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Repeal UIGEA

September 10,

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iMEGA Case to Repeal UIGEA Gets Extension Until Late September

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Although an extension in the case iMEGA has brought against the US Department of Justice in order to repeal the UIGEA will make those paying close attention to the industry a little bit more anxious, the extension of the case to September 26, granted today and agreed upon by both iMEGA and the defense, is actually seen as a good sign by the iMEGA team.

The extension gives the iMEGA team more time to prepare their oral arguments.

The better sign for the iMEGA team is that the judge, one Mary L. Cooper, has agreed to hear oral arguments on iMEGA’s petition for a temporary restraining order (TRO) against the implementation of the Unlawful Internet Gambling Enforcement Act (UIGEA), as well as the Government’s routine motion for dismissal.

Given the court’s willingness to hear oral arguments, iMEGA believes that a dismissal of the case is unlikely.

The original court date for this case was set for August 17th, but the day before that date the defense asked for an extension, which they were granted until the 4th of September.

Analysts assumed that on the September 4th court date the defense would ask for a dismissal and believed there would be a good chance that their request would be granted.

However, now that the judge has agreed to hear the oral arguments all assumptions are off.

iMEGA feels that the UIGEA, if allowed to stand, would create a bad precedent that would chill innovation and the growth of e-commerce by US firms, and permit the flow of jobs and Internet firms out of the US to avoid stifling laws.

In the case of UIGEA, iMEGA believes that the embrace of readily-available, commercial technology can help remedy the social ills (underage and compulsive gambling, as well as fraud) far better than this law, which – ironically – would likely exacerbate problem gambling.

The points iMEGA feel most strongly about can be backed up by testimony given to the House Financial Services Committee earlier in the year.

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