A case initiated in 2004 by gambling operator Casino City against the U.S. Department of Justice has recently been dropped amidst rumors of a more laissez faire approach toward the advertising of online gambling services.

Casino City chief executive Michael Corfman originally began litigation against the U.S. Department of Justice for allegedly violating the First Amendment of the U.S. Constitution. The U.S. government’s tough approach toward online gambling operators running foul of anti-gambling legislation is legendary; however a less severe approach had previously been taken toward the advertising of gambling products and services.
However after media executives reported receiving warnings from the U.S. Department of Justice advising that advertising online gaming “may be illegal” Michael Corfman decided to act. A top legal team was hired on behalf of Casino City in an attempt to prove that the U.S. government’s actions contravened the First Amendment.

Corfman has since confirmed that the legal action has been discontinued, citing the Justice Department’s long period of silence on advertising by online gambling operators as the main reason.

However some media companies continue to have misgivings about accepting advertisements from gambling firms. Last week a large media firm backed down from a confrontation with the Justice Department, preferring to pay $7 million in an attempt to avoid litigation. While industry analysts have expressed concern about the heavy handed tactics adopted by the government, few media firms seem willing to test its resolve. Many have been reluctant to accept advertising from online gambling operators targeting U.S. gamblers, which could prove problematic for the industry in the future.

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