Legal Action Against Poker Affiliates

[pokerduker]

Is anyone aware of any legal action taken against a US Citizen for operating an online poker affiliate business? I would prefer NOT to turn this thread into one that discusses the legality of online poker or even the legality of running an online poker affiliate business. I would like to keep it to a discussion on legal actions taken against those operating an online poker affiliate business (rakeback or non-rakeback).

Thanks in advance!

[Trouthunter]

No actual action was taken, but an internet site out of Washington was ordered to shut down by the state gambling commission and complied before an action was filed. I don't remember the exact details, but it was reported in the Seattle PI, who also noted that they had been told that running Daniel Negraneau's column was probably illegal because he advocates online play.

[DavidNB]

Don t know for surte but I beleive someone here has discuss this in the past. I think it was said that a US citizen can be charged for running a poker site that is accessable in the US.

[LinusKS]

[ QUOTE ]
Because gambling operations are based in foreign countries such as Antigua and Costa Rica, and individual gamblers have extremely low odds of being prosecuted, websites and media organizations that sell gambling ads are being caught in the middle.

One of the biggest losers is Sporting News, the media company owned by Microsoft co-founder Paul Allen. In January, the company surrendered $4.2 million in revenue to avoid prosecution for advertising gambling sites between 2000 and 2003 in its magazine, as well as on its website and syndicated radio network.

[/ QUOTE ]

http://www.wired.com/news/politics/0,70660-0.html


[ QUOTE ]
--In January 2000, Paradise Casino agreed to forfeit $14 million. In 2003, PayPal Inc., an online payment network, forfeited $10 million to settle allegations it aided in illegal online gambling.

--In 2004, the Discovery Channel forfeited $6 million for accepting money for ads for Internet gambling companies PartyPoker.com and ParadisePoker.com. Also in 2004, St. Louis sports radio stations KFNS-AM, KFNS-FM and KFRT-AM paid $158,000 to settle allegations that they promoted illegal online gambling.

[/ QUOTE ]

http://www.revenews.com/bradwaller/archives/001363.html


[ QUOTE ]
An online gambling portal operator, CasinoCity.com, which runs advertising from numerous online gambling websites, sued the Department of Justice in August, 2004.
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The complaint sought a judicial determination confirming Casino City’s “constitutional [sic] rights [sic] to engage in lawful commercial free speech”...
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On February 15, 2005, the suit was dismissed with prejudice. The judge upheld each of the grounds to dismiss argued by DOJ. The judge wrote a sweeping ruling. Not content with dismissing the suit based on the several procedural grounds argued by the DOJ, the judge made what many will consider to be a substantive ruling that the advertisements in question are not protected by the First Amendment guarantee of the right to commercial free speech. The court said:


“The Central Hudson test, when applied to the facts of the case clearly shows that plaintiff has failed to establish a First Amendment right. It is well-established [sic.] that the First Amendment does not protect the right to advertise illegal activity….

“[T]he speech in which plaintiff wishes to engage is misleading because it falsely portrays the image that Internet gambling is legal….

“Because plaintiff’s speech concerns misleading information and illegal activities, it does not fall within speech that is protected by the First Amendment….

“By targeting and punishing advertisers who utilize this type of information, the government reaches its goal of deterring this illegal activity. Thus, the Court finds that the Central Hudson test… has been satisfied. Therefore, the Court finds that, even if the plaintiff has standing to bring this action, the plaintiff has no claim for a First Amendment violation.”

[/ QUOTE ]

http://www.gambling-law-us.com/Articles-Notes/advertising-online-casinos.htm

[Anadrol 50]

There was a guy in NJ (Ithink Morristown) that was nailed for having an affilliate website. I will post the link when I find it.

[Benjamin]

[ QUOTE ]
Is anyone aware of any legal action taken against a US Citizen for operating an online poker affiliate business?

[/ QUOTE ]

I'd be very wary of running an affiliate business out of the US. Far more likely to be prosecuted than a simple online player, IMO.

B.

[pokerduker]

Thanks Benjamin. While I agree that it seems more likely (like going after the drug dealers rather than the casual drug users), I am still curious if any 'one man show' poker affiliates have been targeted. Earlier in the thread examples including the Travel Channel and Casino City were cited. What about the average affiliate who makes 1k-20k a month? PartyRiches is full of them. I'm not going to ask how many of them are located in the US but it seems as if most affiliates are.

[koffeliane]

Is it any difference running it from the US and having US hosting/server etc., and having it off shore?

[pokerduker]

Good question. I may be completely wrong, but I have a feeling a large percentage of online poker affiliates are not offshore. I would be curious in any legal action taken against affiliates on- or offshore though. While I 'hope' there is virtually no precendent for this, if there are a good number of cases I was hoping some of the affiliates who were pursued could reply to this.

[Red Lion]

Can Morgant post in this thread?

[Inthacup]

Tim,

Just curious, why are you specifically asking Morgant to post in this thread?

Cup

[emptyshell]

One person affiliate busted:

http://www.gambling911.com/030606Fnews.html

In a first of its kind case, a Morristown, New Jersey resident, Nicholas Drakos, was sentenced this week before Judge Salem Vincent Ahto, accused of promoting gambling through his website International Net Casino and other peripheral offences.

Drakos was convicted and must serve 90 days hard labor chopping concrete slabs in Newark's Central Ward. Should he survive, Drakos still faces three years probation.

....

Sites like Gambling911.com adhere to the strictest of policies when it comes to the promotion of online gambling operations, most important being we do not engage in any type of affiliate or partnership deals.