U.S. JUSTICE DEPARTMENT REQUESTS MORE TIME IN IMEGA CASE

17 August 2007

Delay expected to September 4 hearing date for iMEGA

Jacqueline Coleman Snead, a U.S. Justice Department legal eagle from Washington DC will be defending the government in the iMEGA case....but not for a further two weeks. Originally set down for hearing in New Jersey by a federal judge for September 4, the government has requested a two weeks stay, presumably to prepare its response.

Scheduled for hearing in the US Circuit Court (3rd District - New Jersey) the case was brought by the Interactive Media Entertainment & Gaming Association (iMEGA) and attacks the Unlawful Internet Gambling Enforcement Act, which it claims infringes upon basic constitutional rights and sets a dangerous precedent for I-commerce by criminalising the transmission of money where the end activity is illegal in an unspecified location.

If the court rules favourably on the litigation, iMEGA expects it to impact the enforcement of the UIGEA, which seeks to disrupt financial transactions with online gambling sites, and for which regulations still remain unpublished despite the passage of more than 270 days since the law's promulgation.

iMEGA spokesmen and lawyers have consistently claimed that the organisation's interest in challenging the UIGEA stems from concerns about the impact on present and future Constitutional freedoms, and not online gambling-specific issues.

iMEGA's original suit filed in a New Jersey court (see previous InfoPowa reports) by spokesman Joe Brennan and lawyers attacked the Unlawful Internet Gambling Enforcement Act, which it claims infringes upon basic constitutional rights and sets a dangerous precedent.

Supporting regulation rather than prohibitionary moves like UIGEA, iMEGA President Edward Leyden commented: "Two major benefits come immediately from U.S. recognition and regulation of Internet gaming; transparency and tax revenues.

“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.”

Online Casino News courtesy of InfoPowa