Gaming Settlement Could Serve as Warning to Adult

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."

Related:  

Copyright © 2026 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Kylie Rocket, Derek Kage Cap AEBN's Top Stars for 3rd Quarter of 2026

AEBN has revealed its most popular performers in straight and gay theaters for the third quarter of 2026.

JustFor.fans Launches Android Version of 'JFF Create' Mobile App

JustFor.fans (JFF) has rolled out an Android-compatible version of its creator management mobile app, JFF Create.

Kink.com Wins Trademark Infringement Case Against Copycat Website

The World Intellectual Property Organization (WIPO) has ruled in favor of Kink.com in a case against a copycat website using an infringing domain.

On-Chain JAV Distribution Platform 'HandSome' Goes Live With Open Beta

Fukuoka tech firm Fidem has officially rolled out an open beta version of HandSome, a new Japanese Adult Video (JAV) content distribution platform built on blockchain technology.

Arcom Investigates MYM Over SREN Compliance

French media regulator Arcom is investigating creator platform MYM to determine whether the site may have violated age assurance rules and/or other requirements of France’s Security and Regulation of the Digital Space (SREN) law.

England, Wales to Enforce 'Extreme' Content Laws Starting Nov. 6

England and Wales will begin enforcing new laws criminalizing depictions of “non-fatal strangulation,” as well as sexual content in which adults portray underage characters, starting Nov. 6, the U.K. Ministry of Justice announced Friday.

Report: UK Film Classification Board to Monitor 'Extreme' Content Online

The U.K. government has tapped the British Board of Film Classification (BBFC) for a pilot program to monitor online pornography for illegal and “extreme” content, as it prepares to enforce new content restrictions, British media outlet Sky News is reporting.

New Federal Report Slams Debanking but Ignores Adult Industry

The Office of the Comptroller of the Currency (OCC) on Wednesday released a report on debanking activities at nine large national banks, but omitted any mention of the adult industry, despite previously identifying it as a sector facing banking discrimination.

EU Court Rejects Stripchat Challenge of Past VLOP Designation

The EU’s General Court on Wednesday ruled against Stripchat in a lawsuit seeking to annul a 2023 European Commission decision designating the site as a “very large online platform” (VLOP) under the Digital Services Act (DSA).

Aylo Case Against Utah VPN Rule on Hold Pending Legislative Changes

A federal court has paused Aylo’s suit over a Utah law making adult websites liable if minors bypass age verification by circumventing geolocation efforts, until the state legislature can meets to potentially amend the statute.

Show More