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Internet Gambling Law Challenged

By Mary Pat Gallagher
September 27, 2007

A federal law that targets online gambling by making it illegal to make or receive payoffs violates the First Amendment, a federal suit charges.

A not-for-profit association of Internet gamers and gaming companies is asking a federal judge in Trenton, NJ to block enforcement of the Unlawful Internet Gambling Enforcement Act ('UIGEA') and to issue a temporary restraining order.

The suit alleges that the law, enacted last October, restricts a form of consensual private conduct that is legal in many states. The statute does not outlaw Internet gambling outright, but cuts off its proceeds by criminalizing the transfer of funds by U.S. banks and credit card companies to entities that run online gambling sites. It provides immunity from civil liability for blocking a restricted transaction or one reasonably believed to be restricted.

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