially when it comes to fraud and addiction," he claimed.

WILL UIGEA BE ENFORCED BEFORE SEPTEMBER 4?

"The UIGEA can still be enforced prior to the September 4 date," Brennan relayed in a brief conversation with Gambling911.com Wednesday evening. "But we feel confident that the judge will prevent that from happening."

The honorable Judge Cooper will review the briefs submitted by iMEGA and the defendants (US DoJ, FTC and Federal Reserve) to determine if she will grant iMEGA's request for a temporary restraining order (TRO) preventing the enforcement of UIGEA.

Judge Cooper can decide whether she will rule on the TRO request based on the submitted briefs, or can order a separate hearing to hear oral arguments and testimony before making a ruling.

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