Home > News > Gaming Settlement Could Serve as Warning to Adult • Bookmark   • Newsletters   • Register Search Options


Gaming Settlement Could Serve as Warning to Adult

Gaming Settlement Could Serve as Warning to Adult
Get XBIZ News
Dec 27, 2007 5:00 PM PST    Text size: 
LOS ANGELES – Google, Microsoft and Yahoo, three of the biggest companies on the Internet, have agreed to settle a civil case over allegations that the search giants accepted ads for online gambling websites.

The settlement could serve as a warning to adult website operators and affiliates that run banner ads and other advertisements for potentially illegal products and services, making for a poignant reminder that publishers are liable for the content of their websites.

The companies will pay a combined $31.5 million for running the gaming ads in violation of U.S. law and have agreed to cease accepting sports wagering as well as other advertisements for online gambling – a practice they insist they ended several years ago.

According to U.S. Attorney Catherine L. Hanaway, the case, which involved her office, the F.B.I. and the I.R.S., began in 2000, with the settlement being negotiated over the past year.

Hanaway described online gambling, saying, "This is a very profitable business that had a lot of money to spend on marketing."

Google's settlement amount was the lowest, at $3 million, or around one-third of a single day's profit for the search giant.

"While we did not admit any wrongdoing, the Justice Department has advised that online gambling is illegal in the U.S. and ads to promote it are improper," Google spokesman Jon Murchinson said. "Google voluntarily discontinued running such ads, which were a very small part of our AdWords business, in April 2004."

Microsoft was hit hardest, being forced to pay $21 million, including a $4.5 million forfeiture, plus $7.5 million to the International Center for Missing and Exploited Children and a further $9 million to be spent on public service ads aimed at keeping younger users from online gambling websites.

According to Microsoft, which ceased running online gaming ads four years ago, "This agreement reflects our ongoing commitment to online safety. We're hopeful that our educational campaign will stop young people from gambling before they start."

The settlement requires Yahoo to pay $7.5 million, of which $3 million is a forfeiture of ad revenue with the remaining $4.5 million allocated to public service ads that will run over the next three years.

"Yahoo stopped accepting online gambling advertisements years ago," Kelley Benander, a spokeswoman for Yahoo said. "And after the U.S. attorney's office contacted Yahoo with its concerns, we worked cooperatively over several years to reach this settlement."

More ways to get XBIZ News:  RSS Feeds  |  E-Newsletters  |  Desktop Widget  |  Mobile
Looking for porn star news and behind-the-scene videos? Check out XFANZ.com !


Data Privacy Is Tightening Up in the E.U.

Have you begun preparing for GDPR? If you are like most, you haven’t even heard of GDPR, but also if you are like most, it is going to affect your business, starting May 25, 2018. The GDPR, or General... More »

Preventing Legal Problems Before They Start

Dentists typically recommend that a person’s teeth be cleaned every six months and that oral X-rays be taken at least once every year. Internists recommend that a person receive a physical examination... More »

Could Adult Content Be Banned?

Earlier this month, I met with the Free Speech Coalition’s board of directors for our annual review. Despite the headwinds our industry faces, politically and economically, we are, as an organization,... More »
Stay informed of the latest industry developments. Get XBIZ newsletters delivered to your inbox. Subscribe today!
Enter email address:

* To manage existing subscriptions click here.

Submit your press release to
multiple news outlets with 1 click.
Subscribe to RSS news feeds or
add free content to your website.
Access XBIZ news and articles
with your mobile device.
Subscribe to XBIZ World magazine, the industry's leading e-commerce trade publication, delivering in-depth coverage of the online, mobile and ancillary digital markets.


Latin America Adult Business Expo

Jul 10 - Jul 12
Cartagena, Colombia

ANME Founders Show

Jul 16 - Jul 18
Los Angeles Marriott Burbank Airport


Aug 03 - Aug 06
Montreal, Quebec

XBIZ Berlin 2017

Sep 11 - Sep 14
Berlin, Germany
Everyday thousands of business professionals browse XBIZ's industry directory for quality products and services. Not listed yet? Your company could be losing potential new business. Submit your company today!
Use XBIZ RSS feeds to stay informed of the latest industry developments or as a content syndication tool for your website!