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Online Casino Ads Case Settled

One of the nation’s oldest sports-centered media companies, The Sporting News, has entered a settlement regarding a law suit filed against it for allegedly advertising online casino sites of online casinos overseas. A settlement of $7.2 million has been made to drop these accusations and close the law suit regarding illegal online casino advertising.

Operated by Vulcan Sports Media, and owned by Paul G. Allen, co-founder of Microsoft, the company has agreed to pay a $4.2 million fine, as well as $3 million for a service campaign educating people about online casino sites and illegal Internet and telephone gambling. This settlement is the latest occurrence in the recent online casino gambling investigation led by the US attorney’s office. The investigation, which began in 2003, has included federal prosecutors reaching agreements with a group of American media companies, accusing them of profiting from running these online gambling ads.

The US attorney’s office is also questioning other media groups to find out all they can about the online casino advertising going on. Regarding the Sporting News settlement, the media source did not admit or deny its legal liability or its participation in the advertising of online casino sites. It is clear that the US is strongly fighting both advertising and operation of online casinos. With the US fully against the legalization and regulation of online gambling, the US attorney’s office is fighting a constant battle against the popularity and booming market of online casinos. What the future holds for the US with regards to legalization of online gambling is still unknown. Only time will tell how the US will face this developing industry.

OCA News Editor

Jenny McKinnley is OCA’s financial correspondent. After spending years on the trading floor in both NY and London, she offers insight from the inside out on world financial news and events.

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