UIGEA upheld by federal appeals court

2 September 2009

PHILADELPHIA, Pennsylvania -- As reported by Bloomberg: "A 2006 federal law that prohibits gambling over the Internet was upheld by a U.S. appeals court after a challenge from a New Jersey-based nonprofit corporation that promotes electronic betting.

"In a decision handed down yesterday, three judges in the U.S. Court of Appeals in Philadelphia said the Unlawful Internet Gambling Enforcement Act isn't unconstitutionally vague and doesn't violate gamblers' privacy rights.

"The law 'clearly provides a person of ordinary intelligence with adequate notice of the conduct that it prohibits,' the judges wrote.

"Interactive Media Entertainment & Gaming Association Inc. sued the U.S. Attorney General, Federal Trade Commission and Federal Reserve System in 2007 in an effort to void the law. The Act bars placing, receiving or otherwise knowingly transmitting a bet or wager using the Internet. The law makes it a crime for banks or other institutions to process financial transactions used to place illegal bets online. In March 2008, U.S. District Judge Mary L. Cooper dismissed the association's challenge to the law..."