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Lawyer: Online Gambling Like Off-track Betting25 May 2001NEW YORK – May 25, 2001 –As reported by the Las Vegas Review-Journal: "A man convicted last year of violating federal law for running an offshore Internet gambling operation was doing no more than what occurs daily at off-track betting parlors in New York, his lawyer told federal appeals judges this week. "If the conviction of Jay Cohen is upheld under the 1961 Wire Act, off-track betting could be declared illegal in New York and seven other states, Cohen lawyer Mark Baker told a three-judge panel of the 2nd U.S. Circuit Court of Appeals on Monday. "…U.S. Attorney Joseph DeMarco argued off-track betting, unlike Internet gambling, already is regulated. Off-track betting, DeMarco added, is governed by a different federal law, the Interstate Horse Racing Act of 1978. "`The defendant's argument that he modeled his business after off-track betting is an ignorance-of-the-law defense. It's irrelevant,' DeMarco said. "…`There is nothing to do now but wait,' Cohen said after the 37-minute hearing. He donned a World Sports Exchange ball cap, which displayed the name of the company he founded in 1997 in Antigua with partner Steve Schillinger. "…Cohen, Schillinger and 19 other online gambling operators were indicted in March 1998 for violating the federal wire act. The 33-year-old Cohen is the only one who has returned to the United States, stood trial and been convicted. "…The Cohen appeal is being closely watched by Congress, where lawmakers are weighing whether to proceed with legislation to prohibit Internet gambling…" |