State officials said Monday they'll withdraw a demand that Internet service providers block access to hundreds of sites.

The Interactive Media Entertainment and Gaming Association filed court papers Monday ending its court fight, as part of the settlement with the state of Minnesota.

The state government had cited a 1961 federal telecommunications law designed to restrict phone calls used for wagering. Some legal experts had questioned whether the law could be applied to the Internet. The courts were poised to agree when the state reversed its policy.

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"Whether or not iMEGA ultimately would have prevailed in court is unknown," said John Williams of the state's Alcohol and Gambling Enforcement Division in a letter to Internet providers.

But, the government was not willing to call the gamblers ' bluff. The gamblers have won.


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