Summary
The Department of Justice has issued fines totaling $31 million against Microsoft, Yahoo, and Google for displaying ads that promoted internet gambling, which violated some municipal and state laws, and the federal wire wager act. This decision has some interesting considerations.
Analysis
The Department of Justice has issued fines totaling $31 million against Microsoft, Yahoo, and Google for displaying ads that promote internet gambling, which violate some municipal and state laws, and the Federal Wire Wager Act.
There are some interesting considerations in the enforcement of the Federal Wire Wager Act, and the broad enforcement of "various" municipal and state laws on a national level.
On an international level this law is not enforceable. The city of London, for example, has legalized gambling, and has for many years, but you would never know it as residents accept gambling as common knowledge.
On an international level, this ruling will have some benefit to traditional casinos in places such as Atlantic City and Las Vegas. However, it may also be detrimental to the American gambling industries if it prevents advertising of internet gambling offered by New Jersey and Nevada Casinos. The law should be rewritten to apply only to foreign based internet gambling operations and their advertising, as this form of gambling can not be regulated in the USA, and may lead to abuse.
A resident of New Jersey, my family owns a second home in the Atlantic City suburbs. I am not opposed to legalized gambling, if contained within a controlled environment, and I have ventured into the casinos of Atlantic City, and enjoyed the entertaining environment.
Gambling is legitimate business. It is best kept legal, so it may be controlled and watched. It is also a great revenue producer for the states and federal government, which are desperately in need of the tax money. It was Al Capone who said that the gambling and lottery rackets would someday be run by the government, and he was right.
I do not see that individual municipal or state laws can be used to ban advertising on a national level, although I see some logic to partial "regulation" of advertising for gambling, much as one would control advertising for alcoholic beverages. States such as New Jersey, Pennsylvania, New York, Nevada, Mississippi, and Connecticut all have some form of legalized gambling, so why not use their local municipal and state laws to validate the display of domestic internet gambling advertisements? Gambling creates jobs and economy in Atlantic City, Las Vegas, and elsewhere, it is a benefit to the local and national economy.
The religious right wing in a few states has tried to dictate their belief system to the rest of the nation. I find this lack of regard for the regions that do have legalized gambling to be distasteful. Would the "Bible Belt" like it if the northern and western states banned all tobacco products?
Considering the legal issues. There is an issue with the Interstate Commerce Code. Commerce between the states can not be restricted, thus internet gambling advertisements can not legally be restricted between the states, although they may be restricted internationally.
There is also an issue with freedom of the press. If internet gambling advertisements are banned, then how about advertisements for alcoholic beverages, all tobacco related products, or PG, R, and adult rated films and entertainment? One product can not be treated radically different than another product, that could be classified as regional discrimination, as well as a possible violation of freedom of the press, and freedom of speech.
When speaking of the internet, advertising of the adult industries becomes an issue. Adult entertainment now occupies 1/3 of all internet web space and advertising. The adult film industry is larger then the NFL, NHL, MLB ,and NBA combined. Can the USA afford to let a few Bible Belt municipalities force the adult entertainment industry back into the dark ages of the back streets and alleyways.
It is simple favoritism to selectively choose which municipal and state laws will be applied to the nation, while disregarding the laws of other municipalities and states. If you were to choose by economic benefit would not the economies of states as New Jersey, New York, Pennsylvania, Nevada, Connecticut, Mississippi, and others, hold sway over the few states encouraging the ban.
There is a place for the Federal Wire Wager Act when applied consistently, without the bias of the radical right wing. It makes sense to regulate, while permitting, internet gambling advertisements, that they do not target children, gambling addicts, or perhaps are only placed at certain hours. Regulation to assure, while permitting, ethical advertising on a national level is fair, and a good idea, that can also be fairly applied to several other product categories. it would also be a good idea to only ban international gambling advertisements, but to permit domestic advertising. This would permit the government to monitor the gambling establishments, collect taxes, encourage domestic industry, and monitor the advertisements.
However, the complete banning of internet gambling advertisements, on a national level, based on the laws of a few municipalities and states, is biased, and an imposition of the radical right wing into the jurisdictions of those states that permit gambling, and the residents of other states who want to enjoy internet gambling, or a vacation in Atlantic City or Las Vegas.
