UIGEA update: Legal challenges, class action suits and interesting interpretations

There’s been a lot of chatter this week following the finalization of UIGEA regulations by the Fed and Treasury. There’s also been a good deal of action from pro-poker forces aimed at fighting the move.

First up is a new chapter in an existing story - iMEGA filed their response brief in their standing challenge to the UIGEA on constitutional grounds. The core of iMEGA’s claim has to do with the vagueness of the law; read more about their brief and the lawsuit against UIGEA here.

Second is a more interesting and recent development - it looks like the PPA is considering a class action lawsuit against the Federal Government over UIGEA. Yesterday, several PPA members received an email that laid out the idea of the lawsuit in broad terms. Here’s an excerpt:

Right now, the Poker Players Alliance (PPA) is preparing for a potential lawsuit against the UIGEA because its vagueness will likely force banks and other payment processors to over-block lawful Internet poker transactions. Thusly, the PPA is looking for a few good men and women to stand with us in a potential lawsuit. As a paid PPA member, your support has been crucial to our successes. The PPA is prepared to underwrite the complete cost of potential litigation we just need members like you to be part of our action.

Thanks to Pokerati for the heads up on that one.

Finally, Rick Alm over at the Kansas City Star has an interesting take on the new regs - he thinks they might actually have accidentally laid the foundation for legalized online poker. Excerpt:

[...]the states and tribes appear to be quite free under these new rules to let the cyber dice roll - and start raking in a new and lucrative category of tax dollars.

Nevada, New Jersey and a handful of other states have been held back so far only by threats of prosecution from the Justice Department - which now may be handcuffed itself.

Legal intrastate gambling may prove to be the game changer that rapidly paves the way to legal interstate and ultimately international gambling by Americans on the Web.

Whole thing here.