Bad News from Feds

[BNO]

This strikes me as a bad sign of things to come:

Web Engines Plan to End Online Ads for Gambling

By MATT RICHTEL
New York Times

SAN FRANCISCO, April 4 - Google and Yahoo, two of the most widely used Web search engines, have decided to stop running advertisements for online casinos, a shift that could thwart the growth of Internet gambling.

The move, which the companies said would take effect by the end of April, comes as federal prosecutors are threatening action against American companies that do business with Internet casinos that are based abroad. The prosecutors are arguing that the American companies are "aiding and abetting" offshore Internet casinos, whose operations are illegal in the United States.

Prosecutors started a grand jury investigation last year, issuing subpoenas to American broadcasters, publishers and Web sites that run advertisements for online casinos.

Executives from Yahoo, based in Sunnyvale, Calif., and Google, based in Mountain View, Calif., declined to say whether they have been subjects of the investigation. The fact that each company announced the change in policy on Friday appeared to be coincidental. Jennifer Stephens, a spokeswoman for Overture, a Yahoo subsidiary that sells paid sponsored links for Yahoo, said the policy change was the result of a "lack of clarity" in the legal and regulatory environment.

Overture also provides advertising links to MSN, the Internet access division of Microsoft. Ms. Stephens said that it would no longer provide casino advertising to MSN, and MSN confirmed that it would, as a result, stop running the advertisements. Ms. Stephens said Yahoo would cease running casino advertisements on its United States Web site, but it would continue to run online casino advertising on its Web sites published in dozens of countries where Internet casinos are legal. Google executives, however, said Friday that they would stop running Internet gambling advertisements in all markets. A spokesman for Google, David Krane, said the policy change was part of an effort to "reflect the growth of our company and ensure we provide the best search experience for our users and advertisers."

A spokeswoman for Lycos, another large search engine, also said Friday that the company had decided in the last few months to stop running gambling advertisements but declined to give details on when the company stopped publishing the ads or why it had made the decision. Search engine companies, broadcasters and experts who follow the Internet gambling industry said the loss of advertising was not big enough to make a major difference to the profits of American broadcasters and publishers. But some industry experts said the policy change could have a big impact on the online casinos and their ability to reach out to customers.

"The Department of Justice is being very effective," said Sue Schneider, publisher of Interactive Gaming News, an online newsletter focusing on the online gambling industry. "It's unfortunate. It doesn't leave many outlets" for casinos to reach American customers. The new policies angered some representatives of the Internet gambling industry who contend the search engine providers were bullied by prosecutors wielding an untested legal theory. "I urge these search engines and other service providers to stand up for themselves and challenge these pressure tactics by federal prosecutors," said David Carruthers, the chief executive of BetonSports.com, an online casino and sports betting site based in Costa Rica.

The site took some 33 million bets last year from people in North America, mostly in the United States, the company said. Although operating an online casino is illegal, state laws vary as to whether it is illegal for an individual to place a bet. In New York, for example, it is not a crime to place a bet over the Internet, state prosecutors said. Critics of the grand jury investigation, including several legal specialists, said that American companies were within their free speech rights to publish online casino advertisements because they were disseminating information. A decision by a panel of the World Trade Organization issued on March 24 that the United States' prohibition on Internet gambling violated the country's free trade obligations. But companies do not appear eager to test the aiding and abetting theory. Several major media companies - including the radio giants Clear Channel Communications and Infinity Broadcasting and Discovery Networks - have recently stopped taking online gambling advertisements. Companies that continue to accept those advertisements, like LookSmart, a San Francisco-based search engine, said they were reviewing their policies. "There's been a general message sent to publishers from various agencies in the government that the legality of this advertising is unclear," said Dakota Sullivan, vice president for marketing at LookSmart. Mr. Sullivan declined to say whether LookSmart had received a subpoena. "There's been a general shift in the atmosphere," he said. "There's a question of whether it's legal, and, beyond that, whether it's right."

[Easy E]

Gambling, like porn, doesn't need advertising in order to grow. People will seek it out.

.... not that I'm equating the two, though it does read like I did!

[LionelHutz]

Don't worry too much. Most of these online casinos have games of chance. There has never been a definative court ruling (to my 2L knowledge) equating poker with a game of chance (such as roulette).

[Steven Punk]

[ QUOTE ]
Don't worry too much. Most of these online casinos have games of chance. There has never been a definative court ruling (to my 2L knowledge) equating poker with a game of chance (such as roulette).

[/ QUOTE ]

Are you the creator of Lionel Trains?

[Rushmore]

[ QUOTE ]
Are you the creator of Lionel Trains?



[/ QUOTE ]

Are you the creator of that thing that is so prevalent at the penitentiary?

[LionelHutz]

[ QUOTE ]
[ QUOTE ]
Are you the creator of Lionel Trains?



[/ QUOTE ]

Are you the creator of that thing that is so prevalent at the penitentiary?

[/ QUOTE ]

What are Lionel Trains? My name is a reference to the lawyer character on the Simpsons. Well, he was the lawyer character until Phil Hartman passed away.

[eggzz]

[ QUOTE ]
What are Lionel Trains?

[/ QUOTE ]

You are kidding right? If not you are really dating yourself. Must be in your early 20's or younger.

[LionelHutz]

[ QUOTE ]
[ QUOTE ]
What are Lionel Trains?

[/ QUOTE ]

You are kidding right? If not you are really dating yourself. Must be in your early 20's or younger.

[/ QUOTE ]

Actually, I'm 26.

[M.B.E.]

There's another poster on this site with the handle "Hutz". That may have something to do with Steven Punk's response.

Incidentally, I have no clue what a "Lionel Train" is, and I'm well past my early 20s. So what is it, eggz?

[Sundevils21]

I also do not know. I have an excuse though because I'm only 19.