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Google, Yahoo and Microsoft ante up $31.5 million in fines for promoting online gambling

Posted in News (December 20, 2007 at 11:14 pm)

If you operate a web-based business in the United States that shows advertising and haven’t gotten the stern message about online gambling ads, you might want to read this post carefully.

Microsoft took the biggest hit from the justice department for promoting online gambling between 1997 and 2007, having to pay $21 million, followed by Yahoo who’s penalty was $7.5 million and finally Google with $3 million.

via ABC News:

“These sums add to the over $40 million in forfeitures and back taxes this office has already recovered in recent years from operators of these remote-control illegal gambling enterprises,” U.S. Attorney Catherine Hanaway said in a statement.

Even cursory Hmm readers already know I think the government is missing a huge opportunity with online gambling, on a fool’s errand going after recreational gambling in people’s homes and that internet gambling will be legalized in the United States at some point in the future. But in the present fellow US citizens, and it disturbs me to write this, it is not a good idea to be putting up internet gambling advertising on your websites or doing any gambling online yourself.

Washington HB 1243

Washington State House Bill 1243
If you live in Washington state where gambling online is a class C felony, you might also be interested in this comment which talks about proposed Washington State House Bill 1243 which seeks:

to quash the felony charge language in last year’s legislation addressing in-home internet gambling.

Being that was back in February 2007, I checked up on the progress of HB 1243 which, if passed, will provide legal defense for those adults who gamble online in their home for “recreational purposes.” The bill further defines (PDF) that as:

… for the defendent’s own enjoyment and not as part of an enterprise that derives income from operating an internet web site that transmits or receives gambling information.

Sadly, it appears that the bill is languishing, still (anybody got an update?) awaiting a hearing in the House Commerce and Labor Committee. How is it that the bill to make this a class C felony got passed in less than six months and the bill to defend what people do for recreation has taken 11 months and gone nowhere? Punish fast, defend slow, ain’t politics grand? Oh, and let’s not forget that shortly after passing this law to punish recreational online gambling, they voted to expand tribal gambling in our state.

Is your state sending mixed message on gambling like Washington state?

The war on our home soil against internet gambling must end. It’s a fruitless battle that should be redirected into legalizing and taxing the proceeds. Let’s use this money to improve our schools, reduce the debt, enhance the roads, bulk up the problem gambling services (remember, there are already legal gambling on indian casinos and state sponsored lotteries). I may not be interested in playing poker online personally, but I don’t believe in preventing other adults from doing so. I can see why the indian reservations and those who stand to lose money (or political support?) from gambling in this state are against this, but don’t see why any reasonable thinking adults are in opposition.

I’m sure somebody will mention the social ills of gambling, let’s put that violin away. We’ve already got legalized gambling here and getting rid of all the advertising for online gambling while leaving the billboards for legal terrestrial gambling isn’t going to help the social problems.

…more

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