Casino City Challenges DOJ Ad Policy


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Jun 30, 1998
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BREAKING NEWS: Media Firm Challenges DOJ Ad Policy

An American media company has raised a formal challenge to the legality of the U.S. Justice Department's attempt to suppress advertising for Internet gambling services.

Casino City, Inc., a Louisiana-based company that provides a directory of both Internet and land-based casinos as well as several other informational services on its web-sites, has filed a complaint in the U.S. District Court for the Middle District of Louisiana. The company seeks a declaratory judgment stating that the Department of Justice's application of aiding and abetting charges to advertising for legal overseas companies violates the First Amendment of the United States Constitution.

If successful, Casino City's case would eventually put an end to what many consider a chilling effect that has left many advertisers in the U.S. afraid to place ads for online gambling.

Casino City operates a variety of websites providing gaming information, including, a gaming portal launched in 1995, and one of the most popular such sites on the web today. On its web sites one can find interviews with professional gamblers, advice, expert columns, directories, playing strategies, tips, weekly news publications, and news clips.

The company relies on the sale of I-gaming advertisements for a portion of its revenues and therefore faces a reasonable and imminent threat of prosecution from the Justice Department. It has already experienced direct consequences of the Justice Department's actions.

Michael Corfman, President and CEO of Casino City, explained. "Our parent corporation had partnership plans with A&E Television Networks to promote the Breaking Vegas documentary and associated sweepstakes. Casino City was to be featured on The History Channel website and in 30 national television spots, but they cancelled the agreement after the promotion had already begun. We were told by their marketing agents that A&E felt there was an unacceptable risk it would be viewed as aiding and abetting online gaming since it's only two clicks from our home page to an online gaming site. When you have an FCC license that must be protected to stay in business, you just can't afford to take chances with the Department of Justice. That was the first instance, a few months ago."

He continued, "More recently a major Las Vegas casino wanted to work with our parent corporation on a promotion but their lawyers nixed the arrangement because of our involvement with online gaming. The scare tactics employed by the Department of Justice have clearly had an effect."

Law firm Greenberg Traurig has assembled an impressive team to handle Casino City's case. Barry Richard, the attorney appointed to lead the litigation team, sports an impeccable resume. Barry represented President George W. Bush in the 2000 presidential election litigation and has successfully argued three cases before the U.S. Supreme Court. Named as one of the National Law Journal's Lawyers of the Year in 2001 for his "national reputation for compelling advocacy," Barry has experience in state and federal constitutional law in addition to complex commercial litigation, appellate practice, and government and election law. Barry will be assisted by Laureen Galeoto.

Patrick O'Brien serves as an advisor to both Barry and Casino City. He is an expert in I-gaming law, and has advised and represented major sportsbook and casino operators, transaction processors, media outlets, Internet portals, and both targets and witnesses in several online gaming investigations.

The complete action filed by Casino City and additional information on the case can be found on the web at Link Removed (invalid URL).
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I wondered how long it would take you to try and exploit Joeyl's WOL posting on this to the detriment of eCOGRA, Caruso.

This is obviously a screw-up by Casino City - there is no way that Friedman's crappy outfit would ever pass the eCOGRA inspections.

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