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Good News: Court Appears to Support Constitutionality of Internet Gambling Law

Don’t bet on Internet gambling becoming legal anytime soon. The Interactive Media Entertainment & Gaming Association (iMEGA) challenged the Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA) in an oral argument on June 7, 2009, in the 3rd Circuit Court of Appeals. The hearing did not bode well for the online gambling interests, who are pushing to legalize Internet gambling in the U.S.

Prior to the hearing, online gambling’s iMEGA chairman, Joe Brennan Jr., smugly remarked, “This law will finally have to stand on it’s own two feet in court, free from politics and all other outside influences. We feel very confident that when the judges take a look at the law, they will see just how defective it is, and they will overturn it.” That didn’t happen. And, ironically, it’s the “other outside influences,” like foreign Internet gambling interests, who are pushing U.S. politicians to overturn UIGEA.

The two iMEGA lawyers attempting to overturn UIGEA met sober opposition with their tired arguments. They claimed that UIGEA is too ambiguous and it violates gamblers’ First Amendment rights. Their arguments were aptly rejected by the three judges who were not impressed.

The 3rd Circuit judges discarded the supposed ambiguity in UIGEA. “I’m struggling with what’s vague …” said Judge Kent, “[gamblers] could have a beef [with state laws] … that doesn’t mean this statute is vague [UIGEA].”

None was impressed with iMEGA’s arguments claiming that UIGEA violates gamblers’ First Amendment rights. Judge Ambro asked one of the iMEGA attorneys, “Are you asserting that you have a privacy right that trumps the police powers of the state?”

Overall, the judges seemed to unanimously uphold UIGEA and the face of Internet gambling’s oral arguments. More to come as Rep. Frank attempts to overturn UIGEA with his bill to legalize Internet gambling (H.R. 2267), but the House Financial Committee has more important, pressing concerns with the teetering U.S. economy.

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Category: Federal Issues, Gambling

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