Online Poker Press

The Interactive Media Entertainment & Gaming Association (iMEGA) announced this week that the oral argument in the appeal of its lawsuit challenging the UIGEA will likely be held this April.

With iMEGA’s appeal and the government’s response having been filed, the United States Third Circuit Court of Appeals, which will consider the appeal, has asked both sides for dates in April on which they would be available for the oral argument.

“We’re very happy the Court is moving forward to schedule oral arguments,” said Joe Brennan Jr., iMEGA chairman. “We’re confident we have a strong suit, and it will be difficult for the Department of Justice to defend UIGEA, because it is so fatally flawed.”

The federal lawsuit, iMEGA v. Keisler, et al., was brought by iMEGA against the United States Department of Justice, the Federal Trade Commission and the Federal Reserve. It challenges the constitutionality of the UIGEA, which prohibits United States financial institutions from processing transactions from the United States to “unlawful” Internet gambling sites, including online poker sites and online casinos.

The named defendant in the case, Keisler, is the most recent attorney general for the United States since the lawsuit was brought. As the attorney general has changed since the original filing, which was brought against Alberto Gonzalez, so too has the name of the case changed. Should he be approved, Eric Holder will be the new attorney general, and the new named defendant in the suit.

According to the final rule issued late last year by the outgoing Bush administration, the determination of what is an unlawful Internet gambling site is left up to the financial institutions. These institutions have complained about the burden and cost of enforcement of the UIGEA rules, as well as about the lack of clear-cut standards for them to follow.

iMEGA’s lawsuit was dismissed by United States District Court Judge Mary Cooper without a ruling on the constitutional issues raised in the complaint. Judge Cooper did rule that iMEGA had associational standing to challenge the UIGEA on behalf of its members, and its appeal followed. On appeal, iMEGA is arguing that UIGEA should be “void for vagueness.”

The court provided a list of possible dates for the upcoming oral argument to Eric Bernstein, lead counsel for iMEGA, and to the U.S. Department of Justice, the lead defendant in the suit. The actual scheduling depends on the availability of both sides.

“We’re eager and ready to appear before the Third Circuit, because we feel we have the stronger hand to play on UIGEA,” Brennan told PokerListings.  “We are aware, though, that the transition in Washington D.C. may play a role in the timing of oral arguments, because of possible changes – perhaps in personnel – at the U.S. Department of Justice.”

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