iMEGA Hopeful to be Granted TRO for Internet Gambling Dispute

Joe Brennan Jr., founder of iMEGA.org, expressed a slight optimism that September 4 will result in a temporary restraining order related to the Unlawful Internet Gambling and Enforcement Act policy provisions.  A deadline has already come and gone whereby banks were asked to provide details on how they will go about stopping online gambling transactions.  (pictured: Edward Leydon, President of iMEGA.org)

Lawmakers required banking institutions to come up with provisions by mid July in conjunction with the passage of the UIGEA, which essentially holds banks accountable for policing Internet gambling activity.  The banking industry considers the new legislation an "unfunded mandate", insisting they will need to spend billions to monitor such transactions. 

Online gambling operators on the sports betting side specifically have been feverishly working to get poker and Internet casinos more involved with  iMEGA, which is the only organization challenging the UIGEA in a court of law. 

"iMEGA is taking a great risk but without them we are going to have to just close shop," reiterated one operator whose online gambling business is considered among the biggest in the Caribbean. 

Brennan considered an article that appeared on the Gambling911.com website Tuesday as "dead on".  Many in the online gambling community expressed concern over some details.  The piece highlighted the need for operators and gamblers alike to support iMEGA's efforts more strongly.

"I do hope that it (that article) does wake up the more cynical and/or ambivalent parties in the industry to get behind this effort," Brennan commented Tuesday evening.  "Right now, we're holding things together financially, but only just. We're hoping a positive result in September (a TRO, etc.) will encourage more parties to jump on the bandwagon."

A Federal Judge in the state of New Jersey has assigned a hearing date of September 4 for its lawsuit, which lists Attorney General Alberto Gonzales among the co-defendants. 

Thus far, the prevailing attitude in regard to iMEGA seems to be one of "quiet skepticism" though few are calling a legitimate challenge in the US Supreme Court "frivolous".

Popular special contributor to the Gambling911.com site, Jennifer Reynolds, has been one of the few individuals to engage iMEGA. 

"Any increase in the power of the government decreases the options and freedom of the individual," Reynolds stated in regard to what she perceived as iMEGA's agenda. 

Brennan defended his organization.

"It was disappointing to read, on the same day iMEGA decried the FTC's lack of action to ensure Net Neutrality - and to protect individuals and Web publishers from potentially harmful and non-competitve practices by broadband Internet service providers (ISPs) - Ms. Jennifer Reynolds' guest column on Gambling 911 (See: iMEGA: Really a Friend to the Internet and Online Gambling?)."

While Reynolds softened her stance regarding iMEGA just a bit.

"They have removed all calls for regulation and taxation of the Internet from their site. That is a major step in the right direction. For this, as well as for attempting to get the UIGEA repealed, they are to be applauded. Congratulations, iMEGA, you seem to be learning from your mistakes and leaning in a better direction. As they seem to have missed this point in my original article, I will repeat that their lawsuit against the Attorney General is terrific. The lawsuit does not call for any regulations of the Internet and seeks merely to unmake a terrible law."

Still, Reynolds argues that the “pragmatic” approach iMEGA is perhaps adapting in their attempts usually leads to loss of liberty.

"Once regulations are proposed, they are rarely used in the manner in which you envisioned. Any time you hand government power you have little control over how it will be used. So, even if iMEGA does not seek a particular regulatory scheme, by seeking any regulatory scheme they have given the 600 lb. gorilla a toy to use as it will: even if those regulations were ostensibly intended to protect individuals. Protections are promised and liberties are lost."

A conference call was being scheduled between iMEGA's legal representation in Washington, D.C. and Gambling911.com this week.

Edward Leyden, President of iMEGA is slated to speak among a panel in Barcelona along with Gambling911.com Publisher Christopher Costigan at this October's European i-Gaming Congress and Expo. 

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Payton O'Brien, Gambling911.com

Originally published August 1, 2007 12:23 am ET