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Nevada Litigation Blog

Unlawful Internet Gambling Enforcement Act Held Constitutional

The Third Circuit Court of Appeals has upheld as constitutional the Unlawful Internet Gambling Enforcement Act of 2006, 31 U.S.C. § 5361 et seq. in Interactive Media Entertainment and Gaming Association, Inc. v. Attorney General of the United States, 2009 WL 2750279 (N.J.).  This law was enacted by Congress to render criminal the act of persons engaged in the business of betting or wagering knowingly accepting for unlawful Internet gambling various forms of financial instruments such as credit cards, electronic fund transfers and checks.  Interactive Media asserted a variety of claims based upon an expressive association claim under the First Amendment, a commercial speech claim under the First Amendment, overbreadth and vagueness claims, violation of rights of privacy claims, violation of treaty obligations and violation of the Tenth Amendment prohibition under the ex post facto clause.  Each claim was rejected.  The Third Circuit did not reach any decision relative to the validity of the final rule adopted by the Department of the Treasury and Board of Governors of the Federal Reserve titled Prohibition on funding of Unlawful Internet Gambling, 73 Fed.Reg. 69382-01 (November 18, 2008).

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