Now that the industry has had a chance to digest the meaning of the 121 page document that outlines the regulations of the Unlawful Internet Gambling Enforcement Act (UIGEA), many organizations have begun weighing in. One such group is the Interactive Media Entertainment and Gaming Association (iMEGA). Fighting to declare the UIGEA unconstitutional in the Third Circuit Court of Appeals as well as working to overturn the seizure order of Governor Steve Beshear in the State of Kentucky, iMEGA has had its hands full with legal battles. PocketFives.com sat down with iMEGA Chairman Joe Brennan to talk about the regulations of the UIGEA as well as provide an update on the organization’s appeal.
The regulations of the UIGEA do little to define what is unlawful and what is permissible under the UIGEA. The regulations explain, “The Act states that none of its provisions shall be construed as altering, limiting, or extending any Federal or State law or Tribal-State compact prohibiting, permitting, or regulating gambling within the United States.” Brennan noted, “All along, not only has iMEGA argued in its suit that the law should be void for vagueness, but you also have groups like the American Banking Association saying that its members will find it impossible to enforce. You even have in Congressional testimony the authors of the regulations saying that it would be extremely difficult for banks to enforce it because of a lack of a definition.”
In September, the poker world got word that HR 6870, the Payments System Protection Act, passed the House Financial Services Committee by a 30-19 vote. The bill, which was introduced by Committee Chairman Barney Frank, called for the development of a list of what activities were allowed under the UIGEA. Sports leagues came out against HR 6870 and then a link between the National Football League and White House special assistant William Wichterman was also exposed. Many in the industry speculated that Wichterman may have been the impetus behind the UIGEA regulations being ushered through as part of the Bush Administration’s midnight rule making.
Brennan added, “You’ve had attempts by Frank and others to introduce legislation to compel the Department of the Treasury to provide a definition of 'unlawful internet gambling,' although the Executive Branch can’t write laws. It is Congress’ job to provide that definition.” iMEGA and groups like the Poker Players Alliance (PPA) are hoping that President-elect Barack Obama will try to undo the UIGEA rules and other last-minute activities by the outgoing Bush Administration. The UIGEA regulations go into effect on January 19th. Compliance is required by December 1st of next year.
In terms of what he expects out of Obama in January, Brennan talked about his thoughts on the new President utilizing the Congressional Review Act of 1996 to overturn midnight rules: “Obama is a very practical politician. His message during the first part of his administration will be turning around the economy. I do not see Obama early on in his administration committing the political capital to take a big lead on internet gambling. Absent the law being knocked out, it’s going to be a tough sell to the Democratic Caucus to get in front of internet gambling after making the gains that the party did in 2008.” Others would argue that because internet gambling can provide much-needed revenue, it may ultimately be addressed.
In its Congressional Guide, the PPA ranked Congressmen based on their perceived friendliness to online poker. It recently calculated the results of the election, noting that of the 54 candidates that its political action committee (the PokerPAC) endorsed, 46 were elected to Congress during the 2008 general elections. In addition, 40 of the most poorly-rated Congressmen will not be returning to Capitol Hill when the new legislative body convenes in January.
iMEGA is also suing to declare the UIGEA unconstitutional. A lower court judge gave the organization standing to sue. Arguments made included that the UIGEA should be “void for vagueness” and that it oversteps the boundaries of privacy laws. Brennan commented in a press release posted on iMEGA’s website, “We have a powerful argument that the government will find very hard to dispute. The sooner we can move this fatally flawed law off the books, the sooner we can turn our attention to working on technology solutions that will provide for a regulated online gaming industry in the U.S.”
Read more about the Interactive Media Entertainment and Gaming Association by visiting its website.
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