A Washington State appeals court on Monday rejected arguments that the state's ban on Internet gambling violated the US Constitution.

Lawyer Lee Rousso had been fighting for recognition that the 2006 Unlawful Internet Gambling Enforcement Act (UIGEA), which effectively banned Internet gambling by outlawing the transfer of funds from a financial institution to Internet gambling sites, violated a clause of the constitution that gives the federal government has the right to regulate interstate commerce.

Rousso's appeal came after he lost his original case in May last year. On that occasion he was joined by around 70 online poker players who rallied in support outside the courthouse.

In handing down their verdict, the judges said that "Ultimately, given the importance of the state's interest in protecting its citizens from the ills associated with gambling, and the relatively small cost imposed on out-of-state businesses by complying...Rousso has failed to meet his burden....," the Seattle Post-Intelligencer reported.

Rousso has said he is considering taking the case to the state's supreme court.