"Google, Yahoo Lose Bid to Dismiss Gambling Ad Suit"
Two Internet gamblers, Mario Cisneros and Michael Voight, who lost
large sums of money playing at Internet gambling web sites, have brought
a case against Yahoo! Inc., Google Inc., and other Internet search engines
on behalf of the California public. The lawsuit, which concerns advertisements
for online casinos that appear alongside Internet search results, has
brought to the forefront the legal issues surrounding online gambling
sites and the whether search engine companies are allowed to display
advertisements or trademarks for those sites. In the case of Cisneros
and Voight, both men used sponsored links found at search engines or
Web sites to locate the online casinos where they did their gambling
and eventually lost their money.
Yahoo! Inc., Google Inc., Ask Jeeves, and the
ten other Internet search engine companies that are being sued went
to court hoping to persuade the judge to dismiss the lawsuit, but California
state Judge, Richard Kramer from San Francisco, ruled in favor of allowing
the evidence gathering process of the case to continue. “The court gave us a green light
to move forward,” said Ira Rothken, a lawyer for Cisneros and Voight. “Unless
the case is settled it’s extremely likely we’ll go to trial”,
he said.
From the time that Cisneros and Voight filed the lawsuit, most of the
search engine companies have ceased displaying advertisements for online
gambling sites. Prior to that, Rothken pointed out that Yahoo! made as
much as $12.97 each time a person clicked on an ad that directed him
to an illegal Internet gambling web site.
Steve Langdon, a spokesman for Google, which
is based in Mountain View, California, noted that Google doesn’t even permit advertising for
online casinos, saying that the whole case is without merit. Langdon
cited company guidelines that were established prior to when the suit
was even filed that prohibit ads “with the primary purpose of driving
traffic to online gambling sites”.
Colby Zintl, a spokeswoman for the search engine
company, Ask Jeeves, said that the Oakland, California-based search
engine company doesn’t
comment on pending litigation. Spokeswoman for Yahoo!, Joanna
Stevens, did not respond to calls seeking a comment on the case.
If the stock market is any indication, neither Google, Yahoo!, or Ask
Jeeves seem to be suffering from the potential lawsuit looming overhead.
On Monday, Google shares climbed up to $10.68 or 3.8 percent to a record
$290.94 on the Nasdaq. Ask Jeeves shares rose 23 cents to $31.33 and
Yahoo! Shares rose 60 cents to $38.52.
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