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IMEGA Anti-UIGEA Hearing Postponed

8 September 2007
Just when we all thought that at long last the draconic UIGEA would be revoked, it seems that we have another wait in store for us. According to IMEGA, all parties, including - the U.S. Department of Justice, the Federal Trade Commission and the Federal Reserve Board of Governors agreed to the last minute postponement. The defendants had already been granted an extension for the deadline to respond to the lawsuit filed by iMEGA in June. Now the hearing has been set back as well.

The initial Sept. 4 court date, did not include oral arguments. On the new date, Judge Mary L. Cooper will now hear oral arguments on iMEGA's petition for a temporary restraining order against the government's implementation of the UIGEA until judgment has been made in the lawsuit.

According to Joe Brennan Jr., iMEGA founder, the restraining order was meant to prevent the government from moving further forward with implementing the UIGEA during the grace period before it responds to the lawsuit, as well as to force the U.S. Department of Justice to respond faster to the lawsuit. On that date as well, the government will also have a chance to give its oral argument for dismissal of the case during the new hearing.

"Given the court's willingness to hear oral arguments, iMEGA feels that a dismissal would be unlikely," the organization says on its Web site.

iMEGA also noted that the extension gives its legal team the opportunity to submit a brief in response to the U.S. government's opposition to the restraining order and the motion to dismiss.

The intent of iMEGA's lawsuit is to encourage regulation and taxation of Internet gaming as an alternative to an outright ban on the industry. According to its site, iMEGA feels that the UIGEA , if allowed to stand, would create a bad precedent that would chill innovation and the growth of e-commerce by U.S. firms, causing the flow of those types of industries and jobs out of the United States.
OCN Staff
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