Gaming Law International

Online Gambling Advertisers Beware!

The Denver CBS affiliate is carrying an interesting story on local advertising of offshore online gambling sites. Reporter Rick Salinger found that Denver's Pepsi Centre carried advertising for the online gambling site Goldenpalace.com. Interestingly, Salinger picked up on the fact that Goldenpalace is licenced by "an Indian tribe in Canada." The "tribe" in question is the Kahnawake Indian Reservation (near Montreal), which operates an entity called the Kahnawake Gaming Commission which purports to have the legislative authority to regulate and control gaming conducted within and through the Reservation.

What's the big deal with US companies carrying advertising for offshore online gambling sites? The US Department of Justice takes the position that advertising of online gambling sites is "aiding and abetting" the promotion of illegal gambling.

CBS4 is carrying an updated story, reporting that since their earlier report, the advertising of online gambling sites has been temporarily halted (02/28/06).

$4.2 Million Fine Paid by The Sporting News

The Associated Press is reporting that Vulcan Sports Media, Inc., doing business as The Sporting News has agreed to a $7.2 million (USD) settlement with the U.S. government to resolve claims that it promoted illegal Internet and telephone gambling in print, on its website and on its radio stations from the Spring of 2000 to December 2003.

The settlement includes payment of a $4.2 million fine and $3 million in the form of public service advertisements designed to dissuade people from gambling over the Internet or via telephone. The ad campaign will run for three years. Individual civil or criminal liability is not affected by the settlement.

According to the report, the U.S. FBI has said that while there are too many people who gamble online to go after individuals, the FBI and the U.S. Attorney's office  are going after those involved in conducting and promoting Internet gambling.

The New York Times also carried the story.

More on Celebrities Endorsing Online Gaming Sites

Celebrities endorsing online gaming (gambling in the U.S.) - I have a feeling this is going to become a hot issue in the next year in the U.S. As more celebrities are approached to endorse online gaming sites located offshore, they will have to grapple with the issue of the legality of online gambling in the U.S. and whether their endorsement of an online gambling site will be viewed by the U.S. Department of Justice as "aiding and abetting" what may be an illegal enterprise in the U.S.

The Post Chronicle is running a story on the issue here.