iMEGA CONTESTS U.S. GOVERNMENT MOTION FOR DISMISSAL

14 September 2007

Legal team refutes claims that it has no legal standing and has not been prosecuted


The legal 'tennis match' between the Interactive Media Entertainment & Gaming Association [iMEGA] and US Justice authorities continues this week (see previous InfoPowa reports) with news that iMEGA has responded to the US attempt to have its case dismissed with a strong legal argument refuting government claims that it has no standing and has not seen members prosecuted.

The US government lawyers will now have to respond by 21 September to the latest exchange in the back-and-forth legal arguments surrounding the issue.

Although the parties mutually agreed to a hearing on September 26th in a New Jersey federal court (see previous InfoPowa reports) the U.S. government subsequently filed a cross-motion for dismissal, claiming that iMEGA lacks standing and its case lacks substance. The government also made the extraordinary claim that its failure to meet Congressional deadlines for the introduction of the supporting regulations for the UIGEA meant that the rules and regulations for the new law have not yet been created, therefore rendering the law "unripe" for this kind of challenge.

In the latest development, iMEGA lawyers argued against any dismissal, claiming that the organisation had provided ample precedent for both its legal standing as a trade association acting on the behalf of its members, and for the potential jeopardy of prosecution which the new law holds for iMEGA members. iMEGA lawyers contended that it is not necessary to wait for one of its members to be prosecuted before the law may be scrutinised by the courts.

iMEGA has asked for a temporary restraining order against the implementation of the Unlawful Internet Gambling Enforcement Act, which seeks to disrupt financial transactions with online gambling companies, but which remains unsupported by regulations despite the passage of more than 270 days from its promulgation.

iMEGA's suit lists several justifications for its application, including the inappropriate restriction of a form of 'consensual private conduct;' an overbroad criminalisation of financial transactions relating to online gambling and an inconsistent and therefore unconstitutional regulation of states' rights matters.

The body claims the right to litigate because it was formed to represent the interests of members, which are businesses or individuals involved in Internet interactive media, entertainment and gaming, including Internet gambling.

iMEGA remains confident that it has a strong case. President Edward Leyden said earlier that the organisation's own case is being continually improved. "As with any lawsuit," commented Leyden, "ours is an evolving being that may well be amended to take into account unfolding events and legal arguments, including naming additional defendants as necessary and appropriate."

Online Casino News courtesy of InfoPowa