US Congress Passes on i-Gaming Legislation

A 32-32 vote in the House Financial Services committee defeated a bill requiring Congress to define ‘unlawful Internet gambling”. Supporters hoped the bill would provide momentum to legislation legalizing i-gaming in the US. Two bills authored by committee chairman Rep. Barney Frank (D-MA) - HR 2046 and HR 5767 - are stalled, with no apparent way forward during what remains of the 110th Congress.

In the aftermath of this defeat, iMEGA has been asked to comment on the situation in Washington DC:

iMEGA stated our support for Rep. Barney Frank’s legislation (HR 2046 and HR 5767), but rather than just be another voice in the crowd on that issue, we’re focusing our resources on our litigation (iMEGA v. Gonzales, et al) instead of lobbying. To do otherwise weakens our effort in the Courts.

iMEGA’s members and supporters have always believed that the best way to defeat UIGEA was in Federal Court. In “Round One” of our fight, the Court recognized our standing (which most of the industry and their attorneys said we’d never get). Our case was dismissed, but the Judge never addressed our arguments - that’s why we’re headed to the Third Circuit Court of Appeals.

When we look at it, here’s how things stand right now in this fight:

1. iMEGA’s challenge has been accepted by the Appeals Court, and the Court has established our standing to bring suit on the behalf of our members and the i-gaming industry.

2. All i-gaming legislation in the US Congress has stalled, with no clear way forward.

On balance, we feel good about where we’re heading with our strategy.