U.S. Appeals Court Upholds Ban on Internet Gambling

PHILADELPHIA — In an important decision on Internet commerce by a U.S. appeals court, the federal Unlawful Internet Gambling Enforcement Act of 2006 has been ruled constitutional.

The 3rd U.S. Circuit Court of Appeals on Tuesday rejected an appeal by the Interactive Media Entertainment and Gaming Association (IMEGA), which found that the law "clearly provides a person of ordinary intelligence with adequate notice of the conduct that it prohibits."

IMEGA, a New Jersey-based nonprofit, had sued the Federal Trade Commission, the Federal Reserve System and the U.S. Attorney General, claiming the law banning online gambling is vague and violates an individual's privacy rights. It also said the act is contrary to U.S. treaty obligations.

The act bans credit-card companies or other institutions from processing payments for online betting.

The 3rd Circuit kicked aside IMEGA's privacy arguments, finding that gambling is not protected by the Constitution.

The court said that in its effort to locate a constitutional privacy right to engage in Internet gambling from one’s home, IMEGA primarily focused on two precedential cases for the privacy issue, including Lawrence vs. Texas, which involved state laws that barred certain forms of sexual conduct between consenting adults in the privacy of the home.

“As the U.S. Supreme Court explained in Lawrence, such laws ‘touch upon the most private human conduct — sexual behavior — and in the most private of places, the home,’” the court said. “Gambling, even in the home, simply does not involve any individual interests of the same constitutional magnitude. Accordingly, such conduct is not protected by any right to privacy under the Constitution.”

Gary Kaufman, an attorney with the Los Angeles-based Kaufman Law Group, told XBIZ that advocates of Internet gambling should shift their efforts to swaying public policy.

“With the current Supreme Court makeup, and with Congress now controlled by liberal democrats, this means that proponents of Internet gambling should focus their efforts on lobbying Congress to repeal the federal ban, rather than attempting to fight it out in the courts, he said. “I predict much more success on these types of issues by way of legislation.”

In May, Rep. Barney Frank proposed legislation to legalize and regulate Internet gambling. That piece of legislation is pending in committee.

The case is Interactive Media Entertainment and Gaming Association vs. U.S., 08-1981.

Related:  

Copyright © 2026 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Florida Congressman Files Latest Bill to Repeal Section 230

Rep. Jimmy Patronis of Florida has become the latest member of Congress to propose legislation that would repeal Section 230 of the Communications Decency Act, which protects interactive computer services — including adult platforms — from liability for user-generated content.

Irish Parliamentary Committee Weighs Stricter AV Laws

The Irish national parliament’s Joint Committee on Arts, Media, Communications, Culture and Sport met Wednesday to discuss regulation of online platforms and improving online safety, including calls for stricter age verification by adult sites.

Ofcom Issues Guidance on Age Check Placement for Adult Sites

U.K. media regulator Ofcom on Wednesday published its recommendations for where and how adult sites should deploy age checks as required for compliance with the Online Safety Act.

Tubes Booster Launches Web Hosting Solutions

Content hosting platform Tubes Booster has launched two new hosting solutions.

YourPaysitePartner Rebrands as Paysite.com

YourPaysitePartner has officially been rebranded as Paysite.com.

SWR Data Announces 2026 'State of Creator' Winter Report

Adult industry market research outfit SWR Data has announced that it will release data from its annual State of the Creator survey at an XBIZ LA workshop, taking place at the Kimpton Everly Hotel.

Holly Randall Launches Marketing Firm, Signs Stripchat Deal

Holly Randall has launched her new marketing firm, Holly Randall Agency, and signed the agency’s first deal with Stripchat.

2026 XBIZ Conference Speaker Lineup Announced

XBIZ is pleased to announce the release of the full speaker lineup for XBIZ 2026, the latest edition of North America’s largest adult industry conference, set to take place Jan. 12-15 at the Kimpton Everly Hotel in Hollywood.

Dreamcam Rolls Out Browser-Based Passthrough VR

Dreamcam has introduced passthrough VR to its livestreaming platform.

2026 TEAs Nominees Announced

Nominees for the 2026 Trans Erotica Awards (TEAs), presented by Clips4Sale, have been announced. The ceremony will return to the Avalon in Hollywood on Sunday, March 8.

Show More