• iMEGA Speaks out on Proposed UIGEA Regulations

    03 October 2007

    Newspaper

    iMEGA Speaks out on Proposed UIGEA Regulations

    iMEGA is confident that the important and fundamental rights for which they are fighting in federal court in New Jersey will be vindicated.

    In our ongoing lawsuit in the U.S. District Court for the District of New Jersey, iMEGA has pointed to the unconstitutional, chilling effect that the Unlawful Internet Gambling Enforcement Act (UIGEA) of 2006 has already imposed on all of our digital civil rights, by stifling innovation on the Internet and impeding our otherwise content-neutral financial system. The proposed regulations jointly promulgated today by the Federal Reserve Board of Governors and the Department of the Treasury would, if anything, aggravate these already intolerable circumstances.

    The regulations proposed under UIGEA continue a trend to regulate our Internet freedoms by passing the responsibility to define legal and illegal purposes behind a web-based financial transaction on to neutral third parties, who then become victims of the system. In this case the victims caught between the government’s criminal punishment and ill-defined regulations are the payment system providers – credit card companies, banks, third party payment clearing houses.

    The regulations, while they are supposed to provide for a system which identifies legal transactions between persons who are allowed to enjoy Interactive gaming, instead virtually condemn the system to complete elimination because of the payment system providers’ risk of criminal penalties and injunction against further financial transactions if they guess wrong. There are no standards in the proposed UIGEA regulations which allow companies or individuals to safely navigate the inconsistent laws or ever-changing web business environment.

    We believe that our government can–and must do better–if the Internet is to continue to be the engine for growth and prosperity for all of us. That being so, iMEGA is confident that the important and fundamental rights for which we are fighting in federal court in New Jersey will be vindicated.

    Read more on iMEGA.

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