Clear Channel part of probe into offshore gaming ads
SAN ANTONIO - Clear Channel Communications Inc. and a number of media companies have been issued subpoenas as a part of a probe into advertising by illegal Internet gaming sites.
The San Antonio-based radio giant received the subpoena in September from federal prosecutors in St. Louis seeking information on commercial advertising aired on behalf of Web-based gambling businesses, including sports bookmaking and casino-style gaming, that are based in other countries.
Clear Channel, which said it is cooperating with federal officials, disclosed information about the subpoena in filings with the Securities and Exchange Commission.
Lawrence Walters, an attorney who represents offshore Internet gambling businesses, told the San Antonio Express-News that the Department of Justice issued several subpoenas that targeted Web sites, radio and TV broadcasters, magazines, newspapers and others.
The subpoenas request all records involving ads by Internet gaming establishments dating to 1997, said Walters, who has received a copy of the subpoena from one of his clients.
He said the Justice Department also sent a warning letter to major radio networks advising them of the legal risks of accepting Internet gambling ads.
Gambling on the Internet is illegal in the United States under a 1960s law that prohibits using a "wire connection facility" to place a bet across state lines.
Despite U.S. restrictions, online gaming revenue topped $6 billion last year and is projected to reach $7.6 billion this year, according to Christiansen Capital Advisors LLC.
A Congressional report estimates there are more than 1,500 Web-based gaming sites. While virtually all sites operate from computer servers based abroad, as much as 70 percent of Internet wagers come from the United States, according to the report.
www.miami.com
SAN ANTONIO - Clear Channel Communications Inc. and a number of media companies have been issued subpoenas as a part of a probe into advertising by illegal Internet gaming sites.
The San Antonio-based radio giant received the subpoena in September from federal prosecutors in St. Louis seeking information on commercial advertising aired on behalf of Web-based gambling businesses, including sports bookmaking and casino-style gaming, that are based in other countries.
Clear Channel, which said it is cooperating with federal officials, disclosed information about the subpoena in filings with the Securities and Exchange Commission.
Lawrence Walters, an attorney who represents offshore Internet gambling businesses, told the San Antonio Express-News that the Department of Justice issued several subpoenas that targeted Web sites, radio and TV broadcasters, magazines, newspapers and others.
The subpoenas request all records involving ads by Internet gaming establishments dating to 1997, said Walters, who has received a copy of the subpoena from one of his clients.
He said the Justice Department also sent a warning letter to major radio networks advising them of the legal risks of accepting Internet gambling ads.
Gambling on the Internet is illegal in the United States under a 1960s law that prohibits using a "wire connection facility" to place a bet across state lines.
Despite U.S. restrictions, online gaming revenue topped $6 billion last year and is projected to reach $7.6 billion this year, according to Christiansen Capital Advisors LLC.
A Congressional report estimates there are more than 1,500 Web-based gaming sites. While virtually all sites operate from computer servers based abroad, as much as 70 percent of Internet wagers come from the United States, according to the report.
www.miami.com
