Last week’s great gambling news was that a major media group had paid $7 million to avoid a Department of Justice confrontation. Our readers could be forgiven for thinking that the threatening tactics adopted by the Department to discourage media from accepting adverts from online casino gambling companies, was a piece of history.

But it is fair to say that the Department's efforts in writing to U.S. media executives to warn them that carrying online gambling advertising may be illegal, has taken a low profile recently. At the International Casino Exhibition in London last week, strong rumors abounded saying that the feisty Casino City chief, Michael Corfman had dropped his company's case against the U.S. Department of Justice. This has been confirmed.

In the summer of 2004, Casino City hired a top legal team and filed an action seeking a ruling from the U.S. court system as to whether certain actions taken by the Department of Justice to discourage online gambling advertisements actually violate the First Amendment of the U.S. Constitution. Now Casino City's President Michael Corfman explains that the overlong period of silence coming from the Justice Department regarding online gambling advertisements played a large role in his decision to discontinue the litigation.

However, the dropping of the action leaves the field clear for further Department of Justice threats without prosecutions which have been so effective in frightening many media companies away from online gambling advertisements in the US.

Posted on: February 5, 2006

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