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Computer Q&A: Internet gambling ads have their defenders
Thursday, April 29, 2004
By David Radin

In last week's column, I discussed the 1,800 Internet gambling operations that have popped up -- almost exclusively outside the United States and how search engines had taken it upon themselves to deny requests by these offshore gambling Web sites to advertise.

Based on the responses to my column, the people involved in these gambling operations recognize the economic impact. But they don't all agree with me that search engines should be applauded for exercising discretion when accepting ads.

Dave Banks, general manager of Triple Crown Racebook, a Web site operating in Costa Rica, wrote of his specific situation:

We believe that we are conducting a legal business and should be afforded the same rights as other businesses. As far as pulling money out of the economy like drug dealers do, please give me a break. Almost all of my money gets put back into ad dollars in the U.S. Is any offshore business that caters to U.S. customers an illegal business? For example, in many states it is not illegal to make a bet over the Internet. So customers are not doing anything wrong.

Also this "gambling prohibition" is not only affecting gambling sites offshore, but U.S. sites as well. As per my conversation with Overture, a company like The Daily Racing Form would be prohibited from advertising.

Believe me, I would rather be back home in the U.S. than here. It's a [expletive deleted] trying to get good Chinese food, or pastrami at 3 a.m. But we are licensed and legal. We pay our taxes. We even sponsor a basketball team.

Mr. Banks is right. Placing bets online is not illegal in all states. But that doesn't exempt the search engines and media companies from their responsibilities to their shareholders to make prudent business decisions. Search engine ad targeting technology is not perfect. So they inadvertently could run afoul of state statutes if running the advertising.

David Matthews, Web site development manager for Las Vegas Advisor, a newsletter and Web site that provides information to gamblers, addressed the issue and its economic impact on the United States:

It's a real shame that our government is so in the dark on this issue.

While our economy struggles, a huge business thrives off of Americans who gamble online, most of whom are responsible and some of whom even make money doing it (online poker players, bonus hunters).

If America would allow this business then we would have a huge boost to our economy. Online gambling businesses housed in the United States would immediately take over any competition in other countries. People would feel much safer with their money here, both Americans and non-American gamblers.

The U.S. would be able to tax the businesses and also regulate them so that the IRS can track the players as well for tax revenue.

Keith Furlong, deputy director of the Interactive Gaming Council, based in Canada, asks:
What about the First Amendment, commercial speech? I witnessed advertising on your company's Web. What if products advertised on your site suddenly fall out of favor with government attorneys? Who decides what is appropriate for citizens in the land of the free? Rather than dictating that consumers shouldn't play at online casino sites, the government should be looking toward solutions, such as regulation, toward protection of consumers.
Sorry, Mr. Furlong. Federal law mandates equal time in broadcast for political ads. Otherwise, the publication or broadcaster has the right to accept or reject any advertisement at the discretion of its management. This is not a First Amendment issue.

I have placed the full text from these three letters on megabyteminute.com.

First published on April 29, 2004 at 12:00 am
David Radin is a consultant and nationally syndicated radio show host. You can sign up for his tip letter and find an archive of his previous columns at www.MegabyteMinute.com. Mail him your questions at david.pg040429@spamslicer.com.