NONE: Re: ONLINE-ADS>> legal issues for running drawing
Re: ONLINE-ADS>> legal issues for running drawing
Mark (mark_at_intersphere.com)
Wed, 19 Mar 1997 10:54:00 -0500
Ray Taylor <taylor_at_bizbiz.com> wrote:
> 3) Are there any legal issues that we should be aware of, for running
> a drawing (state, US, or other country laws).
Yes. As we've discovered through one of our clients, gambling on the
Internet is an extremely hot issue. In the case of Granite Gate Resorts
vs. the state of Minnesota (Dec. 1996), a judge ruled that the state can
regulate betting (or more importantly, advertising) on the Internet. This
ruling could have a major impact on the development of online gambling and
advertising on the WWW.
At issue was whether or how Minnesota can regulate Internet activity on Web
sites based in other states (keep the term "states" in mind for me).
In the case, the state attorney, Gen. Hubert Humphrey III, tried to block a
Las Vegas company from soliciting gambling business on the Internet from
Minnesota residents. He argued that sports betting on the Internet is
illegal under Minnesota's consumer fraud laws.
The company, Granite Gate Resorts Inc., contended that the state had no
jurisdiction, claiming that the service had not mailed anything or
advertised in Minn. The company site offered computer users betting info.
and promised a provide a service in which people could place bets.
But the state District Judge John Connelly called that argument "not sound
in the age of cyberspace."
The judge wrote:
"Once the defendants place an advertisement on the Internet, that
advertisement is available 24 hours a day, seven days a week, 365 days a
year to any Internet user until the defendants take it off the Internet."
Translation: If the product or service you are advertising on the Internet
is illegal in certain states, those states (at least Minn.) have legal
jurisdiction.
Personally, I believe the ruling will be "over-turned" if Granite Gate
appeals the decision. It's preposterous to think that state governments
can prosecute businesses in other states because their product or service
is illegal in one state and legal within their own.
The problem is that the case will set a precedent for other legal entities
to follow. Until a higher ruling determines Internet advertising legality
from state to state, many more cases such as this will surface which can
affect us, the advertiser.
Would that be a riot (unable to hide the sarcastic tone)?
That the nation that has waved the banner of free speech would charge into
the next millennium waiving the banner of censorship with regards to the
Internet.
It truly concerns me because the specter of "Big Brother" is upon us and my
"Little-Big Brother" could hail from such obscure metro markets as
Meridian, MS (pop: 61,900) depending on whether my advertising is legal
there or not.
***and then the ray of hope****
A way of circumventing this legal obstacle course until our legal system
decides to catch up is to move your servers abroad to a country that allows
for your type of product or service. As in the case of our friend, he
should move his Internet gambling server to place where US law has no
jurisdiction. Many nations in the Caribbean allow for gaming operations to
conduct international wagering (and some of them have T1 lines. :) )
It amuses me that some individuals believe that the US is the "say all"
when it comes to the Internet and Internet advertising laws. What's
problem with having your server in a different country when your dealing
with the Internet?
Answer: None. That's the beauty of the Internet.
We should keep a watchful eye as these issues develop.
This is Mark Farish, Advertising Director, saying "Excelsior!"
Intersphere Communications Ltd.
http://www.intersphere.com/
mark_at_intersphere.com
p: 215.540.8175 f: 215.540.8176
"Suit the action to the word, the word to the action."
-- Shakespeare's Hamlet
