iMEGA the Only Game in Town Right Now for Internet Gambling Freedom

"iMEGA is the only game in town and hopefully other (Internet gambling) companies will jump on board," said Eric M. Bernstein, whose law firm is representing iMEGA's challenge against Attorney General Alberto Gonzales and the Federal Reserve Bank.

Gambling911.com had an opportunity to sit down with Mr. Bernstein to discuss iMEGA's challenge in a New Jersey court against the Unlawful Internet Gambling Enforcement Act (UIGEA). 

On September 4 a hearing is set whereby Judge Mary J. Cooper will decide whether or not to grant a temporary restraining order, which in essence would prevent the US Federal Government from enforcing the UIGEA.

"If the (Internet gambling) industry wants to stay in business, it needs to fight in Court."

Allowing the process of enforcing the UIGEA to move forward will all but guarantee online gambling companies won't be able to conduct business with US citizens. 

Some good news: The US government is yet to respond to iMEGA's complaint.

"They have a period to do so before September 4th and we believe they will."

Bernstein points out that if for some reason the US government does not respond, it is a strong likelihood that Judge Cooper will make a decision solely on what has been filed.  Such a scenario would more than likely favor iMEGA and the industry as a whole.  Basically, there wouldn't be any argument against the temporary restraining order at that point.

While the banks can institute provisions before the September 4 date, it is Bernstein's belief that the banks are waiting for the Federal Reserve to tell them what to do.  Apparently, no instructions have been given to date.

Some questions have arisen as to why iMEGA elected to name only three defendants (parties): Alberto Gonzales, the Federal Reserve and the Federal Trade Commission.

"Alberto Gonzales is the Chief Law Enforcement Officer, while the Federal Reserve and FTC are the two bodies that have been empowered to draft the act (provisions)."

And why the state of New Jersey?

"We believed it was the best possible state based on past gambling-related decisions.  It is a favorable jurisdiction."

As far as the UIGEA's success up to this point, Bernstein does not understand why any online gambling company or money processing firm chose to abandon the US market up to this point since the law cannot be enforceable without set regulations. 

"The US government has been successful in terms of fear," Bernstein said.

As for what needs to be done now. 

"Everybody (in the Internet gambling industry) keeps waiting for some miracle to happen," Bernstein points out.  "Even a legislative measure to overturn the current law will take time.  None of the bills we are hearing about (i.e. Barney Frank's proposal to repeal the UIGEA) have gotten out of Committee.  There is a clear desire to do something but this will take a significant amount of time.  The bills have to get on the floor than they have to avoid filibusters."

Bernstein says that there are still a lot of people in the industry sitting on the sidelines.

"It's time to get more involved."

Don't forget to read our interview with 2008 Presidential candidate Ron Paul who discusses his co-sponsorship of Barney Frank's legislation to repeal the UIGEA

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Christopher Costigan, Gambling911.com

Originally published August 5, 2007 11:15 pm ET