Court Upholds US Ban on Online Gambling

A US appeals court has upheld the nationwide ban on online gambling, following a legal appeal from a New Jersey-based gaming company.

The Interactive Media Entertainment & Gaming Associated sued the Justice Department, Federal Reserve and Federal Trade Commission, based on its claim that anti-gambling laws are too vague, unconstitutional and infringed on individuals' rights to privacy.

However, the US Court of Appeals for the Third Circuit rejected the appeal last Tuesday, upholding the 2006 Unlawful Internet Gambling Enforcement Act, which effectively banned Internet gambling by outlawing the transfer of funds from financial institutions to gambling websites.

Interactive Media chairman Joe Brennan Jr. said the company was "disappointed that the court didn't overturn the law," but added that the verdict gave the company something to look forward to, after indicated that the issue was one of state - rather than federal - jurisdiction.

He added that there only six states where online gambling would be in violation of state laws, leaving, in his words, 44 states that present "an opportunity for Internet gaming to become regulated and normalized."

Hearings on pro-gambling legislation introduced by US Congressman Barney Frank (D - MA) with the aim of overturning the UIGEA are due to be held Washington, DC, in September.