It was a roller coaster of a calendar year in 2008 for the Interactive Media Entertainment and Gaming Association, commonly known in the online poker industry as iMEGA. In 2009, the Washington, D.C.-based organization will turn just two years old. In a short time span, iMEGA has managed to find itself fighting on two major battlefields of the war for online poker and internet gambling in general. As it enters 2009, its lawsuit against the United States Government to declare the Unlawful Internet Gambling Enforcement Act (UIGEA) unconstitutional awaits the naming of a three judge Court of Appeals panel. It has also fought to protect the future of 141 internet gambling domain names in Kentucky.

Joe Brennan, Chairman of iMEGA, told PocketFives.com about its challenge against the constitutionality of the UIGEA: “We’re still waiting for the three judges to be named. They’ll review the briefs and then allow for oral arguments. The one thing about the appeals process is that it takes a lot longer than the trial process. There are far fewer appellate courts than trial courts.” The process of naming the three judge panel that will decide the fate of the UIGEA may actually take the entire 2009 calendar year.

In March at the trial court level, Judge Mary L. Cooper granted iMEGA standing to sue to declare the UIGEA unconstitutional. In the process, she disagreed with many of the organization’s key points. However, being granted standing was a substantial victory in itself. In its original case, which was heard by Judge Cooper, iMEGA alleged that the UIGEA was unconstitutional on six levels. First, it violated the “expressive association claim” in the First Amendment. Second, it infringed on privacy rights. Third, the law squashed free speech rights. Fourth, the UIGEA ran against the spirit of U.S. obligations to the World Trade Organization. Fifth, it violated an “ex post facto” claim and, finally, it runs contrary to the Tenth Amendment, which states that “The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.”

The passage of the UIGEA has also resulted in an international skirmish between the United States and the European Union. The Remote Gambling Association (RGA), whose membership includes online poker companies such as Party Gaming and Ladbrokes, has already filed a complaint with the European Commission, whose investigators arrived in the U.S. and met with trade officials in September. Separately, the U.S. has inked agreements with countries such as Antigua, giving up trade concessions because of violating international agreements.

As the internet continues growing, it will open up additional untapped sources of revenue for state and local governments. In Kentucky, protecting the Commonwealth’s horse racing industry and lottery was one of the primary reasons that Governor Steve Beshear ordered the seizure of 141 internet gambling domain names, which he considers to be unlawful competition. Brennan and iMEGA are among the major parties in that case, which is also at the Court of Appeals level. Brennan told PocketFives.com, “When everyone is flushed with cash, it’s one thing. Now that everyone is cash-starved, revenues are down severely. What’s the greatest untapped vein in commerce? It’s the internet. Think of the internet as a giant oil field.” Both the Kentucky Lottery and Churchill Downs racetrack have online gambling arms.

In December, a three judge Court of Appeals panel in Kentucky heard the case. In it, iMEGA was flanked by the Interactive Gaming Council (IGC) as well as a lawyer who represents several of the sites in jeopardy. Brennan commented, “We have a concern because several of our members are on that list of domain names. Any municipality could make a claim to say that because a site has a presence, they’re liable.” On Friday, December 12th, the Kentucky Court of Appeals heard lawyers from both sides argue and is now the process of deliberating. When a verdict will be reached is anyone’s guess.

Finally, the end of the calendar year saw a legal precedent set, as Party Gaming Co-Founder Anurag Dikshit admitted to violating the Wire Act in a New York court room. He also will cough up $300 million and may spend up to two years in prison. The move was meant, in part, to help clear the air for Party Gaming legally, as Dikshit remains a 27% stakeholder in the parent company of PartyPoker. Although Brennan and iMEGA have not officially commented on the issue one way or the other, he revealed, “He’s created a troubling precedent in that he’s pled guilty to a crime that there is no indictment for. He’s painted online poker into a corner at a time when there’s a feeling that there may be an opportunity with the new Congress to have some sort of solution that would result in the legalization and regulation of online poker.”

Read about iMEGA to learn more. A special thanks to Brennan for taking time out of his holiday travels to talk with us.