US Government aims for Online Casino

Monday July 17, 2006

Lately the US Government has been waging a campaign to make online gambling unlawful. They aimed for one online casino in order to put an example and perhaps send a message to other online casinos. The US government states it is acting within the extent of the law but some feel this is an act of threats.

In early April, U.S. marshals seized $3.2 million from Discovery Communications, the television and media company, in a hostile attempt to crack down on a new target, Internet gambling.

The money at first belonged to Tropical Paradise, a Costa Rica-based Internet casino operation, which in October compensated Discovery for television spots to publicize an online poker room, Paradise Poker. Due to court documents, the government detained the money and told Discovery, which is based in Silver Spring, Md., that it could be party to an unlawful activity by broadcasting such advertisements.

Federal prosecutors contend that online gambling venues are unlawful, but the offshore casinos fall exterior their jurisdiction. So for nearly a year, the government has been trying to restrain the sites' activities by investigating and pressuring American companies that supply services to offshore gambling sites on the theory that they are "aiding and abetting" the processes.

Till now, the attempt has largely occupied looking for information from American companies, including major broadcasters, Web portals and industry consultants. The value of money considerably raises the government's attack.

The move has raised strong criticism from First Amendment experts, media industry administratives and people involved with offshore casinos.

Rodney A. Smolla, dean of the University of Richmond School of Law said "This is not drug money or terrorist money," and he continues "The fact it is being treated as such shows a crusader's zeal against offshore gambling."

The probable message being sent, legal experts said, is that any American company that does business with an offshore casino? including software makers and consultants ? could be in risk of having advances from that business seized.

Lawrence Walters, a lawyer who works with offshore Internet casinos, as well as software companies that do business with the casinos said "This is a strategy of intimidating anybody who is in the chain of commerce,"