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US Attorney Targets Ads for Internet Gambling; California Fax Law Delayed Again

Media Company That Advertised Internet Gambling Settles with U.S. Attorney; Agrees to Pay $7.2 Million
The U.S. Attorney for the Eastern District of Missouri announced a settlement with Vulcan Sports Media, Inc., doing business as The Sporting News, to resolve charges of aiding and abetting illegal gambling by accepting fees to advertise and promote Internet gambling businesses. According to the U.S. Attorney, “a commercial gambling business where bets or wagers are transmitted in interstate or foreign commerce is illegal under federal law, and that includes Internet communications.”

The Sporting News agreed to pay a lump sum of $4.2 million to settle the charges and agreed to spend an additional $3 million over three years on a public service advertising campaign designed to inform the public about illegal Internet gambling. This settlement is the latest development in the Justice Department’s three year investigation into magazines, web sites, search engines and other media companies that advertise Internet gambling enterprises.

Enforcement of California Fax Law Delayed Again
A federal court in California hearing a challenge to California’s new commercial fax law, which was supposed to take effect January 1, 2006, has delayed enforcement of the law until February 27, 2006. The California law does not contain an established business relationship exemption, and the law purportedly applies to interstate and intrastate faxes. (Please see our October 2005December 2005, and January 2006 alerts on the federal and California commercial fax laws.)


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