Online Gambling: Lawsuit Against Attorney General Alberto Gonzales

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Today, The Interactive Media Entertainment & Gaming Association (iMEGA) filed a brief (iMEGA in the NEWS: v. Alberto Gonzales, In Court) in order to expedite a response from the Department of Justice who has yet to respond to the original summons.

The original suit filed in early June in the U.S. District Court outlined how the Unlawful Internet Gambling Enforcement Act 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. The injunction, if granted, will prevent the government from enforcing the UIGEA and pave the way for Internet gambling to resume pending further order of the court.

The current law prevents U.S. credit-card companies and banks from processing payments to online gambling businesses. According to the Act, violators are subject to civil and/or criminal penalties including imprisonment.

"Two major benefits come immediately from U.S. recognition and regulation of Internet gaming; transparency and tax revenues,” said Edward Leyden, president of iMEGA. “As with the U.S. financial markets, transparency assures that broad access to relevant data and the balancing forces of a free market all operate to maintain fairness and prevent corruption. Similarly, in this age of a yawning federal "tax gap," U.S. taxation of Internet gaming transactions and companies could generate, more than $20 billion during the next several years--all while saving federal law enforcement dollars for the fight against terrorism and other dire issues.”