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U.S. District Court Hears Challenge to Online Gambling Restrictions
The Internet Media Entertainment & Gaming Association, an association of online gambling enterprises, is seeking judgment restraining the United States from enforcing the Unlawful Internet Gambling Enforcement Act, which was passed by the U.S. Congress in 2006, in a New Jersey Court in the matter of iMEGA v. Gonzales, et al.
The Unlawful Internet Gambling Enforcement Act seeks to prohibit U.S. credit card companies and banks from processing payments to online gambling businesses.
The Internet Media Entertainment & Gaming Association claims that the Act infringes upon basic constitutional rights, and that filtering technology already exists to ensure children and compulsive gamblers cannot access offshore betting sites.
The lawsuit also seeks to stop enforcement of the Act based on a recent ruling of the World Trade Organization. A compliance panel issued a report suggesting the United States failed to comply with a dispute settlement body's earlier recommendations and rulings, while unfairly restricting online casinos. The Islands of Antigua and Barbuda sought the ruling from the WTO, on the basis that the U.S. online gambling ban hurt its economy.
The Federal Reserve Board of Governors and the Department of Treasury have also recently jointly promulgated regulations under the Act.
For a copy of the Regulations, visit:
http://www.treas.gov/press/releases/reports/noticeofproposedrule.pdf