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Major Online U.S. Internet Companies to Pay Millions in Fines and Stop Their Online Gambling AdsMicrosoft, Google and Yahoo are among the companies that have been successfully scared off by the US Department of Justice in its war, which is being directed against online gambling. They are several of the largest of giant U.S. Internet companies that have been intimidated by the threat of having to millions in fines for advertising online gambling sites and which have therefore ceased carrying online gambling advertising. Settlements were reached with the companies which were recently made known by the US Attorney's office in St. Louis. The involved is believed to be some $31.5 million. This was announced Wednesday in an announcement that stated that the involved companies neither denied nor admitted to the charges of the federal prosecutors that their online advertising which has been going on for over a decade has either aided or abetted a crime, that crime being online gambling. According Catherine Hanaway, the U.S. Attorney involved in the case, this settlement brings to a close years of investigative work combined with 12 to 17 months of negotiations with the companies and the part of federal agencies. It also brings to $70 million the total for settlements relating to Internet gambling through the St. Louis office. According to an article in the St. Louis Dispatch, a specialty of Ms. Hanaways’ office is the legal prosecution of online gambling activities. For example, it was the St. Louis office of the U.S. Department of Justice that recently reached a settlement with online sports book site BetOnSports. This site was once run by one of the largest online gaming companies but Hanaway’s efforts have closed it down and left its executives under arrest awaiting trial. As a part of the final agreement, Google will pay $3 million in cash. Microsoft will be paying $4.5 million to the U.S. government and an additional $7.5 million to the International Centre for Missing and Exploited Children. Along with this they will be placing $9 million into a three-year public service ad campaign which is directed at informing users of the illegality of online gambling. Finally, Yahoo! will be paying a fine of $3 million and at the same time will be running their own $4.5 million, three-year ad campaign. Back to News Archive - December 2007 |
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