The Sporting News fined $7.2 Million

[Inthacup]

The Sporting News has agreed to a $7.2 million settlement with the U.S. government to resolve claims that it promoted illegal Internet and telephone gambling in print, on its Web site and on its radio stations. Ads reportedly ran from early 200 through December 2003, six months after the government sent the publisher a letter warning them that these ads were illegal. The Sporting News disagrees, stating that they stopped running the ads after they were "first notified of the government's position that it is illegal to do so."

In the settlement, The Sporting News paid a $4.2 million fine with the remaining $3 million being spent in the form of public service ads to tell people that gambling over the Internet or phone is illegal, while The Sporting News neither admitted nor denied its legal liability.

The reason I filed this under Affiliate Marketing is because the Casino Affiliate business is so huge. They are prosecuting larger publishers now, but who knows how long it will be before they start to target affiliates earning large sums from referrals.

Catherine L. Hanaway, the United States attorney for the Eastern District of Missouri, said prosecutors compare accepting gambling ads to advertising on behalf of drug dealers and child pornographers. If they are putting gambling ads on the same level as child porn, then you better be damn careful!

Hanaway said the settlement is among several out of her office since 2000 that have generated more than $40 million. Of note:

--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.

They target the easy prey here in the US because the gaming companies themselves are difficult to prosecute because they're located in places like the Dominican Republic, Malaysia, South Africa, Cypress, and Costa Rica.

Hanaway wouldn't say if other sports magazines, radio programs or networks, or Web sites were also under investigation. Time will tell, but I predict we will see the first casino affiliate prosecuted this year.


Story found here

[Mustbeblufin]

It appears this includes poker ads and not sportsbetting/casino. Not good news.

[ReduceTheRake]

Wont the US governemnt come after someone like Cardplayer Magazine first?

[Pokeraddict]

I have read the WTO ruling many times to try and understand it and I'm still not 100% on it but it really reads like the US must legalize it before April 1, face sanctions or outlaw online OTB for horses (the states that offer this seem willing to go to their death fighting a ban on it.)

As that date got closer I figured these type stories would vanish, maybe this is a hint on the next move. Maybe I dont undertand that ruling that was longer then any book ive read since school either.

Have I just misunderstood the ruling? Maybe the government doesnt care and will just trash our trade deficit even more.

[Mustbeblufin]

Or maybe they are trying to get a few extra $$$ before they ok it.

Wishful dreaming :-)

[RakebackStore]

Hopefully a push will be made to separate Poker from casino/sports betting. Since poker is a skill game it should be separated from the word "gambling." I think most of the affiliates here, including myself, are poker affiliates.

[Pokeraddict]

[ QUOTE ]
Hopefully a push will be made to separate Poker from casino/sports betting. Since poker is a skill game it should be separated from the word "gambling." I think most of the affiliates here, including myself, are poker affiliates.

[/ QUOTE ]

Unfortunately since Party Poker, Paradise and surely other big poker rooms down the road are moving to casino games too this will make the "I only offer games of skill" argument less valid.

[smartalecc5]

honestly, whats so bad about gambling?

while we're at it, whats so bad about legalizing marijuana....

[StellarWind]

[ QUOTE ]
with the remaining $3 million being spent in the form of public service ads to tell people that gambling over the Internet or phone is illegal

[/ QUOTE ]
Anyone else find this provision extremely troubling?

The First Amendment does not give unlimited protection to commercial speech. Advertising can be and routinely is restricted. That somebody got fined for running an ad is not great news for the First Amendment but it's hardly a new thing.

But here the Government is compelling a major media outlet to repeat its version of the truth. This is noncommercial speech concerning a matter of public policy. Next time the Washington Post gets in trouble will the Government force them to run editorials supporting the latest war? Destroying credibility is just as damaging to an independent free press as destroying printing presses.

[MicroBob]

Yes. i agree.


Just as i don't think it's appropriate for Philip-Morris to be compelled to produce anti-smoking stuff.


To force them to say something that might not even be their opinion (someone there might actually NOT think that internet-gambling is wrong) is outrageous.


I don't care if people have a problem with me bashing the U.S. I'm going to do it anyway:
The government is a bunch of hypocrites and this is just plain wrong.