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US Authorities Conducting Campaign Against Online Gambling Sites

by Glen Shapiro, LawAndTax-News.com, New York

17 March 2004

The United States government, led by US Attorney for the Eastern District of Missouri, Raymond Gruender, has been quietly waging legal war against offshore online gambling operations, the New York Times reported this week.

Although many of the operators of the gambling sites are outside the jurisdiction of the US courts, the NY Times revealed that the campaign being conducted by Mr Gruender centres on the premise that by providing advertising and other support services, US businesses are "aiding and abetting" the overseas firms.

Although no charges have yet been filed, the initiative appears to be having the desired effect, with several media enterprises having stopped running advertisements for the online gambling services in order to avoid potential prosecution.

Some industry observers have suggested that should a prosecution be brought under the auspices of the crackdown, Mr Gruender may find himself on shaky legal ground, arguing that the US firms are within their rights under the First Amendment to carry advertising for the online casinos.

However, opinion is divided on the issue, with other experts suggesting that a case could be made on the grounds that they are profiting from the online gambling sites, which are illegal in the United States.

A comprehensive report on the offshore gambling sector, including details of the regulatory regime in a number of top jurisdictions, is available in the Tax News Reports Shop at http://www.tax-news.com/reportshop 

 

 






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