The Interactive Media Entertainment & Gaming Association (iMEGA), a group of people formed to challenge the legitimacy of the Unlawful Internet Gambling Enforcement Act (UIGEA), saw its challenge shot down in flames in a court decision rendered on March 2.

iMEGA challenged the UIGEA on a number of issues, including the right to free speech, the right of states to regulate gambling, and the inconsistency of the UIGEA with the foreign trade obligations of the US with respect to its membership in the World Trade Organization (WTO).

US District Judge Mary Cooper dismissed the complaint outright, pointing out that iMEGA either did not have the right standing to make a complaint, or that the court was not able to rule on certain issues out of its jurisdiction.

The one point that iMEGA won - and frankly a very minor point at that - was that Judge Cooper agreed that iMEGA was of legal standing to challenge the UIGEA in a Federal appeals court.

iMEGA directors hailed this as a major victory, claiming that this was what the government had been trying to prevent. They expected to file an appeal within two months.

The trouble is, every single point they brought up in the original complaint was dismissed. So how in the world does iMEGA expect to go into battle in a Federal appeals court without any ammunition?

If you ask me, this is a very hollow victory, if one can characterize the decision as a victory at all. In the minds of respected industry observers, and in my own mind, this is a resounding defeat. But what the heck? The industry has nothing to lose by allowing iMEGA to continue pounding on the walls - so naturally we’ll all support iMEGA’s day in court.

But don’t hold your breath.