US Non-Proft Challenges UIGEA

The Interactive Media Entertainment & Gaming Association (iMEGA) announced that it will seek judgment restraining the United States from enforcing the U.S. Unlawful Internet Gambling Enforcement Act (UIGEA).

The suit, filed Tuesday in U.S. District Court, outlines how, in iMEGA's view, 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."

In a prepared statement, the association said that the injunction, if granted, will prevent the U.S. government from enforcing the UIGEA; moreover, it said, the suit will pave the way for I-gaming to resume pending further order of the court.

"The purpose of the [UIGEA] 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 iMEGA attorney Eric Bernstein.

iMEGA said that, among other arguments, it will use the recent ruling of the World Trade Organization (WTO) to corroborate its case. In late March, a WTO compliance panel found the United States in contempt with treaty obligations regarding Internet gambling.

Although the ruling favored the Caribbean nation of Antigua and Barbuda (Antigua), representatives from the U.S. Trade Representative's Office have since clarified the U.S. position in relation to the ruling, saying it will modify its treaty obligations to eliminate Internet gambling.

"Two major benefits come immediately from U.S. recognition and regulation of Internet gaming: transparency and tax revenues," said Edward Leyden, President, iMEGA. "As with the U.S. financial markets, transparency assures the broad access to relevant data and the balancing forces of a free market all operate to maintain fairness and prevent corruption."

While its regulations have yet to be prescribed, the UIGEA, enacted October 2006, will prevent U.S. credit-card companies and banks from processing payments to I-gaming businesses.

IGN will follow with in-depth coverage of the effort. More on this to come.

Click here to view a copy of the suit.