US appeals court nixes Internet gambling challenge

September 1st, 2009 By MARYCLAIRE DALE , Associated Press Writer in Technology / Internet

(AP) -- A U.S. appeals court has upheld an Internet gambling ban in a challenge filed by an association of off-shore bookies.

Congress passed the Unlawful Internet Gambling Enforcement Act in 2006. It outlaws online betting that would be illegal in the state where they take place.

The Interactive Media Entertainment & Gaming Association sued in New Jersey. It says the law is unconstitutionally vague and an invasion of a gambler's right to privacy.

The ruling Tuesday comes from the 3rd U.S. Circuit Court of Appeals in Philadelphia.

The law attempts to stop online by choking off the electronic processing of money for online wagers or payouts.

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