INTERNATIONAL LAW, THE USA AND ONLINE GAMBLING

31 August 2007

An expert look at justifications for the recent behaviour of US enforcement officials


The K.L. Gates website published a detailed professional examiniation of international law and US powers recently at http://www.klgates.com/newsstand/Detail.aspx?publication=4008. Given recent online gambling arrests and actions by the US Department of Justice over the past year, it makes informative reading.

The article goes into considerable detail and is authored by some sharp legal minds who examine events like the arrest and detention of BetonSports CEO David Carruthers and others, extradition powers and the criteria on which international law can be applied. Because its focus is on Internet gambling legislation like the Wire Act, it is an especially interesting study.

The authors come to the following conclusion:

"The DOJ's interpretation of the Wire Act and the arrests of foreign nationals at U.S. airports have not discouraged all foreign Internet-gaming entities from offering Internet wagering opportunities to individuals located in the U.S. They are presumably motivated by the money that U.S.-based bettors spend.

"Prior to June 2006, many may never have thought that a U.S. federal court could assert subject matter jurisdiction over a criminal action against them, or be able to obtain personal jurisdiction over them or their owners, officers, or directors. That mode of thinking has been modified with the indictment of BetonSports and its now-former CEO.

"The DOJ has also demonstrated that it is willing to arrest non-U.S. citizens who are owners, officers, or directors of Internet-gaming entities if they travel to or through the U.S. The law with respect to jurisdiction in these situations is not settled, and there are arguments that can be made in specific situations as to why subject matter or personal jurisdiction does not exist. But, at this time, the risk of arrest and detention is real."

Bottom line for online gambling executives - steer well clear of the United States in your travels! But then you knew that, right?

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