|In response to a motion filed in US Federal Court by the Interactive Media Entertainment and Gaming Association (IMEGA) calling into question the legality of the Unlawful Internet Gambling Enforcement Act (UIGEA), the US Government has submitted its latest argument asking that the case be thrown out.|
IMEGA began its legal action in June challenging UIGEA’s Constitutionality and requesting a temporary restraining order on its implementation. The online gambling industry lobby group claims that some of its members face ‘imminent financial ruin’ if the law is enforced.
Despite the fact that regulations have still not been framed by the Government for UIGEA, which seeks to disrupt financial transactions with online gambling companies, the legislation has caused widespread international damage to Internet betting companies.
Just before the weekend deadline, the United States Justice Department filed a brief in a Newark, New Jersey, Federal Court urging US District Judge Mary Cooper to reject the gambling industry motion to block the law before it goes into effect and now Cooper will hear oral arguments Wednesday and decide whether the issue should go to a full trial.
The US brief was largely unchanged from its previous submission and states that the trade group has no right to bring the case as its claim is based on ‘rank speculation’ and draws premature conclusions as the Federal Government has yet to issue regulations implementing the law, which Congress passed one year ago. The Treasury Department and the Federal Reserve are still drafting regulations to implement the law, having missed a July 20 deadline.