Google, Microsoft and Yahoo agree to pay millions in fines for online gambling ads
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The United States Attorney’s Office, Eastern District of Missouri, announced today that they had reached a settlement with major Internet search players Google, Microsoft and Yahoo over DOJ claims that the companies had promoted illegal gambling.
The settlements, which total over $30 million, do not involve any admission of guilt on the charges by the companies, nor do they represent a contesting of the charges, a common arrangement in settlement situations. The charges of aiding and abetting online gambling against the companies stem from the inclusion of gambling-related ads on their websites.
The following is an excerpt from the press release issued by the DOJ:
The Microsoft settlement, totaling $21 million, consists of $4.5 million to the United States and a $7.5 million contribution to the International Center for Missing and Exploited Children (ICMEC) to establish a fund to assist ICMEC with its national and international mission. Additionally, Microsoft Corporation agrees to provide a $9 million online, public service advertising campaign to inform and educate a target audience comprised of college level or younger people that online gambling enterprises are illegal under U.S. law. The educational advertising campaign is to run for three years, beginning in early 2008. This settlement, based on illegal conduct (which Microsoft Corporation neither contests nor admits), resolves claims that between 1997 and June 2007, Microsoft received payments from on-line gambling businesses for advertising on-line gambling.
The Google settlement of $3 million resolves claims, which they also neither contest nor admit, that they received payments from on-line gambling businesses for advertising on-line gambling between 1997 and June 2007. Procuring participants for illegal activity is unlawful under the Federal aiding and abetting statute, 18 U.S.C. Section 2.
The Yahoo! settlement of $7.5 million also resolves claims, which they neither contest nor admit, that they received payments from on-line gambling businesses for advertising on-line gambling between 1997 and December 2007. The company has now forfeited $3 million directly to the United States. Additionally, as part of their settlement agreement, Yahoo! agrees to provide $4.5 million worth of online advertising (valued at $1.5 million per year for three consecutive years) for a public service advertising campaign. The campaign, to begin January 2008, will be designed to inform and educate users that operators and participants in online or telephonic sports bookmaking and casino-type gambling activities doing business in the United States may be subject to arrest and prosecution.
More information is available at http://www.usdoj.gov/usao/moe/
