Internet gambling is generally illegal in the US, whether it is based within the country or offshore. In practice, however, it is difficult for enforcement officials to prevent US citizens accessing offshore internet sites, and they have therefore relied on other tactics to counteract the proliferation of gambling sites.
One attempt focused on the methods of paying for the gambling services – seeking to pass legislation that would ban the use of credit cards or any other form of electronic payment for off-shore internet gambling sites.
Another tactic was put into play by the Department of Justice in June last year, when it sent letters to a variety of groups, including the National Association of Broadcasters (NAB) and the Magazine Publishers of America, advising them that individuals and entities publishing adverts for on-line gambling might face prosecution.
Several months later the Justice Department issued subpoenas to a variety of media outlets, internet portals, public relations firms, and other companies, seeking detailed information on the purchase and placement of on-line gambling advertisements.
Following this, some popular internet sites, including Google and Yahoo!, stopped accepting adverts for internet gambling sites.
According to Louisiana-based Casino City, the Justice Department crackdown has hit hard. The Casino City web site claims to be the most popular gaming portal on the web, covering online casinos and sportsbooks, land-based casinos, gaming strategy, and news. The company says the adverts – for sites which it says are legal in the countries in which they are based – form an important part of its revenue.
"The public has the right to see the wealth of information we provide on casinos and sportsbooks, and we have the First Amendment right to advertise on-line gaming on the web to support its free publication," said Casino City CEO Michael Corfman in a statement.
The company has asked a local court for a declaratory judgment that advertising on-line casinos and sportsbooks is constitutionally protected commercial free speech under the First Amendment.
"The NAB Letter and subpoenas," says the complaint, "have created a fear of prosecution within the advertising community resulting in a chilling effect upon the exercise of free speech. On information and belief, as a direct result of the DOJ threats, a number of internet advertising portals based in the United States have ceased to accept advertising of legal casino and sports betting."