Court upholds US ban on online gambling
Posted by Gavin Smith on 16 Sep 2009 at 14:09
An American appeals court has upheld the country's ban on internet gambling, although the move seems to have laid the ground for some US states to have more influence on policy.
Last week the US Court of Appeals for the third circuit turned down a claim by Interactive Media Entertainment & Gaming Association, claiming the laws are too vague and infringe on the right to privacy. They also claimed the current law is unconstitutional.
The ruling was made as the Justice Department faces the prospect of several members of Congress attempting to push forward a change in the law to overturn the ban.
Internet gambling has also been seen as a crucial revenue generator for America during the current downturn.
Quoted by the Wall Street Journal, Joe Brennan Jr, chairman of Interactive Media, said: "We're disappointed that the court didn't overturn the law,
"We lost the decision, but the court gave us an awful lot to work with going forward."
According to the paper, the court declared: "It bears repeating that the Act itself does not make any gambling activity illegal.
"Whether the transaction in Interactive's hypothetical constitutes unlawful Internet gambling turns on how the law of the state from which the bettor initiates the bet would treat that bet."
Mr Brennan added there are only six states where internet gambling would violate local legislation, meaning there are 44 states where there is an "opportunity" for gaming over the web to become regulated.
This year the American authorities have taken a tougher stance on Internet gambling, freezing bank accounts containing $34 million belonging to thousands of online poker players.
Last September Kentucky received a court order to seize over 100 web gaming sites that it claims were operating beyond the law.
Those against online gambling in America say that it can fuel addiction and can tempt children, but critics of the current legislation say the laws are too vague and clash with state laws in some circumstances.
Elsewhere, the likes of the American Gaming Association have said there is no consensus within its group due to a wide range of opinions belonging to its members.
In may this year senator Barney Frank put forward legislation which would overturn the ban on internet gaming and regulate it, so the US can rake in tax and protect consumers. It is yet to be fully debated.
