GPWA Times Magazine - Issue 8 - April 2009

GPWA Times | Church of England,BritishMPs urge Google to stop online gambling ads Kentucky appeals court blocks seizure of online gambling domains Webmaster News QUOTABLES WEBMASTER NEWS “I’m delighted that he won but, let’s face it, gambling legislation isn’t going to be on the first or second page of (President) Obama’s to-do list. I think the country will move to regulation but it may take five years, it may take ten years.” — BetFair co-founder Edward Wray “Yes, that is my position. That’s what I will do.” — U.S. Attorney General Eric Holder responding to a question from Senator Jon Kyl (R-AZ) if he would enforce the law against illegal online gambling. Religion and government joined forces in February to chastise Google for its decision to allow gambling advertising. Online gambling firms began advertising with Google in October of 2008 and it was estimated that the Internet search-engine giant could gen- erate between £100 and £300 million for gam- bling companies that purchase sponsored list- ings on the site. But a spokesman for the Church of England said, “As people are facing more financial un- certainty, the fantasy of instant wealth could become particularly attrac- tive and the consequences of losses correspondingly serious.” Just days later, a motion that echoed the church’s words was brought forward by Khalid Mahmood, Labor MP for Perry Barr (Birmingham) who said, “[Regarding] the recent decision of Google to reintroduce online gambling advertisements during a period of economic downturn the house sup- ports the Church of England’s po- sition that the actions of Google risk normalizing gambling in so- ciety.” More than 60 MPs signed the motion calling for Google to reverse its decision “in line with its own obligations on corporate social responsibility” because Google’s promotion of gambling risks “nor- malizing” the activity. But Google’s James Cashmore told the Daily Tele- graph that his company believes that “allowing search ads for gambling in Great Britain is consistent with local business practices.” He added that Google has “taken steps to ensure ... these ads will automati- cally be classified as Non-Family Safe, meaning they will not show on any search where a user has applied the ‘Safe Search filter.’” In a 2-1 decision, the Kentucky Court of Ap- peals ruled in January that the state could not seize 141 online gambling domains because domain names are not gambling devices under Kentucky law. The ruling overturns a decision made by Franklin County Circuit Judge Thomas Wingate in October of 2008 that asserted online gambling domains could be seized by the state because online gam- bling domains constituted illegal gambling devices that were prohibited by Kentucky law. Among the sites targeted by Ken- tucky were PokerStars, Full Tilt Poker, Absolute Poker, Bodog, and Sloto- cash. J. Michael Brown, the secretary of the Ken- tucky Justice and Public Safety Cabinet, announced Kentucky would appeal the decision. “The Commonwealth will continue its action to protect Kentucky citizens from illegal internet gambling operations, and appeal the recent Court of Appeals rul- ing to the state Supreme Court,” Brown said. “The evidence demonstrated that illegal and unregulated activity is oc- curring in Kentucky and that millions of dollars are being lost as a result of that activity, a fact that wasn’t disputed in [the ruling.] We now have two judges who agree with our position, and two who disagree, so the most appropriate step is to make our case to the higher court.” While Kentucky officials were promising an appeal, the online gambling industry was celebrating a rare legal victory. “This is a tremendous victory for Internet free- dom and the rights of Kentucky residents who enjoy playing online poker,” said John Pappas, executive director of the Poker Players Alliance, in response to the decision. “We are pleased that the appeals court has forcefully reversed Judge Wing- ate’s earlier ruling and confirmed many of the arguments that have been raised in opposition to the seizure effort.” Judge Michelle Keller, writing for the majority, indicated the ruling hinged on “whether domain names fall within the statutory definition” of Ken- tucky law. “It stretches credulity to conclude that a series of numbers, or Internet address, can be said to con- stitute a ‘machine or any mechanical or other de- vice…designed and manufactured primarily for use in connection with gambling,’” Keller wrote. “As people are facing more financial uncertainty, the fantasy of instant wealth could become particularly attractive and the consequences of losses correspondingly serious.” — A spokesman for the Church of England in response to Google’s relaxing its policy on gambling advertisements in the UK.