Microsoft , google , yahoo , have to pay 32 million for gambling ads

[the27offsuit.com]

Just saw on cnbc , judge ordered the big 3 to pay a total of 32 million for accepting ads from online gambling companies for previous years .

[ResIpsa]

Originally Posted by the27offsuit.com

Just saw on cnbc , judge ordered the big 3 to pay a total of 32 million for accepting ads from online gambling companies for previous years .

anyone have any links for this? I'm not seeing any stories about it yet...

[ResIpsa]

here's the journal article on it if anyone else is interested:

http://online.wsj.com/article/SB1198...googlenews_wsj

[Holyman]

This is some really bad news...

[Bryan]

WOW! That's huge news! I'd imagine they're going to appeal. I'd also imagine they're going to be enforcing their "no online gambling" policy even more now.

The question is... this was for allowing paid advertising correct? And not for simple search results which should never be censored? I just want to clarify this since that WSJ article didn't give much info at all.

Bryan

[Bryan]

Ok. This is the article from CNN and apparently is was a settlement between the companies and the DOJ. This is extremely bad news as it shows the US government is now going after companies and possibly people in the US for what they call "Illegally Promoting Online Gambling".

Here's the story...

DOJ: Microsoft, Yahoo, Google settle over past illegal gambling promotion
December 19, 2007: 05:43 PM EST

SAN FRANCISCO, Dec. 19, 2007 (Thomson Financial delivered by Newstex) -- The Department of Justice said late Wednesday Microsoft (NASDAQ:MSFT) Corp., Google Inc. (NASDAQ:GOOG) , and Yahoo (NASDAQ:YHOO) Inc. have entered into settlements totaling $31.5 million with the government to resolve claims that they promoted illegal gambling.

Microsoft will pay $21 million to resolve claims that between 1997
and June 2007 it received payments for advertising on-line gambling, the government said.

Yahoo will pay $7.5 million and Google $3 million to resolve similar claims.

The government said the settlements involve corporate conduct found in violation of the Federal Wire Wager Act, federal wagering excise tax laws, and various states' statutes and municipal laws prohibiting gambling.

Bryan

[PPP]

There is no appeal because they agreed to pay. In other words, no court convincted them, they just pled out to avoid the hassle, just like Neteller and Paypal and everybody else so far. So basically there is nothing new here... other than the likelihood they will start plicing adwords type stuff better, which is soemthing they have been doing anyway.

[Bryan]

PPP - The one thing I think is new here is the fact that it does show the DOJ is going after US companies or possible anyone who blatantly promotes what they call "illegal online gambling."

I can't remember what the deal was with Paypal, but Neteller wasn't a US corporation and that had a lot more to do with billions going in and out of the US without anyone paying taxes on it. Google, Yahoo and MSN obviously were still paying taxes on that revenue earned and they still went after them.

Bryan

[PPP]

Paypal had nothing to do with taxes, and in fact was Eliot Spitzer in new York's baby, not the US so its different there.

This is very very old news actually. Yahoo and Google stopped taking such adds more than three years ago. Now they accept a fine, without admitting wrongdoing, for that activity.

The DOJ has targeted US companies many times before, the Travel Channel for one, but they sent letters to thousands of places a few years ago saying they could be risking prosecution.

[Jeremy]

When I read the articles a few things stuck out at me. In each one, the "Wire Act" is mentioned..... This was written in 1961. I love how the U.S. government can interpret the 1961 law any way they want. The internet being included in the Wire Act has been a cause of debate ever since the evolution of online gaming.

Also, considering what has transpired in Antigua, does anyone else think the timing of this is just the U.S. trying to flex their tyrannical muscles by fining these huge international companies.

Furthermore, there is no doubt these companies could fight this. However both the DOJ and everyone else realizes that it is easier just to pony up the fine, and not have their name involved.

I swear, if the fu**** U.S. government were a publicly traded company in this country, half the idiots running it would be convicted and thrown in jail for multiple offenses.