Internet gambling is generally illegal in the US, whether it is
based within the country or offshore. In practice, however, it is
difficult for enforcement officials to prevent US citizens
accessing offshore internet sites, and they have therefore relied
on other tactics to counteract the proliferation of gambling
sites.
One attempt focused on the methods of paying for the gambling
services – seeking to pass legislation that would ban the use of
credit cards or any other form of electronic payment for off-shore
internet gambling sites.
Another tactic was put into play by the Department of Justice in
June last year, when it sent letters to a variety of groups,
including the National Association of Broadcasters (NAB) and the
Magazine Publishers of America, advising them that individuals and
entities publishing adverts for on-line gambling might face
prosecution.
Several months later the Justice Department issued subpoenas to
a variety of media outlets, internet portals, public relations
firms, and other companies, seeking detailed information on the
purchase and placement of on-line gambling advertisements.
Following this, some popular internet sites, including Google
and Yahoo!, stopped accepting adverts for internet gambling
sites.
According to Louisiana-based Casino City, the Justice Department
crackdown has hit hard. The Casino City web site claims to be the
most popular gaming portal on the web, covering online casinos and
sportsbooks, land-based casinos, gaming strategy, and news. The
company says the adverts – for sites which it says are legal in the
countries in which they are based – form an important part of its
revenue.
"The public has the right to see the wealth of information we
provide on casinos and sportsbooks, and we have the First Amendment
right to advertise on-line gaming on the web to support its free
publication," said Casino City CEO Michael Corfman in a
statement.
The company has asked a local court for a declaratory judgment
that advertising on-line casinos and sportsbooks is
constitutionally protected commercial free speech under the First
Amendment.
"The NAB Letter and subpoenas," says the complaint, "have
created a fear of prosecution within the advertising community
resulting in a chilling effect upon the exercise of free speech. On
information and belief, as a direct result of the DOJ threats, a
number of internet advertising portals based in the United States
have ceased to accept advertising of legal casino and sports
betting."
