iMEGA Versus UIGEA On July 6 

With the law suits in Kentucky and Minnesota taking center stage in the recent weeks, news on the mother of all online gambling law suits has been pushed into the background. But this will not be for long, because iMEGA’s suit challenging the constitutional validity of the UIGEA will be heard on July 6 at the Third Circuit Court of Appeals in Philadelphia. This law suit is more important than the others because it takes on a federal law that has national and even international implications.

iMEGA had filed the case challenging the UIGEA on grounds of void for vagueness and other reasons. The Department of Justice had countered by stating that iMEGA had no legal standing to represent the online gambling industry. In March 2008 Judge Mary L. Cooper granted iMEGA the standing to sue on behalf of the online gambling industry but turned down the case on merits. This led to iMEGA filing the appeal, which is listed as case number 08-1981 entitled “iMEGA v. Attorney-General USA, et al.”

Earlier this year iMEGA had asked for permission to file additional arguments based on credit card companies blocking online purchases of state owned lottery tickets. The Department of Justice had objected to this. However, Joe Brennan Jr., the Chairman of iMEGA, is confident of a good showing on July 6. He said, “The court is going to look at the entire case without technicalities and filing dates. They are going to solely decide it on the merits, not based on anything political or regarding procedure.” He added, “They are aware that their decision is going down in the history books."