On July 18, we wrote about the arrest of the CEO of BetOnSports, the Internet gambling site, and the indictment of individuals involved with the Company, including representatives of its advertising agencies. Yesterday, the New York Times reported that BetOnSports has stopped taking bets from people in the United States in compliance with the US Court Order banning all such activities. The Times story is here.
Even though BetOnSports has ceased US operations, there are other Internet gambling sites that continue to operate, continue to solicit US citizens to place wagers, and continue to seek to entice broadcasters to run their advertising. We warned our clients of the risks posed by taking such advertising in our bulletin on the subject. As we stated in the bulletin, not only is the Federal government active in enforcing restrictions against such sites, but state governments have enforced their own bans. Given the capitulation of the one of the biggest and best financed of the Internet gambling sites to the US Court order, broadcasters should not be promoting the sites directly, and must very carefully consider the risks of taking any advertising which even indirectly solicits US citizens to patronize these on-line gaming sites.