Reply from Canada

From: IGC- Keith Furlong
Sent: Friday, April 23, 2004 11:05 AM
Subject: Response: Computer Q&A: Search engines act to thwart online gambling

Dear Mr. Radin:

Regarding your recent story on online gaming, advertising and the World Trade Organization (WTO), http://www.post-gazette.com/pg/04113/304329.stm, we would like to add a voice to the idea of legalizing, regulating and taxing this form of gambling. Since our founding in 1996, the Interactive Gaming Council has tried to persuade governments worldwide to license and regulate online gambling.

Practically speaking, the ruling is not expected to have a major impact. For one thing, the U.S. appeal will drag the case out. Ultimately, Antigua would have the right to impose retaliatory trade sanctions against the U.S. Is there more at stake, however, than U.S. policies toward online gaming? Will the U.S. move to blatantly disregard decisions with regard to international trade when the decisions do not suit Washington?

Have we forgotten that Gaming is nearly omnipresent in the U.S. -- from local convenience stores that sell lottery tickets, to racetracks and bingo halls, to video lottery terminals, to riverboat casinos, to Native American casinos and the mega-resorts of Las Vegas and Atlantic City? Casino gaming is legal, and successfully regulated and taxed, in many states. State governments also make millions from their own gambling businesses, the lotteries. Yet, when this otherwise accepted form of entertainment moves to the Internet, gaming opponents and prosecutors attack it.

While many lawyers view the threat of criminal charges for marketing and advertising companies as a scare tactic, it is correct that the tactic has been successful. Two of the U.S.’s largest media companies, Clear Channel Communications and Infinity Broadcasting, were quick to pull all advertising of online casinos. And, as you mention, Yahoo and Google have pulled similar advertising based on the threats. It is apparently easier for large media companies to pull online gaming advertising than face a challenge from the DoJ.

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 favour 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.

Thank you for your time,

Keith

Keith Furlong

Deputy Director

Interactive Gaming Council

Suite 175, 2906 West Broadway
Vancouver, BC V6K 2G8
Canada
www.igcouncil.org