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In late 2006 the U.S. government passed the Unlawful Internet Gambling Enforcement Act, effectively making it illegal for American citizens to play at online casinos. This plunged the online gaming industry into turmoil, cutting off a massive amount of customers from online casino sites.

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The Interactive Media, Entertainment, and Gaming Association (iMEGA) are a trade group formed to represent the interest of online casinos. They have been engaged in a protracted court battle against the U.S. Department of Justice to try and have the UIGEA removed from law.

In the latest round of the case, the Third Circuit Court of Appeals in Philadelphia heard oral arguments from both sides. iMEGA president Joe Brennan was surprised at how knowledgeable the three-judge panel were on casino issues. They asked testing questions of both sides, concentrating particularly on the location of the bet. There is some controversy about whether an online casino bet is placed in the location of the bettor, the location of the bank, or the location of the online casino.

Ultimately, iMEGA believe that the UIGEA should be ruled void for vagueness. The UIGEA makes it illegal for financial institutions to make transfers to companies involved in “illegal online gambling.” However, this term is not defined in any way, and so iMEGA contest that the whole law is therefore invalid. The court should take around 90 days to reach a decision on this online casino case.

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