Joe Brennan, chairman of internet freedom lobby group Interactive Media Entertainment & Gaming Association (iMEGA) has downplayed reports that they are losing the battle against the Unlawful Internet Gambling Enforcement Act (UIEGA) in the courts.

While Democratic Representative Barney Frank has introduced a bill that would repeal the act, which is really Title VIII of the SAFE Port Act of 2006, iMEGA is taking no chances and is challenging it in the courts, claiming that the title is unconstitutional. Brennan calls the act, which prohibits financial institutions transferring money to unlawful Internet gambling sites, unconstitutional. The problem, according to Brennan, is that the language is too vague and no definition was given by Congress as to what constitutes “unlawful Internet gambling.” Only four states have laws that specifically prohibit online gambling. For the other 46, according to Brennan, a reasonable person has no way to tell whether or not they are breaking the law.

Brennan has a point. If there is no definition provided in the act that explains what gambling is legal and what is illegal, how can someone be expected to obey the law? Even if there was a clear definition, it seems a little hypocritical for the federal government to ban online gambling when 43 states have a state-run lottery, some of which can be played online. Not surprisingly, Nevada is one of the states that does not have a lottery, and Senate Majority Leader Harry Reid, backed by a powerful Las Vegas casino lobby that does not want competition, has blocked attempts to legalize and regulate online gambling in the past. If Frank’s bill passes the House, however, Reid will have a tough decision to make, as his Nevada constituents seem to be split on the issue and his approval rating is already in the gutter.

If Frank’s bill passes both houses, Brennan’s lawsuit against the Department of Justice will be unnecessary. However, after the government froze over $30 million in funds to be payed out to winning players of several online casinos, the debate has heated up. The 27,000 players awaiting their earnings don’t want to wait for Congress. Neither does Brennan.

Tags: Barney Frank, Harry Reid, iMEGA, Interactive Media Entertainment & Gaming Association, Joe Brennan, online casinos, online gambling, SAFE Port Act, UIEGA, Unlawful Internet Gambling Enforcement Act

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