Constitution Challenge To Online Gaming Ban
Posted on January 11, 2008 - Filed Under Legal and Law
Online gaming has been incredibly popular, particularly the various forms of poker. That all changed in 2006 when the federal government effectively banned a majority of online gaming. The gaming industry is finally fighting back.
The Unlawful Internet Gambling Enforcement Act of 2006 was a shock too much of the gaming industry. Although it had been slowly moving through Congress, there was no indication that it would be passed into law without a significant amount of debate and lobbying. In a typically congressional move, all of the uproar about a ban was bypassed when the Act was attached as a rider to legislation detailing how to protect our ports from terrorist attacks! Terrorist and online poker – a natural mix if ever there was one!
Regardless, much of the online gaming industry was out of luck. The Act took a unique approach to attacking the industry. Instead of just outlawing everything, it went after the money. Credit card companies and banks were in the crosshairs. Civil and Criminal penalties were authorized against them if the processed any transactions for online gaming with the exclusion of horse racing. Ironically, the World Trade Organization has ruled this online gaming ban to be a treaty violation.
Like sheep being led to the slaughter, the online gaming industry did nothing. Publicly traded online poker companies saw their stock crushed overnight. Most sites closed entirely or just repositioned themselves to handle non-US traffic. All and all, it was a bad time. Now, however, the gaming industry is finally getting its act together. Yep, it is suing the federal government in an effort to stop the ban.
The Interactive Media Entertainment & Gaming Association was formed this year. Although the Association claims many laudable goals, attacking the online gaming ban is the focus. To this extent, the Association filed suit against various agencies and individuals in the federal government to achieve said goal. The Association is seeking an injunction against the enforcement of the act.
The basis of the lawsuit is a rather vague statement that people should have the right to play online games in the privacy of their home. The merits of the argument are difficult to predict without more information on exactly how the Association intends to attack the government. Regardless, it is clear that the gaming industry is finally getting its act together. The only surprise is it took this long given the billions of revenues in online gaming.
Richard A. Chapo is an internet attorney with SanDiegoBusinessLawFirm.com.
Tags: ban, constitutional challenge, gaming, injunction, internet law, legal, poker
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