Online Gambling Prohibition Action Withdrawn by Minnesota

The Minnesota Department of Public Safety has dropped its enforcement action against eleven Internet Service Providers (ISPs) that provide Minnesotans with access to online gambling websites.

In a letter from John Willems, Director of the department’s Alcohol and Gambling Enforcement Division (AGED), the ISPs were informed that it was not mandatory to block state residents’ access to a list of 200 online gambling sites. The Department of Public Safety added that it will not issue any future orders, indicating that the issue of online gambling was better addressed though legislative efforts.

Willems noted that whether or not iMEGA would have prevailed in court, but, notwithstanding, the AGED has agreed to withdraw the notice.

Willems referred to the civil suit filed by the Interactive Media Entertainment & Gaming Association (iMEGA) in the U.S District Court of Minnesota in his rescission letter.  iMEGA’s suit, Willems wrote, contended that "the notice sent to you and other ISPs was not legally valid" and that the notice "violated the First Amendment and the Commerce Clause."

Joe Brennan Jr, iMEGA Chairman said that it was clear the public was opposed to this. The swift negotiated settlement by DPS and AGED demonstrates both the merit of iMEGA suit and the shaky legal ground that the original ‘black list’ were based.

As part of the settlement terms, iMEGA was given copies of letters sent to each ISP along with confirmation of delivery. In return, iMEGA has agreed to withdraw its suit in the U.S District Court before the 9th June deadline for Minnesota to respond.

State representative Pat Garofalo, who introduced legislation last month to bar the Minnesota Department of Public Safety from forcing the ISPs to block access to the gaming sites, indicated that the matter was concluded after "the legal position underlying the issuance of the notices was reconsidered", and specifically credited the Poker Players Alliance (PPA) and the Interactive Gaming Council (IGC) with contributing to the conclusion of the matter.

Garofalo said that he is more than happy to withdraw the bill and in its place sponsor a discussion aimed at establishing a framework for regulating and licensing the online gaming industry.

In April the Minnesota Department of Public Safety, Alcohol and Gambling Enforcement Division, served written notices to eleven national and regional telephone and ISPs, instructing them to prohibit access by all Minnesota-based computers to nearly 200 online gambling websites.

Notices were delivered to the ISPs citing U.S. Code, Title 18, Section 1084 (d), a statute enacted in 1961 in recognition of the need for states to control illegal gambling activities. The 'black list' of sites provided by the Minnesota Department of Public Safety included the likes of FullTiltPoker, Bodog, Everest Poker, William Hill Casino, and PartyCasino.

John Pappas, Executive Director of the PPA said that they are extremely proud of its membership for unifying quickly and effectively in opposition to this action. The PPA is looking forward to working with all parties involved to reach a sensible framework for regulation of this 21st Century pastime.

Written for Online Keno by Joy