October set to be big month for American gambling legislation

Last Sunday was the first anniversary of the passing of UIGEA (Unlawful Internet Gambling Enforcement Act), and many attempts have been made to overthrow it during this time. The APCW (Association of Players, Casinos and Webmasters) has taken a look at some of the upcoming developments which may compromise or even defeat the UIGEA.

In their latest “Perspectives” webcast, the APCW highlighted several legal developments which will all come to a head this October, and that will hopefully combine to significantly weaken the current prohibition on online gambling. These developments are:

- IMEGA (Interactive Media Entertainment & Gaming Association) filed a lawsuit to challenge UIGEA’s constitutionality, and the US Government’s Motion to Dismiss was denied by the Hon. Judge Mary Cooper. Since the trial is now in progress, IMEGA is now hopeful that a positive outcome may be in the works. A ruling on this case is expected sometime in October.

- The Antigua vs. US complaint before the WTO is reaching its breaking point, and as the affected countries add pressure the WTO is expected to start allowing economic sanctions against the US in October, which may include granting Antigua and other countries permission to use American copyrights and intellectual property.

- Finally, also in the context of the WTO complaint, the European Union is expected to seek up to $100 billion in compensation for damages to the European gambling industry after the passing of UIGEA. The US already made a preliminary compensation offer, which was deemed inadequate, and a new compensation figure is being negotiated. The latest deadline for the United States to agree on compensation is October 22.