iMEGA Set to File Appeal in Internet Gambling Lawsuit

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Featured, Poker Legislation

iMEGA Set to File Appeal in Internet Gambling Lawsuit

By Dan Cypra for POKER NEWS DAILY | Posted on July 23, 2008

You may have never heard of the Interactive Media Entertainment and Gaming Association. It’s called iMEGA for short and it’s leading the charge to declare the Unlawful Internet Gambling Enforcement Act unconstitutional. How, you ask, could the 2006 law be overturned? iMEGA is on the verge of filing its claim in the Third Circuit Court of Appeals in the Northeast United States, charging that the UIGEA violates First Amendment rights. A judge recently granted the organization standing to sue. PokerNewsDaily recently spoke with iMEGA Executive Director Ed Leyden to learn more about the Washington-based organization and the future of its lawsuit.

Leyden describes what iMEGA’s goals are in its pursuit of undoing the UIGEA: “We are the trade association for the online gaming industry and represent companies that are participants in it. Our mission has been to promote the interests of the online industry. We think that, because the internet can play such a role in cementing freedoms and breaking down barriers, it supports society in general.” iMEGA was founded in 2007.

Leyden and company do not have an official stance on internet gambling itself. Instead, Leyden explains why the organization is currently focused on the issue: “We’re involved because the online gambling industry has been the target. We have a government operation in Washington, D.C. and lobby on Capitol Hill.” iMEGA filed its case in New Jersey on June 5, 2007. On March 6, 2008, it was granted standing, although the judge in the case disagreed with many of iMEGA’s arguments. Leyden comments on why being granted standing was so important: “The court determined that iMEGA represented the interests of the industry and was fully entitled to try the industry in any court of the United States.”

As you may know, Barney Frank and Ron Paul’s HR 5767 was overpowered in the House Financial Services Committee. The defeat came in the midst of iMEGA formulating its final arguments in preparation for the Third Circuit Court of Appeals. I asked Leyden if the fall of HR 5767 changed the organization’s arguments: “It doesn’t change what arguments we’ll make. However, the defeat of HR 5767 should focus people’s minds on how steep of a hill we have to climb.”

A three judge panel will decide iMEGA’s fate in a court of law. While iMEGA’s lawyers will battle it out in a courtroom, Jim McDermott will be fighting for the passage of his new bill, HR 6501, in Congress. Leyden talks about McDermott’s Investing in Our Human Resources Act: “It’s helpful that PricewaterhouseCoopers did a study on internet gambling revenue. We’re gratified that Congress, through its own accounting arm, will see what the benefits are.” McDermott is a member of the House Ways and Means Committee, which formulates legislation that concerns tax matters in the United States. This is the third bill that the Washington State Congressman has introduced concerning internet gambling. PWC’s study concluded that up to $40 billion over the next ten years could be extracted from the internet gambling industry by taxing it. That’s a significant sum of money that could help fun a bundle of vital social programs.

Leyden sums up iMEGA’s arguments, which it will file by the end of August: “You should have the same rights and responsibilities online as you do in the real world. Recognition of that right by a court and the Congress itself would be the end of the effects of the UIGEA.” We’ll keep you up to date on the latest news from iMEGA on PokerNewsDaily.

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