Court Stands Firm On US Ban On Internet Gambling

U.S. appeals court kept a federal ban on Internet gambling, but the ruling seemed to open the door for states to have more say on the matter.

In a decision handed down, the U.S. Court of Appeals for the 3rd Circuit rejected a claim by New Jersey Inc. Interactive Media Entertainment & Gaming Association that recent laws aimed at cracking down on online gambling are unclear, unconstitutional and infringe on an individual's right to privacy. The decision comes during a struggle between the Justice Department, which wants to end online gambling industry, and some members of Congress who are urging legalization and view it as an important revenue generator.

The courts decision stands firm the UIGEA of 2006 that banned credit card companies or other institutions from processing payments for online betting.

Mr. Brennan said that there are 6 states where Internet gambling would violate state laws. Therefore, there are 44 states where this is an opportunity for Internet gaming like online poker to become regulated and normalized.

A few months ago, federal authorities in New York froze bank accounts holding Thirty Four Dollar Million belonging to 27,000 online poker players and last September the state of Kentucky received a court order to get hold of more than 100 Internet gambling sites that were operating illegally.

Opponents of online gambling say such activity would promote gambling addictions and attract minors. However, critics of the ban say the laws remain murky and are sometimes contradicted by state laws.

The casino industry split up on the issue. The American Gaming Association is neutral on online gambling due to the different views of the members. Holly Thomsen, director of communications for the trade group, said that noting that Harrah's Entertainment and MGM Mirage had expressed some interest in Internet gambling.

On May, Rep. Barney Frank, chairman of the House Financial Services Committee, proposed legislation to legalize and regulate Internet gambling so that revenue could be taxed and consumers would have some protections. The legislation is pending in the committee.