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Old 09-08-2004, 02:34 PM   #1
dominique
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Default Casino City Files Suit Against U.S. Department of Justice

http://online.casinocity.com/FirstAmendment/

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Casino City Files Suit Against U.S. Department of Justice to Establish its First Amendment Right to Advertise Online Casinos and Sportsbooks


BATON ROUGE, Lousiana, August 9, 2004 - Casino City, Inc. today filed a complaint against the U.S. Department of Justice in the U.S. District Court for the Middle District of Louisiana. The complaint seeks a declaratory judgment that advertising online casinos and sportsbooks is constitutionally protected commercial free speech under the First Amendment of the United States.
In June of 2003 the Department of Justice sent letters to a variety of organizations including the National Association of Broadcasters, the Magazine Publishers of America, the Independent Press Association, and the National Newspaper Association. The letters requested that the organizations warn their members that individuals accepting such advertisements might face prosecution.

Several months later the Justice Department issued subpoenas to a variety of media outlets, internet portals, public relations firms, and other companies seeking detailed information on the purchase and placement of online casino and sportsbook advertisements.

The actions of the Department of Justice have been widely reported in the news and have had a chilling effect upon free speech. Popular Internet portals including Google and Yahoo have recently ceased accepting advertising for online casinos and sportsbooks. Many individuals in the online gambling industry view the actions of the DOJ as a form of blackmail based on the belief of a few government officials rather than established legal principals.

There have been factions within the government that have tried unsuccessfully to explicitly outlaw online gaming by citizens for years. In early 2000, Michael Corfman, President and CEO of Casino City, wrote to his congressman, Barney Frank to ask his opinion of prohibiting online gaming. Barney Frank responded "…I would have hoped that the American experience with alcohol in the '20s and '30s would have made my colleagues far more skeptical of new forms of prohibition than they have been. I agree with you that this legislation violates the principle of leaving the Internet unregulated, and violates as well the privacy of millions of Americans. While I do not myself gamble, I think it is a choice that adults should be able to make for themselves, and I do not support restrictions of this sort, especially when it involves a very intrusive form of regulation of the Internet…"

Casino City's parent corporation has been involved in the gaming industry for years. It created the original gaming portal site, CasinoCity.com in 1995. Today the Casino City website is operated by Casino City, Inc., and is now the most popular such site on the web covering online casinos and sportsbooks, land-based casinos, gaming strategy, and news. It is part of a network of websites including Online.CasinoCity.com devoted to online gaming, and www.CasinoCityTimes.com covering gaming news and offering visitors thousands of articles on gaming strategy.

When the Casino City website was first launched, there were no online casinos, and online advertising was virtually nonexistent. Today, however, I-gaming advertisements form an important part of Casino City's revenue. Company CEO Michael Corfman says "The public has the right to see the wealth of information we provide on casinos and sportsbooks, and we have the First Amendment right to advertise online gaming on the web to support its free publication."


This will be very interesting, and it will change the entire industry one way or another. Keep an eye on this one!
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Old 10-08-2004, 07:19 AM   #2
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Default Re: Casino City Files Suit Against U.S. Department of Justice

Well, at least we will soon have an answer to all of our questions

That's either a good or a bad thing, depending on the verdict. This lawsuit will have a MAJOR impact on the market in the US.
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Old 10-08-2004, 03:26 PM   #3
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Default Re: Casino City Files Suit Against U.S. Department of Justice

Nothing is ever certain, but we are as confident as it is possible to be about the outcome of this case.

The lawyer that is representing us in this case is Barry Richard. Barry is an extremely well respected constitutional law attorney who has successfuly argued three cases before the United States Supreme Court. His most public case was the 2000 presidential election litigation where he succesfully represented President George W. Bush, winning him the election.

If you would like to see more details, or would like to sign-up to receive news alerts from us as the case develops, just visit Online.CasinoCity.com/FirstAmendment

Michael Corfman, President & CEO, Casino City, Inc.
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Old 10-08-2004, 03:59 PM   #4
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Default Re: Casino City Files Suit Against U.S. Department of Justice

I hope you're right

If your company wins this case, I may need to send you a commission!

Blackjackguy
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Old 10-08-2004, 04:12 PM   #5
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Default Re: Casino City Files Suit Against U.S. Department of Justice

If you are game Casino City, I'd be curious to hear why sportsbook advertising was so specifically included in the lawsuit. I would think it makes what should have been a slam dunk into something no better than 50/50.
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Old 10-08-2004, 05:52 PM   #6
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Default Re: Casino City Files Suit Against U.S. Department of Justice

Our legal counsel does not believe that sports betting has a negative effect on the First Amendment arguments. The legality of sports betting is certainly more questionable, but it is not necessary for something to be legal for commercial free speech related to it to be constitutionally protected. Also, we are taking this action primarily as a web portal site that has a worldwide audience. If we were specifically targeting US citizens that could pose complications, but that is not the case - we target a worldwise audience. We also include gaming activities that are definitely legal in the US. For example, if you visit our site, and look for online gaming in the US jurisdiction, you will find that there are a couple web site we list that allow betting on horse racing, which is definitely legal for citizens in many states.

In our case, we are a Louisiana corporation with our advertising servers located in the state of Lousiana. Louisiana state law outlaws at least some types of online gaming, but also specifically says that it is legal to advertise such gaming. Thus our advertising activities are explicitly permitted under state law - for both casinos and sportsbooks. The fact that we are located in the jurisdiction of the 5th circuit court also means that we have a circuit court ruling that the wire act does not apply to casino games. The same is not true of sportsbooks, but then our case is not dependent on the legality of the activity. Rather it is based entirely on commercial free speech considerations guaranteed under the First Amendment to the US Constitution.

Bottom line is that we firmly believe our First Amendment case is not weakened by including sportsbooks. Further, as a company we want to be permitted to advertise both. I also feel the distinction is pretty stupid anyway, so I am much happier with the idea of helping to remove the distinction at least with respect to web advertising.
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Old 10-08-2004, 06:36 PM   #7
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Default Re: Casino City Files Suit Against U.S. Department of Justice

Because of the implications involved further questions and comments should be made in the main section of the forums, in my opinion. A greater audience reads those posts.
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Old 10-08-2004, 09:03 PM   #8
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Default Re: Casino City Files Suit Against U.S. Department of Justice

Thanks for the answer.
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Old 11-08-2004, 03:59 AM   #9
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Default Re: Casino City Files Suit Against U.S. Department of Justice

GG makes a sound point - this case is of interest to everyone involved in online gambling, and particularly to the folks in the US who are effectively having their rights usurped by these intimidatory DoJ tactics. Kudos to CC for having the balls to stand up and fight the issue.

Although this case will give rise to widespread comment and reportage, I hope that Casino City keeps the fora informed on the progress of the case, too - for the reasons above.
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Old 11-08-2004, 04:27 AM   #10
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Default Re: Casino City Files Suit Against U.S. Department of Justice

Best of luck, Michael - I have every confidence that you are well prepared for this case.
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