"Free Speech for Online Casino Ads is basis of New Lawsuit Claims"

At what looks like a first step in its continuing battle against the online gambling industry, the United States Department of Justice has begun a grand jury investigation into the attempts of American media companies, this including major Web search engines, at publishing or broadcasting advertisements for offshore casinos. Online gambling is in violation of official U.S. Government policy. That policy maintains that such offshore operations are illegal. The Department of Justice prosecutors are arguing that since offshore gambling operations are considered as being illegal, advertisements for these operations most be illegal as well.

Since it has not yet been clarified that federal law prohibits all forms of online gambling, there are some legal experts who take issue with this. Arguments however, noting that it has, make the question of legality regarding the advertisements mute. Even if online gambling was clearly illegal, with reference to the constitutional right to commercial speech, some experts are arguing that the right to advertise online gambling sites is clearly protected.

Based on this last argument Casinos City Inc., which operates online Casinos directory, CasinosCity.com, was prompted to file a lawsuit charging that the U.S. Department of Justice is in violation of constitutionally protected free speech. According to lawyers representing Casinos City, the DOJ is in violation of the right to free speech when it threatens American publishers with criminal penalties if they air, display, or print advertisements for gambling websites.

Casinos City Inc, in its lawsuit, filed August 9 th, requested that the court issue a declaratory ruling that online casino advertisements are constitutionally protected free speech. Casinos City, which is based in Baton Rouge, La, derives its profits from its advertisements for offshore casinos. The casinos advertised are licensed and completely legal overseas, even though they are not legal or licensed within the United States.

Barry Richards, a lawyer for Casinos City, who also represented President Bush before the Florida Supreme Court during the 2000 election disagreement, said that advertisements for offshore casinos merit the same lawful protection that is granted advertisements in a national magazine for a casino in Las Vegas. As an example, in spite of the fact that Las Vegas casinos are not licensed to operate in California, advertisements in California for Las Vegas casinos are still legal.

There is no question that offshore casinos are monitoring the lawsuit closely. Without question the results will have important consequences on their businesses. At least half of the Internet gambling sites customers are drawn from the United States, and their ability or inability to advertise in the United States will seriously affect their ability to acquire more customers and hold on to their existing customers. Other media companies currently advertising offshore casinos or taking into consideration doing so will also be affected by the ruling in a serious way. At the present there are already several major media outlets, which are refusing to advertise offshore casinos. This includes Infinity Broadcasting, the radio giants Clear Channel Communications and Discovery Networks of cable television, all of whom are no longer receiving advertising from offshore gambling concerns.