Lawyers representing the United States government met their deadline to file a brief outlining why the case brought against the Justice Department that is challenging the Unlawful Internet Gambling Enforcement Act (UIGEA) should be thrown out.
IMEGA, an organization made up of online gambling operators and companies that support them, filed a suit against the Department of Justice, the Federal Trade Commission, and the Federal Reserve that, if it wins, would render the UIGEA void.
The U.S. Department of Justice had until Friday, Sept. 21, to file a brief opposing iMEGA's request for a temporary restraining order against the UIGEA. Federal Judge Mary Cooper of the New Jersey District Court, in Trenton, will hear oral arguments concerning the case on Wednesday.
The UIGEA was signed into law Oct. 13, 2006. It's designed to stop U.S. citizens from patronizing online gambling and poker sites by targeting financial institutions that help move money between the sites and the players.
The law caused considerable financial damage to the companies associated with iMEGA, even though it hasn't yet been enforced (regulations are still being drafted by government agencies even though the deadline for them passed this summer). Several publicly traded sites left the U.S. market as soon as Congress passed the UIGEA.
This not only wiped billions from the bottom line of companies like PartyPoker, but also removed billions of dollars from the London Stock Exchange, where the stocks are traded.
IMEGA filed its case against the government in early June. The suit wants the UIGEA to be overturned and declared unconstitutional.
