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Quietly, U.S. Prosecutors Fight Online Casinos

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 legal concept that holds that the U.S. 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 in the United States but fall outside U.S. jurisdiction.

Lawyers said they were not aware of any charges that had been filed. Still, despite the lack of publicity, the campaign, which has gone on for months, has already chalked up some significant victories.

Several big media operations – including Infinity Broadcasting, Clear Channel and the Discovery Networks – stopped running advertisements for offshore Internet casinos last autumn 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 Gruender, the U.S. attorney in the Eastern District of Missouri.

Read the entire article at: International Herald Tribune 

2004 Online Casino News Archive


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