The US 3rd Circuit Court of Appeals has upheld the Unlawful Internet Gambling Enforcement Act of 2006, rejecting claims that the law was unclear and may intrude on people's right to privacy.

The law was challenged by the Interactive Media Entertainment and Gaming Association on behalf of the online gambling industry.

Despite the judgement, the judges did clarify that the legality of internet gambling transactions depend on state law where the person placing the bet is located and the laws where the betting operator is located. The court stated that UIGEA does not set out a complete federal ban on internet gambling.

"The court made it clear,"said Joe Brennan Jnr, chairman of the association, "that gambling on the internet is unlawful where state law says so. But there are only a half dozen states which have laws against internet gambling, leaving 44 states where it is potentially lawful. It’s not perfect, but it’s a good start."