| | |  | Last Updated: Tuesday, June 19, 2007 |  | | | Online Gambling Firm Suspends Litigation
- Monday, 13 Feb 2006
A case initiated in 2004 by gambling operator Casino City against the U.S. Department of Justice has recently been dropped amidst rumors of a more laissez faire approach toward the advertising of online gambling services. News of Casino City’s decision was leaked at London’s International Gambling Exhibition last week and has now been confirmed by the company’s chief executive Michael Corfman.
Corfman originally began litigation against the U.S. Department of Justice after media executives reported receiving warnings advising that advertising for online gambling firms “may be illegal.” A top legal team was hired on behalf of Casino City in an attempt to prove that the U.S. government’s actions contravened the First Amendment of the U.S. Constitution. Corfman has since confirmed that the legal action has been discontinued, citing the Justice Department’s long period of silence on advertising by online gambling operators as the main reason. However some media companies continue to have misgivings about accepting advertisements from gambling firms.
Recently a large media firm backed down from a confrontation over gambling advertisements with the Justice Department, preferring to pay $7 million in an attempt to avoid litigation. While industry analysts have expressed concern about the heavy handed tactics adopted by the government, few media firms seem willing to test its resolve. Many have been reluctant to accept advertising from online gambling operators targeting U.S. casino players, which could prove problematic for the industry in the future. | |
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