US sends out subpoenas
Reed Holmes
Media outlets across America are being subpoenaed by the U.S. Department of Justice to hand over all information related to online gaming advertisers dating back to 1997.
"They're going after everybody. It's pretty broad," said law professor and Internet gambling expert Nelson Rose. "It looks like they're going after every publication that took Internet gambling ads, even if they're no longer taking them, like Gambling Times."
It appears the subpoena is targeting websites, newspaper and magazine publishers as well as radio and TV broadcasters. The subpoenas are apparently a part of a grand jury investigation that's being conducted by the U.S. Attorney's Office in the Eastern District of Missouri.
Because grand jury investigations are ultra-secretive, little information is known about the nature of the investigation. However, Rose said the U.S. Attorney is not necessarily going after the companies who are being subpoenaed.
"It doesn't mean that these people are targets, but they could be," said Rose, who has obtained a copy of the subpoena. "I don't know if they're doing this mainly to scare people or they're going to try to make some cases."
If the goal is to scare people, the subpoenas have already had an effect. Some radio broadcasters have reportedly dropped offshore sportsbook ads, as have a number of sports gambling-related websites.
"I know that a couple - Don Best and Jim Fiest - who have taken sportsbook ads completely off (their sites)," said Pete Fiutak, editor of Collegefootballnews.com (CFN). "I don't think we're going to do that quite yet."
CFN was one of the websites who was served a subpoena regarding its sportsbook advertisers. The subpoena is seeking information only; CFN was not ordered to take its sporstbook ads down.
"We're just going to comply in every way and do whatever they want and go from there," said Fiutak.
Besides scaring people, the U.S. Attorney could also be attempting to build a case that businesses and individuals who accept and run online casino and sportsbook ads are aiding and abetting illegal gambling activities.
The subpoenas have sent shock waves through the online sports gambling industry, particularly among companies based in the United States.
"It's pretty serious," said Rose. "There is an Internet gambling conference that was scheduled for the very beginning of November in Orlando and they just cancelled it because it was basically going to be a lot of lawyers and executives, and the lawyers are having to deal with this rather than go to a conference.
"When you get subpoenas from the U.S. Attorneys and they tell you it's for the grand jury, you've got to take it seriously."
At present, Covers has not received a subpoena to hand over information to the U.S. Attorney. Since Covers is based in Nova Scotia, Canada the likelihood of Covers receiving a subpoena is slim.
"They could do it if they want to, but it's unlikely," said Rose. "When you get into international it gets very complicated and difficult."
Covers contacted the U.S. Attorney's Office in St. Louis but spokesperson Jan Diltz said that she would be unable to comment on any subpoenas related to any grand jury investigation. She also said she would be unable to confirm or deny the existence of any such subpoenas.
"It's a big mystery as to what the actual political agenda is behind all this," said Rob Gillespie, president of BoDog Sportsbook and Casino.
This is not the first time the U.S. Attorney's Office in the Eastern District of Missouri has been involved in an online gambling investigation.
U.S. Attorney Raymond W. Gruender took action against PayPal for processing gambling transactions for customers located in the district between June 2000 and November 2002.
PayPal, which stopped processing online gambling transactions in November 2002, subsequently agreed to pay a $10 million fine.
Reed Holmes
Media outlets across America are being subpoenaed by the U.S. Department of Justice to hand over all information related to online gaming advertisers dating back to 1997.
"They're going after everybody. It's pretty broad," said law professor and Internet gambling expert Nelson Rose. "It looks like they're going after every publication that took Internet gambling ads, even if they're no longer taking them, like Gambling Times."
It appears the subpoena is targeting websites, newspaper and magazine publishers as well as radio and TV broadcasters. The subpoenas are apparently a part of a grand jury investigation that's being conducted by the U.S. Attorney's Office in the Eastern District of Missouri.
Because grand jury investigations are ultra-secretive, little information is known about the nature of the investigation. However, Rose said the U.S. Attorney is not necessarily going after the companies who are being subpoenaed.
"It doesn't mean that these people are targets, but they could be," said Rose, who has obtained a copy of the subpoena. "I don't know if they're doing this mainly to scare people or they're going to try to make some cases."
If the goal is to scare people, the subpoenas have already had an effect. Some radio broadcasters have reportedly dropped offshore sportsbook ads, as have a number of sports gambling-related websites.
"I know that a couple - Don Best and Jim Fiest - who have taken sportsbook ads completely off (their sites)," said Pete Fiutak, editor of Collegefootballnews.com (CFN). "I don't think we're going to do that quite yet."
CFN was one of the websites who was served a subpoena regarding its sportsbook advertisers. The subpoena is seeking information only; CFN was not ordered to take its sporstbook ads down.
"We're just going to comply in every way and do whatever they want and go from there," said Fiutak.
Besides scaring people, the U.S. Attorney could also be attempting to build a case that businesses and individuals who accept and run online casino and sportsbook ads are aiding and abetting illegal gambling activities.
The subpoenas have sent shock waves through the online sports gambling industry, particularly among companies based in the United States.
"It's pretty serious," said Rose. "There is an Internet gambling conference that was scheduled for the very beginning of November in Orlando and they just cancelled it because it was basically going to be a lot of lawyers and executives, and the lawyers are having to deal with this rather than go to a conference.
"When you get subpoenas from the U.S. Attorneys and they tell you it's for the grand jury, you've got to take it seriously."
At present, Covers has not received a subpoena to hand over information to the U.S. Attorney. Since Covers is based in Nova Scotia, Canada the likelihood of Covers receiving a subpoena is slim.
"They could do it if they want to, but it's unlikely," said Rose. "When you get into international it gets very complicated and difficult."
Covers contacted the U.S. Attorney's Office in St. Louis but spokesperson Jan Diltz said that she would be unable to comment on any subpoenas related to any grand jury investigation. She also said she would be unable to confirm or deny the existence of any such subpoenas.
"It's a big mystery as to what the actual political agenda is behind all this," said Rob Gillespie, president of BoDog Sportsbook and Casino.
This is not the first time the U.S. Attorney's Office in the Eastern District of Missouri has been involved in an online gambling investigation.
U.S. Attorney Raymond W. Gruender took action against PayPal for processing gambling transactions for customers located in the district between June 2000 and November 2002.
PayPal, which stopped processing online gambling transactions in November 2002, subsequently agreed to pay a $10 million fine.
