Web Giants to Pay $31M For Displaying Gambling Ads

December 20th, 2007 at 12:00 am

gambling money

"Microsoft, Google and Yahoo agreed Dec. 19 to pay a combined $31.5 million to resolve government claims that they promoted illegal gambling by receiving advertising payments from online sports books, casinos and poker sites between 1997 and June 2007."  –eWeek.com

The internet giants did not put up a fight against the allegations and volunteered to pay.  Microsoft $21 Million, Yahoo – $7.5 Million, and Google – $3 Million.  U.S. Attorney Catherine L. Hanaway of the Eastern District of Missouri led the investigation to the conclusion that the internet companies violated the Federal Wire Wager Act and gambling laws.  It turns out that unregulated commercial gambling is prohibited throughout the states.

Hanaway said in a statement that over $40 Million has been collected in this manner from operators of these illegal remote controlled online gambling sites.  She added, "Honest taxpayers and gambling industry personnel who do follow the law suffer from those who promote illegal online behavior."



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