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Feds Target Online Gambling

UNITED STATES – As reported by the USA Today: "Federal prosecutors have begun a wide-ranging effort to curb the growing popularity of online gambling in the United States by quietly threatening legal action against American companies that do business with Internet casinos and sports betting operations based outside the country, lawyers and industry executives say.

"The investigation into the activities of media, public relations and technology companies relies on a controversial legal concept that holds that the American businesses, by providing advertising and other services that support Internet gambling, are 'aiding and abetting' online casinos. That gives prosecutors an indirect way to attack the overseas enterprises, whose operations are illegal here but fall outside their jurisdiction.

"…Several big media operations — including Infinity Broadcasting, Clear Channel Communications and the Discovery Networks — stopped running advertisements for offshore Internet casinos last fall in light of the threat of further scrutiny that might lead to prosecution.

"The investigation of the Internet gambling industry, lawyers said, is being run by Raymond W. Gruender, the United States attorney in the Eastern District of Missouri.

"…In trying to crack down on Internet gambling through American companies that provide support services, particularly advertising and marketing, the government may find itself on shaky legal ground, the industry, its lawyers and some independent legal analysts say.

"The reason, analysts say, is that broadcasters and marketers could well be within their First Amendment rights in advertising on behalf of Internet casinos…"

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