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  1. #1
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    Default Department of Justice Increases Anti Gambling Pressure!

    Uncle Sam attacking gambling ads?


    Media outlets across America are being subpoenaed by the U.S. Department of Justice to hand over all information related to online gaming advertisers dating back to 1997.

    "They're going after everybody. It's pretty broad," said law professor and Internet gambling expert Nelson Rose. "It looks like they're going after every publication that took Internet gambling ads, even if they're no longer taking them, like Gambling Times."

    It appears the subpoena is targeting websites, newspaper and magazine publishers as well as radio and TV broadcasters. The subpoenas are apparently a part of a grand jury investigation that's being conducted by the U.S. Attorney's Office in the Eastern District of Missouri.

    Because grand jury investigations are ultra-secretive, little information is known about the nature of the investigation. However, Rose said the U.S. Attorney is not necessarily going after the companies who are being subpoenaed.

    "It doesn't mean that these people are targets, but they could be," said Rose, who has obtained a copy of the subpoena. "I don't know if they're doing this mainly to scare people or they're going to try to make some cases."

    If the goal is to scare people, the subpoenas have already had an effect. Some radio broadcasters have reportedly dropped offshore sportsbook ads, as have a number of sports gambling-related websites.

    "I know that a couple - Don Best and Jim Fiest - who have taken sportsbook ads completely off (their sites)," said Pete Fiutak, editor of Collegefootballnews.com (CFN). "I don't think we're going to do that quite yet."

    CFN was one of the websites who was served a subpoena regarding its sportsbook advertisers. The subpoena is seeking information only; CFN was not ordered to take its sporstbook ads down.

    "We're just going to comply in every way and do whatever they want and go from there," said Fiutak.


    Besides scaring people, the U.S. Attorney could also be attempting to build a case that businesses and individuals who accept and run online casino and sportsbook ads are aiding and abetting illegal gambling activities.
    The subpoenas have sent shock waves through the online sports gambling industry, particularly among companies based in the United States.

    "It's pretty serious," said Rose. "There is an Internet gambling conference that was scheduled for the very beginning of November in Orlando and they just cancelled it because it was basically going to be a lot of lawyers and executives, and the lawyers are having to deal with this rather than go to a conference.

    "When you get subpoenas from the U.S. Attorneys and they tell you it's for the grand jury, you've got to take it seriously."

    Mickey Charles, owner of the Sports Network, a popular sports website, organized the Interactive Gaming & Entertainment (IGE) conference. He released a statement regarding the cancellation last week.

    "The postponement was necessitated because of the current, and unfortunate, circumstances that have developed out of the Department of Justice offices located in St. Louis, Missouri," he said.

    "They are, as many of you are undoubtedly aware, pursuing a course of action determined to deter and hamper the offshore and online gaming industry, with intent to curtail advertising, marketing, merchandising, promotional and financial routes that are being currently pursued."

    Charles went on to list a number of organizations that were subpoenaed including the National Association of Broadcasters, Magazine Publishers of America, Independent Press Association, National Newspaper Association, Newspaper Association of America, and Suburban Newspapers of America.

    "This action has caused some of our speakers to attend to the needs of clients immediately and in the weeks ahead, and necessitated a number of attendees having to address this matter internally whether they were directly affected by it or not at this time," said Charles.

    At present, Covers has not received a subpoena to hand over information to the U.S. Attorney. Since Covers is based in Nova Scotia, Canada the likelihood of Covers receiving a subpoena is slim.

    "They could do it if they want to, but it's unlikely," said Rose. "When you get into international it gets very complicated and difficult."

    Covers contacted the U.S. Attorney's Office in St. Louis but spokesperson Jan Diltz said that she would be unable to comment on any subpoenas related to any grand jury investigation. She also said she would be unable to confirm or deny the existence of any such subpoenas.

    "It's a big mystery as to what the actual political agenda is behind all this," said Rob Gillespie, president of BoDog Sportsbook and Casino.

    This is not the first time the U.S. Attorney's Office in the Eastern District of Missouri has been involved in an online gambling investigation.

    U.S. Attorney Raymond W. Gruender took action against PayPal for processing gambling transactions for customers located in the district between June 2000 and November 2002.

    PayPal, which stopped processing online gambling transactions in November 2002, subsequently agreed to pay a $10 million fine.

  2. #2
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    Default

    The above article was published on October 20th and is credited to:

    Between The Lines Mon, Oct 20, 2003
    Reed Holmes

    I honestly believe that staying informed on what is going on in our industry is imperative. I understand some have tried to twist this as an "alarmist" post, but I was just relaying what I read for other who may have missed the original article. Isn't it sad when published news articles are threatened with censorship to "protect" grown adults from what's happening in the world around them?

    I am sorry if the article caused a row or undue "democratic" process.

  3. #3
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    PS I am NOT trying to scare people out of the busines nor do I need any additional taffic from one or two posts here. I am sad that people I considered friends and even partied with in Miami would turn on me like this. I wont post here again your problems with me are solved.

  4. #4
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    Dont get sick Tammie its just business

  5. #5
    VPJunkie is offline Private Member
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    Are you here to cause trouble, Lou?

    Many members were sorry to see you leave, but that's the choice you made. Please don't be angry at us for your choice.

  6. #6
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    I wasnt mad at anyone I just didnt like the witch hunt today and the reactions really are a major disapointment. I always considered most of the people here friends and dont understand the sudden attacks in the private areas.

  7. #7
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    Cindy I considered you a friend too and am shocked what YOU have been saying about me personally. Why was this necessary?

  8. #8
    VPJunkie is offline Private Member
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    Why was any of it necessary? You chose your path.

  9. #9
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    Default

    Glad I did too after seeing this. Goodbye.

    PS: I have screen captures of the private discussions and PMs if anyone is totally confused about this thread. Members know exactly what happened today.

  10. #10
    WildBill is offline Private Member
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    Professor nothing of consequence other than discussing the post that you made was carried out for the benefit of the public forums members and newer webmasters so as not to scare them. You are making this a personal issue.

  11. #11
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    I don't see what is alarmist about the American government saying that they don't want casinos hosted in America. All that will happen is that they will be hosted elsewhere - we've seen a few casinos opening in England recently, and we are grateful for the extra income.

    If Visa don't want to handle payments either, then I'm sure that the smaller alternative payment systems will grow to replace them.

    Don't forget that nature abhors a vacuum, so if the American Government creates one, natural forces will soon fill it.

  12. #12
    breakbets is offline Public Member
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    Ace Fun, I think most of the fear is coming from American portal owners. The government hasn't decided if it's even legal for Americans to advertise internet gambling, even IF the portal and casinos are hosted outside the US. Of course, they haven't said it's NOT legal yet, so.... :-?

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