Gambling Ads Cost Search Engines In Court

By David A. Utter - Wed, 12/19/2007 - 2:35pm.

Feds save America from online wagering

Google, Yahoo, and Microsoft all settled charges with the US Attorney's office in St. Louis over their display of gambling ads online.

The trio of major Internet players got slapped for permitting ads for gambling to appear in their advertising networks. They will pay $31.5 million collectively to settle charges with the federal government.

A KMOV report said Yahoo, Microsoft, and Google took ads for sports wagering and other online gambling. Unlike places like Canada and the UK, Internet gambling is a federal offense in the US, horse betting being the only exception.

The report said none of the three companies will have to admit wrongdoing. They will, however, fork over millions to the feds, and in the case of Microsoft and Yahoo, pay additional penalties:

Microsoft agreed to pay 4.5 million dollars, to provide 7.5 million dollars to the International Center for Missing and Exploited Children, and to provide 9 million dollars in public service advertising.
Yahoo forfeits 3 million dollars and will provide 4.5 million dollars in public service ads.
Google agrees to pay 3 million dollars.

US law about online gambling has been a sticking point outside the country. The World Trade Organization considers the restriction illegal, and several countries have sought redress over it.

News Tags: Search, Advertising, Legal, Online gambling

About the author:
David Utter is a staff writer for WebProNews covering technology and business. Follow me on Twitter, and you can reach me via email at dutter @ webpronews dot com. Why not Mixx or Sphinn this article while you're here?

Comments

Submitted by Dan The Man (WPN reader) on Thu, 12/20/2007 - 6:49pm.

Be Correct in reporting

Internet gambling is NOT illegal in the U.S.A. Gambling is controlled by states, not the federal government. The 2006 Congress led by Bill Frist, in a vain attempt to keep a Republican majority, attached an amendment to the war funding bill, which made it illegal for banks to transfer money to gambling web sites. Using this obscure authority, the Bush justice department has used gestapo tactics to bully any company, agency, or person who wants to gamble online.

Submitted by Norman CI (WPN reader) on Thu, 12/20/2007 - 5:40pm.

US Gambling laws

I was born a British citizen, although I don't live there now. Gambling is legal in the UK, in fact there are "betting shops" on most high streets. One would think the streets of England would be littered with bankrupt derelicts who had frittered away their last penny on gambling. Of course NOTHING LIKE THAT HAPPENS. Meanwhile, in good old Florida, retired grandfathers having a penny game of poker in their condos are hauled away by the police. What a joke!

Submitted by Anthony McCain (WPN reader) on Thu, 12/20/2007 - 1:12pm.

What a joke!

The whole on online gambling (or even the advertising of it) ban is totally unconstitutional. I'm not one of these liberal nuts you here all of the time but come on, enough is enough! The federal and state governments are allowed to take the last dollar of some 80 year old woman on social security standing in line to purchase a scratch-off ticket but I cannot play a hand of poker, with the same money that I earn and pay TAXES on??? This whole thing has millions of people upset!

Submitted by Allen Taylor (WPN reader) on Wed, 12/19/2007 - 3:30pm.

It's a sticking point in the U.S. as well

The whole story about how this horrendous law came to pass is a terrible testimony to the state of U.S. politics. Not only does it violate treaties we have made with other countries, it also violates the civil right of every U.S. citizen to spend their own money in ways of their choosing. I believe we have entered an age when multinational corporations have no reason to respect intra-national laws. If civil rights is to survive it will have to be because enough people worldwide demand them. We can start with the U.S. surreptitious gambling laws.

Submitted by John (WPN reader) on Thu, 12/20/2007 - 10:30am.

Right!

Allen, you are so right. I look further into this and similar issues, and do not like what I see. The problem with repealing this (or any other law) that the people do not want is that overturning it makes the authors and supporters look bad. And they fear to look bad before a small and very vocal minority. I think of them as "the church grannies". Looking bad makes them open for attack in the polls. In other words, the will of the people is subservient to the vanity and private political aspirations of a small group of (mostly) men without the courage to do their sworn duty... act upon the will of the people they supposedly serve. Just MHO.

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