In a resounding victory for those who love the government telling people what they can and can’t do, the US 3^rd Circuit Court of Appeals upheld the Unlawful Internet Gambling Enforcement Act (UIGEA), rejecting the challenge by the Interactive Media Entertainment & Gaming Association (iMEGA).

iMega’s argument was that the law was too vague and infringed on the privacy rights of individual citizens. The court disagreed, stating that any vagaries are inconsequential. The good news is that the judges clarified that the law does not actually ban online gambling. Judge Dolores Sloviter wrote that “the Act itself does not make any gambling activity illegal.” She said that whether or not a transaction is unlawful “turns on how the law of the state from which the bettor initiates the bet or would treat that bet.”

That at least is good news for proponents of online gambling. According to the court, only individual states decide whether the gambling transaction is legal or illegal. Strangely, that interpretation is in keeping with the Constitution. Imagine that. According to iMEGA chairman Joe Brennan, currently only 6 states have laws against online gambling, so under the court’s ruling, internet gambling is legal for residents of the other 44 states, as long as the online casino isn’t located in the other 6. Brennan said that though board members were disappointed with the ruling, they saw that clarification that only states determined legality as a silver lining.

What happens next is anyone’s guess. The case can still be appealed to the Supreme Court. For players who want to engage in online gambling in those 44 states, an overturning of UIGEA may not be as necessary as once thought. Still, there are two pending bills in Congress – one in the House and one in the Senate – that could repeal UIGEA. They are expected to be heard in Congress some time next year.