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<channel>
<title>Techdirt. Stories filed under &quot;gambling&quot;</title>
<description>Easily digestible tech news...</description>
<link>http://www.techdirt.com/</link>
<language>en-us</language>
<image><title>Techdirt. Stories filed under &quot;gambling&quot;</title><url>http://www.techdirt.com/images/td-88x31.gif</url><link>http://www.techdirt.com/</link></image>
<item>
<pubDate>Fri, 1 Feb 2013 10:46:39 PST</pubDate>
<title>Copyright Alliance Invents New History (And New Meanings For 'Big' And 'Little') To Condemn Antigua</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20130201/01215421848/copyright-alliance-invents-new-history-new-meanings-big-little-to-condemn-antigua.shtml</link>
<guid>http://www.techdirt.com/articles/20130201/01215421848/copyright-alliance-invents-new-history-new-meanings-big-little-to-condemn-antigua.shtml</guid>
<description><![CDATA[ We recently wrote about how, after a decade-long dispute, Antigua appeared to really be moving ahead with its plan to set up an online site that <a href="http://www.techdirt.com/articles/20130124/16404121782/10-years-later-antigua-may-finally-really-set-up-official-pirate-site-to-get-back-what-us-owes-sanctions.shtml">purposely offered infringing works</a>, violating US copyright law -- and doing so with the authorization from the WTO as a response to the US breaking an existing trade agreement that helped collapse the online gambling industry that was based in Antigua.  We've already noted that the US government (as it's been doing for years) has <a href="http://www.techdirt.com/articles/20130129/11040821818/us-still-warning-antigua-that-it-better-not-set-up-piracy-hub-even-as-wto-gives-approval.shtml">threatened</a> retaliation if Antigua goes forward with the plan, <i>even though</i> the WTO has given it the stamp of approval (and ruled against the US multiple times in this dispute, almost all of which have been ignored by the US, with the US flat out lying at one point and pretending it won).
<br /><br />
And, of course, it's not just the US government upset by this: the big copyright players have started sputtering out angry screeds.  Take, for example, this absolutely laughable historical revisionism from the Copyright Alliance, which <a href="http://copyrightalliance.org/2013/01/antigua_gambit_house_always_wins#.UQrETr_LRCZ" target="_blank">talks about just how "unfair" this whole thing would be</a>, since it impacts third parties.  This may be the most tone deaf statement from copyright maximalists in a long time (and that's saying something, given who we're talking about):
<blockquote><i>
First, it raises a question of fundamental fairness about the appropriateness of punishing an unrelated group for circumstances beyond their control. U.S. copyright owners have found themselves chips in a high-stakes international game with no recourse. In addition, TRIPs obligations implicate many downstream stakeholders -- distributors and licensees, for example -- who rely on stable IP rights to function, so suspension of these obligations would affect many individuals and companies in other sectors and even other countries.
</i></blockquote>
Wait, so suddenly the copyright players are concerned about "fairness" and the "appropriateness of punishing an unrelated group for circumstances beyond their control"?  Really?  So, um, I guess that means they're now against copyright term extension, which did exactly that.  Or  how about the very fact that IP agreements are included in international trade agreements -- which imposed significant and severe punishments on citizens of countries around the globe "for circumstances beyond their control."
<br /><br />
Oh, and now "US copyright owners have found themselves chips in a high-stakes international game with no recourse."  Welcome to the club.  How about the whole of the public of the US and many, many other countries, who have found themselves exactly that: chips in a high-stakes international game with no recourse.  The Big Copyright players, including those who funded and created the Copyright Alliance, have engaged in this game for decades, using the whole international trade game to force copyright maximalism through international trade agreements and then forcing draconian, anti-public laws on countries around the globe.
<br /><br />
So, pardon me if I find it laughable that <i>they</i> of all people suddenly are whining when the shoe is (just slightly) on the other foot. 
<br /><br />
As for those "downstream stakeholders" who rely on "stable IP rights to function"...  So, that must mean that the Copyright Alliance is against changes to copyright law, such as <a href="http://www.techdirt.com/articles/20121231/17144221531/how-supreme-court-helped-stomp-out-public-domain.shtml">pulling works out of the public domain</a>, which totally screwed over "downstream" merchants who were making use of those works.  Oh, wait, they <a href="http://www.copyrightalliance.org/2012/05/golan-v-holder-copyright-restoration#.UQuF-L_LRCY">liked</a> that ruling.  Huh.
<br /><br />
The fact is that the copyright industry has had the run of international trade agreements for a few decades.  For an enlightening exploration of just how the big copyright players completely inserted themselves into international trade agreements, and used them as a key (some would argue <i>the</i> key) strategy for ratcheting up copyright laws around the globe, check out the book <a href="http://books.google.com/books/about/Information_Feudalism.html?id=Pkl7HNzhXgoC" target="_blank"><i>Information Feudalism</i></a> by Peter Drahos and John Braithwaite.  It tells the somewhat horrifying story about how a few powerful corporate interests effectively hijacked the TRIPS and WTO processes to use them to spread ratcheting up copyright and patent laws around the globe.  We've seen that play out over the past few decades, and there's something absolutely ridiculous to see them now complaining when a single tiny WTO ruling goes against their interests.
<br /><br />
Have they no shame?
<br /><br />
And, of course, these same copyright maximalists have been instrumental in a number of international agreements since then that have only served to ramp up copyright rules and enforcement.  Most recently, for example, we've talked about ACTA and TPP -- both of which would punish the public and harm downstream stakeholders, using them as an uninvolved pawn in a high-stakes international trade game with no recourse.  Yet, somehow, the Copyright Alliance and their backers <i>like</i> that... because they're the ones pulling the strings.
<blockquote><i>
Second, application in this situation seems to run counter to the purpose of cross-retaliation. Since the 1990s, Antigua has set itself up as a safe haven for offshore gambling. Licensing of gambling services make up a significant portion of the country&#8217;s revenues. Cross-retaliation as a remedy is, in theory, supposed to provide leverage to smaller, less-developed countries in trade disputes against larger nations. But the Antigua gambling industry is composed of large, international corporations. 
</i></blockquote>
Okay, now this one also makes me laugh.  Notice these two paragraphs quoted one after the other.  In the first one, the Copyright Alliance tries to argue that it's these poor "downstream stakeholders" who are impacted by Antigua's WTO-approved plans.  In other words, "think of the poor little guy."  In the second paragraph, it argues that this is unfair because it really benefits "large, international corporations."
<br /><br />
Uh, guess whose copyrighted works are likely to be sold in this store?  You guess it.  Those large international corporations who funded and created the Copyright Alliance.  It's so incredible dishonest to pretend that this dispute is about big companies in Antigua somehow harming the little guy in the US.
<br /><br />
Really, the copyright maximalists apparently have absolutely no shame in historical revisionism and blatantly dishonest and misleading statements about the situation at hand.<br /><br /><a href="http://www.techdirt.com/articles/20130201/01215421848/copyright-alliance-invents-new-history-new-meanings-big-little-to-condemn-antigua.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130201/01215421848/copyright-alliance-invents-new-history-new-meanings-big-little-to-condemn-antigua.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130201/01215421848/copyright-alliance-invents-new-history-new-meanings-big-little-to-condemn-antigua.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>hoist-on-their-own-petard</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20130201/01215421848</wfw:commentRss>
</item>
<item>
<pubDate>Tue, 8 Jan 2013 05:57:39 PST</pubDate>
<title>Developer Of Bookmaking Software Gets Full Kim Dotcom Treatment For 'Promoting Gambling'</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20130107/11140121596/developer-bookmaking-software-gets-full-kim-dotcom-treatment-promoting-gambling.shtml</link>
<guid>http://www.techdirt.com/articles/20130107/11140121596/developer-bookmaking-software-gets-full-kim-dotcom-treatment-promoting-gambling.shtml</guid>
<description><![CDATA[ The government's war on online gambling is really ridiculous in a variety of ways.  Initially, it was driven by a weird mix of moralist groups, backed by offline casinos who didn't want the competition -- all leading to a bill that effectively (through convoluted means) banned online gambling as a part of a law to <a href="http://www.techdirt.com/articles/20061002/124356.shtml">protect our ports</a>.  The casinos are now <a href="http://www.techdirt.com/articles/20101004/00473111265/big-casinos-may-now-regret-that-they-had-congress-ban-internet-gambling.shtml">regretting</a> their initial support for this law, because they want to get into the online gambling world themselves.  But the law is in place, and US (both federal and state) law enforcement has supported it and related laws with ridiculous fervor; <a href="http://www.techdirt.com/articles/20060907/081800.shtml">arresting</a> execs of off-shore gambling sites and even execs of financial institutions that <a href="http://www.techdirt.com/articles/20070116/075908.shtml">provide payment systems</a> for online gambling sites.  As with the over-aggressive enforcement of copyright law, the Justice Department has also <a href="http://www.techdirt.com/articles/20110415/13475713911/feds-seize-poker-websites-founders-indicted.shtml">seized many websites</a>, sometimes even <a href="http://www.techdirt.com/articles/20120228/22460717908/feds-continue-crackdown-poker-seizing-wrong-bodog-domain.shtml">seizing the wrong websites</a>.
<br /><br />
However, this latest story shows just how ridiculous some of these efforts are, and just how far they can go in creating chilling effects.  It's the story of <a href="http://www.wired.com/threatlevel/2013/01/coder-charged-for-gambling-software/all/" target="_blank">the arrest and criminal charges against Robert Stuart</a>, his wife and his brother-in-law for the work they did for their company, Extension Software.  The company provides infrastructure to companies that do sports bookmaking, but they were careful to only license the software to companies in countries where such things are legal.
<br /><br />
For their troubles they got "the full Kim Dotcom treatment" according to a writeup in Wired:
<blockquote><i>
The case began in February 2011, when Stuart says he and his wife got the Kim Dotcom treatment after about 30 local Arizona law enforcement agents wearing SWAT gear and camouflage dress &#8212; some of them with bushes attached to their shoulders to blend into the woods around his house &#8212; descended on his home and threatened to send him and his wife to prison for 35 years if he didn&#8217;t cooperate.
<br /><br />
The search warrant used in the raid said Stuart and his wife were engaged in money laundering, operating an illegal enterprise and engaging in the promotion of gambling. Stuart has tried to obtain a copy of the affidavit used to get the search warrant, but it&#8217;s currently sealed.
</i></blockquote>
Yup.  They sent in a SWAT team to deal with... a software developer.  Because some companies who use his software might possibly have used it to allow gambling in New York (the state that's behind the charges against him).  And the warrant itself is sealed, so he doesn't even know why.  Then the story gets even worse.  In typical law enforcement fashion, they pressured him into doing a plea deal, in which he would have been forced to install backdoor code into his software, and then hack into his own customers to retrieve information on <i>their</i> users any time law enforcement wanted it.  He initially <a href="https://www.documentcloud.org/documents/551628-robert-stuart-plea-agreement.html" target="_blank">agreed to the plea bargain</a> based on bad advice from what he calls "rent-a-lawyers" he found on the internet.  However, before it could go before a judge, he wisely backed out.
<br /><br />
The NY's DA has defended this effort claiming that it was all perfectly aboveboard and legal to send a SWAT team to threaten a software developer into hacking into his own customers' data for the sake of law enforcement:
<blockquote><i>
Although Daniel R. Alonso, chief assistant in the Manhattan District Attorney&#8217;s Office, was reluctant to discuss the terms of the confidential plea agreement or how his office planned to implement them, he insisted there was nothing unlawful about what was proposed.
<br /><br />
&#8220;The provision you have questioned is perfectly consistent with the obligations of all law enforcement officials to follow state and federal law to secure evidence of criminal conduct,&#8221; Alonso said in an e-mail statement. &#8220;The staff of the Manhattan District Attorney&#8217;s office involved in this case, both prosecutors and investigators, have behaved ethically and consistent with their obligation to seek justice in every case.&#8221;
</i></blockquote>
Eighteen months went by... and then last fall he was criminally indicted -- though all of the original charges used in his initial threat had disappeared (because they were bogus) and all the NY DA could come up with was a single charge of "promoting gambling in the first degree."  Yes, because he supplies software in places where it's completely legal.
<br /><br />
If you think secondary liability issues are important (and I do!), this case should be a major concern.  The guy here just developed some useful software and sold it where it was legal to do so.  That should not lead to a SWAT team descending on your house, or facing criminal charges and possible jail time.  Blame the users of the software if <i>they</i> broke the law, but nothing that these guys did involved "promoting gambling" in areas where it was illegal.  It was about providing legal infrastructure (not promotional) software.  The whole thing is a shame, and shows how law enforcement's aggressiveness in trying to show themselves as being "tough on crime" can have serious implications.
<br /><br />
Stuart notes that he's lost a bunch of his customers since the indictment, which may destroy his business entirely.  And this can only lead to greater concern for other software developers as well.  If they license software for completely legal purposes, but the software is then used in commission of a crime, are they suddenly (1) going to be threatened at gunpoint to hack into their customers' accounts and (2) then charged on trumped up charges as well?<br /><br /><a href="http://www.techdirt.com/articles/20130107/11140121596/developer-bookmaking-software-gets-full-kim-dotcom-treatment-promoting-gambling.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130107/11140121596/developer-bookmaking-software-gets-full-kim-dotcom-treatment-promoting-gambling.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130107/11140121596/developer-bookmaking-software-gets-full-kim-dotcom-treatment-promoting-gambling.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>ridiculous</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20130107/11140121596</wfw:commentRss>
</item>
<item>
<pubDate>Mon, 10 Dec 2012 17:00:00 PST</pubDate>
<title>DailyDirt: Economic Phenomena, Not Just Theories</title>
<dc:creator>Michael Ho</dc:creator>
<link>http://www.techdirt.com/articles/20101025/05073411570/dailydirt-economic-phenomena-not-just-theories.shtml</link>
<guid>http://www.techdirt.com/articles/20101025/05073411570/dailydirt-economic-phenomena-not-just-theories.shtml</guid>
<description><![CDATA[ It's sometimes difficult to verify economic theories in the real world because it can be expensive to "test" really important policies. But as more and more people play increasingly realistic video games with active marketplaces, there may be ways to observe real economic phenomena in virtual economies. Here are just a few interesting observations on the topic of scarcity.

<ul>

<li> <a title="http://terranova.blogs.com/terra_nova/2009/08/virtual-economy-as-real-as-real.html" href="http://bit.ly/UqwAGY">Using 60TB of data from 400,000 Everquest players over 4 years, we can verify some economic behaviors in the virtual world and test economic policy decisions.</a> Maybe these researchers should test out a bunch of virtual "fiscal cliff" scenarios.... [<a href="http://terranova.blogs.com/terra_nova/2009/08/virtual-economy-as-real-as-real.html">url</a>]</li>

<li> <a title="http://www.fastcoexist.com/1679628/the-broken-buy-one-give-one-model-three-ways-to-save-toms-shoes" href="http://bit.ly/VAhMtP">Retailers need to think a bit more about charitable programs that simply donate items to developing markets.</a> Flooding a developing market with free goods isn't the optimal way to encourage market stability and create robust infrastructure. [<a href="http://www.fastcoexist.com/1679628/the-broken-buy-one-give-one-model-three-ways-to-save-toms-shoes">url</a>]</li>

<li> <a title="http://www.freakonomics.com/2010/11/18/freakonomics-radio-could-a-lottery-be-the-answer-to-americas-poor-savings-rate/" href="http://bit.ly/SBIXAk">Prize-Linked Savings (PLS) is a banking scheme to encourage people to save more of their earnings by offering a lottery prize for savings deposits.</a> So instead of lotteries always being a tax on the mathematically challenged, in this system, people can at least earn some interest by gambling. [<a href="http://www.freakonomics.com/2010/11/18/freakonomics-radio-could-a-lottery-be-the-answer-to-americas-poor-savings-rate/">url</a>]</li>

</ul>

If you'd like to read more awesome and interesting stuff, check out this unrelated (but not entirely random!) <a title="http://www.stumbleupon.com/to/stumble/stumblethru:www.techdirt.com" href="http://bit.ly/fagV8c">Techdirt post</a>.<br /><br /><a href="http://www.techdirt.com/articles/20101025/05073411570/dailydirt-economic-phenomena-not-just-theories.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20101025/05073411570/dailydirt-economic-phenomena-not-just-theories.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20101025/05073411570/dailydirt-economic-phenomena-not-just-theories.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>urls-we-dig-up</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20101025/05073411570</wfw:commentRss>
</item>
<item>
<pubDate>Mon, 25 Jun 2012 03:03:00 PDT</pubDate>
<title>Microsoft's 'Threat Management Gateway' Blocks Free Software Foundation Donation Page As 'Gambling'</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20120624/14365419449/microsofts-threat-management-gateway-blocks-free-software-foundation-donation-page-as-gambling.shtml</link>
<guid>http://www.techdirt.com/articles/20120624/14365419449/microsofts-threat-management-gateway-blocks-free-software-foundation-donation-page-as-gambling.shtml</guid>
<description><![CDATA[ Via <a href="http://slashdot.org/story/12/06/24/1325241/microsoft-blocks-fsf-donation-website-as-a-gambling-site?utm_source=slashdot&#038;utm_medium=twitter" target="_blank">Slashdot</a>, we learn that Microsoft's "Threat Management Gateway" (which some companies apparently use to protect against malicious websites) has <a href="http://www.fsf.org/blogs/community/dear-microsoft-fsf.org-is-not-a-gambling-site" target="_blank">classified the website for donations to the Free Software Foundation as "gambling,"</a> meaning that it's blocked for many users.  This was first discovered by <a href="http://www.reddit.com/r/gnu/comments/v21q3/how_microsoft_threat_management_gateway/" target="_blank">a user on Reddit</a> who received the following notice:
<blockquote><i>
The page you are trying to browse to is categorized as "Gambling"
<br /><br />
If you believe you are getting this message by mistake, try contacting your administrator or Helpdesk.
<br /><br />
Technical Information (for support personnel)
<br /><br />
Error Code: 403 Forbidden. Forefront TMG denied the specified Uniform Resource Locator (URL). (12233)<br />
IP Address: [IP Redacted]<br />
Date: 6/14/2012 6:31:39 PM [GMT]<br />
Server: [server name redacted]<br />
Source: proxy 
</i></blockquote>
You can confirm this at <a href="https://www.microsoft.com/security/portal/mrs/default.aspx" target="_blank">Microsoft's site</a> if you type donate.fsf.org in the box.  Currently, it shows the following:
<br /><br />
<center>
<a href="http://imgur.com/oEO6i"><img src="http://i.imgur.com/oEO6i.png" /></a>
</center>
What's amazing is the regular FSF page just shows "Technical Information" and "Shareware/Freeware."  So it seems that the "Gambling" designation was just added to the donate page.  Amazingly, the Reddit user noticed this nearly two weeks ago, and as I type this it's still showing up classified as gambling, though FSF has put in a request to change it.<br /><br /><a href="http://www.techdirt.com/articles/20120624/14365419449/microsofts-threat-management-gateway-blocks-free-software-foundation-donation-page-as-gambling.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120624/14365419449/microsofts-threat-management-gateway-blocks-free-software-foundation-donation-page-as-gambling.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120624/14365419449/microsofts-threat-management-gateway-blocks-free-software-foundation-donation-page-as-gambling.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>well,-for-microsoft-maybe</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20120624/14365419449</wfw:commentRss>
</item>
<item>
<pubDate>Wed, 21 Mar 2012 17:00:00 PDT</pubDate>
<title>DailyDirt: Beating The Odds</title>
<dc:creator>Michael Ho</dc:creator>
<link>http://www.techdirt.com/articles/20100326/0951128733/dailydirt-beating-odds.shtml</link>
<guid>http://www.techdirt.com/articles/20100326/0951128733/dailydirt-beating-odds.shtml</guid>
<description><![CDATA[ Everyone knows that the odds always favor the house, but every once in a while, someone figures out a way to beat the system. Here are just a few examples of clever folks who have succeeded and earned some significant winnings.

<ul>
<li> <a title="http://www.theatlantic.com/magazine/archive/2012/04/the-man-who-broke-atlantic-city/8900/?single_page=true" href="http://bit.ly/FQ5PZK">There are a lot of guys named Don Johnson (not just the actor from Miami Vice), but one of them beat the casino odds by negotiation... and has become the most famous blackjack player in the world.</a> So far, he's won about $15 million in Atlantic City (and he's been banned from a lot of casinos now). [<a href="http://www.theatlantic.com/magazine/archive/2012/04/the-man-who-broke-atlantic-city/8900/?single_page=true">url</a>]</li>

<li> <a title="http://www.damninteresting.com/who-wants-to-be-a-thousandaire/" href="http://bit.ly/FRn5fW">Michael Larson studied the game show, Press Your Luck, and figured out that the show's Big Board wasn't random.</a> Larson won $110,237 in cash and prizes -- which stood as a record for game show winnings until 2006 when it was broken on The Price is Right. [<a href="http://www.damninteresting.com/who-wants-to-be-a-thousandaire/">url</a>]</li>

<li> <a title="http://www.wired.com/magazine/2011/01/ff_lottery/all/1" href="http://bit.ly/qqNptl">Mohan Srivastava usually consults as a geological statistician, but he applied his statistical insights to scratch-off lottery tickets -- and figured out that he could make about $600 per day.</a> He's not the only one who has discovered design flaws in scratcher tickets, so there could be more lotteries out there with crackable security. [<a href="http://www.wired.com/magazine/2011/01/ff_lottery/all/1">url</a>]</li>

<li><b>To find more interesting stuff on entrepreneurship, <a title="http://www.stumbleupon.com/to/stumble/topic:144" href="http://bit.ly/mtB7z5">check out what's currently floating around the StumbleUpon universe.</a></b> [<a href="http://www.stumbleupon.com/to/stumble/topic:144">url</a>]  <a title="what's this?" href="#" class="whatsthis help_ddstumble">&nbsp;</a>
</li>
</ul> 

By the way, StumbleUpon can recommend some good <a title="http://www.stumbleupon.com/to/stumble/stumblethru:www.techdirt.com" href="http://bit.ly/fagV8c">Techdirt</a> articles, too.<br /><br /><a href="http://www.techdirt.com/articles/20100326/0951128733/dailydirt-beating-odds.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20100326/0951128733/dailydirt-beating-odds.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20100326/0951128733/dailydirt-beating-odds.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>urls-we-dig-up</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20100326/0951128733</wfw:commentRss>
</item>
<item>
<pubDate>Fri, 13 Jan 2012 11:17:00 PST</pubDate>
<title>German Court: ISP Must Not Block Access To Foreign Sites, Even If They Are Illegal</title>
<dc:creator>Glyn Moody</dc:creator>
<link>http://www.techdirt.com/articles/20120113/06103117399/german-court-isp-must-not-block-access-to-foreign-sites-even-if-they-are-illegal.shtml</link>
<guid>http://www.techdirt.com/articles/20120113/06103117399/german-court-isp-must-not-block-access-to-foreign-sites-even-if-they-are-illegal.shtml</guid>
<description><![CDATA[ <p>Against a background where some European courts are telling ISPs that they must block access to certain sites (in <a href="http://www.techdirt.com/articles/20120109/08581917344/finnish-isp-ordered-to-block-access-to-finnish-eff-site-as-part-pirate-bay-censorship-campaign.shtml">Finland</a> and the <a href="http://www.techdirt.com/articles/20111026/04022516521/uk-court-upholds-its-first-web-censorship-order-bt-has-14-days-to-block-access-to-newzbin2-gets-to-pay-privelege.shtml">UK</a>, for example), this news from Germany comes as a refreshing change (<a href="http://www.spiegel.de/netzwelt/netzpolitik/0,1518,808875,00.html">original German article in Der Spiegel</a>):

<i><blockquote>Deutsche Telekom must allow access to online betting sites, even if they are illegal in Germany. So ruled the Cologne Administrative Court on Thursday.</blockquote></i>

This follows a decision in D&uuml;sseldorf at the end of last year, where a judge had ruled that Vodafone and Telekom were not responsible for the content of Web sites, because they played no role in selecting material, and therefore should not be forced to block access.  Moreover, the latest judgment can be used as a precedent in similar cases, according to the Der Spiegel report.
</p><p>
Of course, this reasoning also applies in those jurisdictions where ISPs <b>have</b> been forced to censor sites.  This emphasizes the contradictory rules that are being applied across the EU, and the fact that the law in this area is by no means settled.
</p><p>
Follow me @glynmoody on <a href="http://twitter.com/glynmoody">Twitter</a> or <a href="http://identi.ca/glynmoody">identi.ca</a>, and on <a href="https://plus.google.com/100647702320088380533">Google+</a> </p><br /><br /><a href="http://www.techdirt.com/articles/20120113/06103117399/german-court-isp-must-not-block-access-to-foreign-sites-even-if-they-are-illegal.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120113/06103117399/german-court-isp-must-not-block-access-to-foreign-sites-even-if-they-are-illegal.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120113/06103117399/german-court-isp-must-not-block-access-to-foreign-sites-even-if-they-are-illegal.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>makes-a-change</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20120113/06103117399</wfw:commentRss>
</item>
<item>
<pubDate>Tue, 7 Sep 2010 18:08:00 PDT</pubDate>
<title>Betcha Loses Its Big Bet: Court Now Says It's Illegal Gambling</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20100903/13391610897.shtml</link>
<guid>http://www.techdirt.com/articles/20100903/13391610897.shtml</guid>
<description><![CDATA[ Back in 2007, we wrote about a startup that was trying to sneak its way through anti-online gambling laws by trying to squeeze through a <a href="http://www.techdirt.com/articles/20070619/071346.shtml">loophole</a>.  The site, called Betcha, would let people bet each other on various things, but which let bettors renege on any bet if they lost.  Of course, doing so would give you negative feedback on your profile.  However, the site argued that because anyone could bail out of a bet, it wasn't illegal gambling.  Authorities in Washington State (who have one of the strictest anti-online gambling laws around) <a href="http://www.techdirt.com/articles/20070710/164508.shtml">disagreed</a>.  A district court said the site was illegal... but an appeals court <a href="http://www.techdirt.com/articles/20090211/0256033732.shtml">reversed</a>, saying that the presence of the renege button mean there was "nothing risked" and thus, it did not meet the definition of gambling.
<br /><br />
Like the ups-and-downs of gambling, however, the next roll of the dice hasn't been kind to Betcha.  Eric Goldman is reporting that the state Supreme Court has <a href="http://blog.ericgoldman.org/archives/2010/09/p2p_gambling_si.htm" target="_blank">reversed again and found the site guilty of illegal gambling</a> by a unanimous 9-0 vote:
<blockquote><i>
The court's opinion makes it clear that expansive anti-gambling laws leave almost no room for entrepreneurial yet legal Internet gambling enterprises. Here, Betcha is tripped up by the definition of "bookmaking," defined as "accepting bets, upon the outcome of future contingent events, as a business or in which the bettor is charged a fee or "vigorish" for the opportunity to place a bet." This strikes at Betcha's model of charging the parties to communicate with each other regarding betting. The court is not swayed by Betcha's formalist argument that because the loser could renege on the bet, the wager did not meet the statutory definitions for gambling. The court says the bookmaking definition applies whether the bets are made for money or not.
</i></blockquote><br /><br /><a href="http://www.techdirt.com/articles/20100903/13391610897.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20100903/13391610897.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20100903/13391610897.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>betcha-knew-that</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20100903/13391610897</wfw:commentRss>
</item>
<item>
<pubDate>Thu, 12 Aug 2010 22:10:33 PDT</pubDate>
<title>French Court Orders ISPs To Block Gambling Websites</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20100812/03521710605.shtml</link>
<guid>http://www.techdirt.com/articles/20100812/03521710605.shtml</guid>
<description><![CDATA[ While there's a lot of attention being paid to the French "three strikes law," and the organization, Hadopi, that is planning a system for <a href="http://www.techdirt.com/articles/20100804/04205910492.shtml">implementing it</a>, it appears that another form of internet censorship is happening via the courts in France.  Reader JJ sends over the news that <a href="http://www.right2bet.net/community/blog/2010/08/isps-in-france-ordered-to-censor-online-content.php" target="_blank">ISPs in France are being ordered to block access to certain "unauthorized" gambling websites</a>.  The country's gambling regulator, Arjel, ordered the ISPs to block certain gambling sites, and after a court battle, it appears Arjel has won.  Effectively, the court has ruled that the French government can order ISPs to censor the internet, which seems like the sort of story that should be getting more attention.<br /><br /><a href="http://www.techdirt.com/articles/20100812/03521710605.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20100812/03521710605.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20100812/03521710605.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>hello,-censorship</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20100812/03521710605</wfw:commentRss>
</item>
<item>
<pubDate>Tue, 20 Apr 2010 00:23:00 PDT</pubDate>
<title>Match-Fixing Scandal Hits South Korean Video Games</title>
<dc:creator>Carlo Longino</dc:creator>
<link>http://www.techdirt.com/articles/20100419/1151349081.shtml</link>
<guid>http://www.techdirt.com/articles/20100419/1151349081.shtml</guid>
<description><![CDATA[ Online gaming is massively popular in South Korea, so much so that its popularity among teens -- and their propensity to stay up all night playing them -- is seen as serious <a href="http://techdirt.com/articles/20100415/1611309034.shtml">social problem</a>. But the country's professional gaming leagues have been hit by a match-fixing scandal in which <a href="http://www.koreatimes.co.kr/www/news/tech/2010/04/134_64247.html">players and officials have allegedly taken bribes</a> (via the <a href="http://news.bbc.co.uk/2/hi/technology/8623514.stm">BBC</a>) from gamblers to throw games of StarCraft. The incredible popularity of StarCraft, and other online games, in Korea has created enough interest to fuel illegal gambling sites that bet on the outcome of matches between the country's 12 pro teams. The maker of StarCraft, Blizzard, has been trying to <a href="http://techdirt.com/articles/20090803/0156125746.shtml">take a cut</a> of the TV revenues generated from the matches, a move that wasn't well received in Korea. It looks like that spat might get precluded by the crumbling of the pro league.<br /><br /><a href="http://www.techdirt.com/articles/20100419/1151349081.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20100419/1151349081.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20100419/1151349081.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>where-there-is-money-to-be-made...</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20100419/1151349081</wfw:commentRss>
</item>
<item>
<pubDate>Thu, 18 Mar 2010 15:05:00 PDT</pubDate>
<title>Kentucky Supreme Court Overturns Ruling That Blocked State Seizure Of Gambling Domain Names</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20100318/1242508624.shtml</link>
<guid>http://www.techdirt.com/articles/20100318/1242508624.shtml</guid>
<description><![CDATA[ As you may recall, in a move that was blatantly designed to protect local gambling interests (no one denies this particular point), Kentucky passed a law allowing the governor to declare any gambling related website (even parked domains) "illegal gambling devices" and then to <a href="http://www.techdirt.com/articles/20080923/1851142353.shtml">seize those domains</a>.  The governor moved to do so on over 100 domains -- none of which had anything to do with Kentucky whatsoever.  Amazingly, a judge <a href="http://www.techdirt.com/articles/20081020/0058002578.shtml">agreed</a> that the governor had every right to seize these domain names, despite the lack of a Kentucky connection.  It's not hard to see how problematic a ruling this is from a jurisdictional standpoint.  Thankfully, the state's appeals court <a href="http://www.techdirt.com/articles/20090120/2045263471.shtml">overturned</a> the lower court ruling.  Separately, a UK court ruled that Kentucky <a href="http://www.techdirt.com/articles/20091030/0344456730.shtml">had no right</a> to seize UK-based domains.
<br /><br />
The state appealed the ruling in the appeals court, and many assumed that the Kentucky Supreme Court would agree with the basic logic of the appeals court. Instead <a href="http://www.techdirt.com/profile.php?u=ragaboo">Ragaboo</a> alerts us to the news that the Kentucky Supreme Court has <a href="http://www.cardplayer.com/poker-news/8726-poker-domains-in-jeopardy-as-kentucky-supreme-court-reverses-earlier-decision" target="_blank">overturned the appeals court ruling</a>, effectively allowing the state to seize the domain names again.  The ruling focused on a technicality, rather than on the merits -- arguing that the Interactive Media and Gaming Association (iMEGA) and the Interactive Gaming Council (IGC), two gaming associations who brought the lawsuit in the first place, had no standing in the case and could not bring the case in question.
<blockquote><i>
"Instead of owners, operators, or registrants of the website domain names, the lawyers opposing the Commonwealth claimed to represent two types of entities: (1) the domain names themselves and (2) gaming trade association who profess to include as members registrants of the seized domains, though they have yet to reveal any of their identities."
<br /><br />
The court even acknowledged that the lawyers on behalf of the associations made "numerous, compelling arguments endorsing the grant of the writ of prohibition," but that "(a)lthough all such arguments may have merit, none can even be considered unless presented by a party with standing."
</i></blockquote>
Of course, it seems rather ironic that the issue here is standing, when you could just as easily ask what sort of standing the state of Kentucky has to seize a domain name based elsewhere?  In the meantime, if any of the actual domain owners is willing to step forward, the case may be reheard -- and hopefully the Kentucky Supreme Court will rule against the state on the merits and the simple fact that seizing domain names that have nothing to do with Kentucky sets an incredibly dangerous precedent.<br /><br /><a href="http://www.techdirt.com/articles/20100318/1242508624.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20100318/1242508624.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20100318/1242508624.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>jurisdictional-mess</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20100318/1242508624</wfw:commentRss>
</item>
<item>
<pubDate>Mon, 2 Nov 2009 20:20:00 PST</pubDate>
<title>UK Court Says Kentucky Has No Right To Seize Gambling Domain Name</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20091030/0344456730.shtml</link>
<guid>http://www.techdirt.com/articles/20091030/0344456730.shtml</guid>
<description><![CDATA[ We've covered the bizarre legal battle in Kentucky, where the governor tried to have a long list of gambling-related domain names (none of which had anything to do with the state of Kentucky) declared "illegal gambling devices" so that the state could <a href="http://www.techdirt.com/articles/20080923/1851142353.shtml">seize the domain names</a>.  The governor has been pretty open that this has nothing to do with any moral issue over online gambling, but is a blatant attempt to help protect local gambling establishments in the state.  Of course, it's ridiculous to think that a state governor could claim the right to seize domain names that are not based in Kentucky at all, and after a lower court (that didn't seem to understand the issue) sided with the governor, an appeal court <a href="http://www.techdirt.com/articles/20090120/2045263471.shtml">overturned</a> that ruling.  Rather than recognize how silly this campaign is, the case is <a href="http://www.techdirt.com/articles/20090921/0314486264.shtml">going to the state Supreme Court</a>.
<br /><br />
But, apparently the lawsuits aren't just happening in Kentucky.  <a href="http://twitter.com/InternetLaw/statuses/5089813169" target="_blank">Michael Scott</a> points us to the news that one of the companies targeted by Kentucky brought a lawsuit both against Kentucky and its own registrar in the UK to get a ruling that it is not subject to the whims of Kentucky politicians.  The state of Kentucky ignored the proceedings, which resulted in the court <a href="http://ipkitten.blogspot.com/2009/10/kentucky-in-no-state-to-seize-domain.html" target="_blank">agreeing that Kentucky has no right to seize the domain name</a>.  Of course, the state of Kentucky probably couldn't care much less about what a court in England thinks (which explains why it didn't even bother to respond), so the victory may be somewhat meaningless.  However, at the very least, if Kentucky somehow wins its case in the US, perhaps the registrars in the UK can point to this ruling to refuse handing over the domain names.<br /><br /><a href="http://www.techdirt.com/articles/20091030/0344456730.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20091030/0344456730.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20091030/0344456730.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>not-that-it-cares</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20091030/0344456730</wfw:commentRss>
</item>
<item>
<pubDate>Tue, 22 Sep 2009 04:12:01 PDT</pubDate>
<title>Kentucky's Attempt To Seize Gambling Domain Names Goes To State Supreme Court</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20090921/0314486264.shtml</link>
<guid>http://www.techdirt.com/articles/20090921/0314486264.shtml</guid>
<description><![CDATA[ A year ago, we were surprised to hear that Kentucky's governor was trying to <a href="http://www.techdirt.com/articles/20080923/1851142353.shtml">seize the domain names</a> of a long list of over 100 sites that had something to do with gambling.  The governor was basing this on a Kentucky law that let the government seize "devices" used for gambling, even though none of the sites in question were based in Kentucky.  The governor -- who many say did this to protect local Kentucky gambling operations -- compared these website to "a virtual home invasion."  While a judge originally was going to <a href="http://www.techdirt.com/articles/20081020/0058002578.shtml">allow</a> the seizure, the state appeals court <a href="http://www.techdirt.com/articles/20090120/2045263471.shtml">overturned</a> the ruling, saying that it was clear that a domain name is not a gambling device.
<br /><br />
Rather than back down, the governor pushed ahead and is using taxpayer money to appeal the ruling.  <a href="http://www.CardPlayer.com">Ragaboo</a> alerts us to the news that <a href="http://www.cardplayer.com/poker-news/7589-kentucky-poker-case-heads-to-states-supreme-court" target="_new">the Kentucky Supreme Court is getting set to hear the case</a>.  It's difficult to see how the governor has much of a leg to stand on here.  He's trying to seize the domain names of businesses operated entirely outside the state.  Allowing such a seizure of domain names would set a horrendous precedent and create all sorts of problems. Hopefully the Kentucky Supreme Court sees this, and Governor Steven Beshear realizes it's best to give up this dangerous crusade.<br /><br /><a href="http://www.techdirt.com/articles/20090921/0314486264.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20090921/0314486264.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20090921/0314486264.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>waste-of-kentucky-taxpayer-dollars</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20090921/0314486264</wfw:commentRss>
</item>
<item>
<pubDate>Tue, 9 Jun 2009 09:31:00 PDT</pubDate>
<title>Minnesota Gives In; Won't Block Gambling Sites</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20090608/1348195167.shtml</link>
<guid>http://www.techdirt.com/articles/20090608/1348195167.shtml</guid>
<description><![CDATA[ Back in April, the state of Minnesota tried to force ISPs to <a href="http://techdirt.com/articles/20090430/0039134699.shtml">block</a> certain gambling websites.  Similar attempts had been tried in a few other states, and quickly shot down by the courts -- and it didn't take long for a <a href="http://www.techdirt.com/articles/20090508/2243564799.shtml">lawsuit</a> to emerge in Minnesota.  However, the good news is that the state <a href="http://hosted.ap.org/dynamic/stories/U/US_TEC_INTERNET_GAMBLING?SITE=CADIU&#038;SECTION=HOME&#038;TEMPLATE=DEFAULT" target="_new">has apparently agreed to back down</a> rather than trying to fight a bogus and costly lawsuit.  Basically, it sounds like enough lawyers explained to state officials that their likelihood of winning was pretty slim -- so the state just folded.  At least they didn't keep trying to waste taxpayer money trying to fight for such censorship.<br /><br /><a href="http://www.techdirt.com/articles/20090608/1348195167.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20090608/1348195167.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20090608/1348195167.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>good-for-them</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20090608/1348195167</wfw:commentRss>
</item>
<item>
<pubDate>Mon, 11 May 2009 05:54:18 PDT</pubDate>
<title>Minnesota Sued Over Online Gambling Ban, While Frank Again Introduces Bill To Legalize It</title>
<dc:creator>Carlo Longino</dc:creator>
<link>http://www.techdirt.com/articles/20090508/2243564799.shtml</link>
<guid>http://www.techdirt.com/articles/20090508/2243564799.shtml</guid>
<description><![CDATA[ We noted several days ago that Minnesota was trying to force ISPs <a href="http://techdirt.com/articles/20090430/0039134699.shtml">to block</a> gambling web sites, going down a path trodden by several other states. That path, of course, has always ended in failure after the courts have <a href="http://www.techdirt.com/articles/20040910/109205.shtml">weighed in</a>. It looks like the courts will now get their chance to rain on Minnesotan politicians' parade, as a trade group <a href="http://www.dslreports.com/shownews/Group-Sues-Minnesota-Regulators-Over-Gambling-Ban-102344" target="_new">has sued the director of the state's Department of Public Safety's Alcohol and Gambling Enforcement division</a> to stop the ban. The group uses the suit to remind the director that he doesn't have the authority to mandate the blocking by ISPs, something the court will likely reinforce. 
<br /><br />
Meanwhile, online gambling's biggest friend in Congress, Massachusetts Rep. Barney Frank, has again introduced legislation that would <a href="http://www.google.com/hostednews/afp/article/ALeqM5j22cdZo-b_2u22YCcteBlTXuFEHw">legalize and regulate online gambling in the US</a>. It sounds pretty much the same as his earlier attempts, all of which have failed, and would take the eminently reasonable step of allowing Americans to gamble in a regulated environment where they're protected by rules and law, as opposed to the current situation where they're pushed into the gray market (or worse), and have no protection. Frank also says he'll introduce separate legislation that will stop the <a href="http://www.techdirt.com/articles/20081112/1459092811.shtml">enforcement of the UIGEA</a>, which says that banks must stop processing any transactions that fund online gambling. At least one big casino company seems to think Frank's got a good chance of finally getting his law through: Harrah's, which <a href="http://www.pokernewsdaily.com/former-partygaming-ceo-hired-by-harrahs-1966/">recently hired</a> the former CEO of major online gambling company PartyGaming to head its online efforts ahead of legalization.<br /><br /><a href="http://www.techdirt.com/articles/20090508/2243564799.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20090508/2243564799.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20090508/2243564799.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>know-when-to-hold-em</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20090508/2243564799</wfw:commentRss>
</item>
<item>
<pubDate>Thu, 30 Apr 2009 13:39:00 PDT</pubDate>
<title>Minnesota Is The Latest State To Try To Force ISPs To Block Gambling Sites</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20090430/0039134699.shtml</link>
<guid>http://www.techdirt.com/articles/20090430/0039134699.shtml</guid>
<description><![CDATA[ There have been a few attempts by state governments to force ISPs to block certain sites, and such attempts almost always end badly.  Recently, for example, the state of Kentucky has been not just trying to block access to gambling-related websites, but to <a href="http://www.techdirt.com/articles/20080923/1851142353.shtml">seize</a> the domains in question.  That <a href="http://www.techdirt.com/articles/20090120/2045263471.shtml">failed</a> when the courts pointed out how ridiculous it was.  Perhaps the most famous such attempt was Pennsylvania's law to try to force ISPs to <a href="http://www.techdirt.com/articles/20030423/0034248.shtml">block</a> "undesirable" sites from a list the gov't would put together.  A federal court <a href="http://www.techdirt.com/articles/20040910/109205.shtml">tossed the law</a>, saying that it was unreasonable.  You would think that other states would take notice before trekking down a similar path.  But, apparently the news hasn't reached Minnesota.
<br /><br />
  <a href="http://news.slashdot.org/article.pl?sid=09/04/29/1745232&#038;from=rss" target="_new">Slashdot</a> points out that <a href="http://wcco.com/consumer/online.gambling.block.2.997257.html" target="_new">Minnesota is trying to twist a law from half a century ago</a> to mean that ISPs need to block gambling websites.  Basically, the law says that common carriers need to comply with government requests to block gambling services.  Of course, that assumes that ISPs are, in fact, common carriers -- a point that many would dispute.  Also, the law was clearly intended for a very different purpose than someone using a broadband connection to access a gambling site.  Still, gambling is another topic that politicians love to grandstand about, so expect this to keep moving forward, even if it makes no sense and has little chance of surviving a legal challenge.<br /><br /><a href="http://www.techdirt.com/articles/20090430/0039134699.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20090430/0039134699.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20090430/0039134699.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>this-will-end-badly-too</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20090430/0039134699</wfw:commentRss>
</item>
<item>
<pubDate>Fri, 20 Feb 2009 16:30:44 PST</pubDate>
<title>Frank To Push For Repeal Of Internet Gambling Ban</title>
<dc:creator>Carlo Longino</dc:creator>
<link>http://www.techdirt.com/articles/20090220/1200013849.shtml</link>
<guid>http://www.techdirt.com/articles/20090220/1200013849.shtml</guid>
<description><![CDATA[ Congressman Barney Frank will apparently soon introduce legislation <a href="http://uk.reuters.com/article/UK_SMALLCAPSRPT/idUKN2026954220090220">to repeal the US ban on online gambling</a>, as the EU looks like it's preparing to push the WTO <a href="http://www.reuters.com/article/americasRegulatoryNews/idUSLJ81707220090219">to take action</a> against the ban. Along with being <a href="http://techdirt.com/articles/20081217/0907523151.shtml">ineffective</a> and useless, the ban <a href="http://techdirt.com/articles/20070620/072909.shtml">falls foul</a> of WTO regulations, and could lead to the US being subject to punishments from the organization. It sounds as though the WTO would like to give the US government the chance to sort out the illegal ban on its own before taking action on a complaint about it.  Though, even with the changed political climate in the US, it remains to be seen if the repeal could stick. It's also really hard to see how a ban on online gambling, and forcing financial institutions to police it, remains preferable to a well-regulated environment that protects consensual bettors. Hopefully US politicians will agree.<br /><br /><a href="http://www.techdirt.com/articles/20090220/1200013849.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20090220/1200013849.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20090220/1200013849.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>busted-out</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20090220/1200013849</wfw:commentRss>
</item>
<item>
<pubDate>Wed, 11 Feb 2009 15:25:40 PST</pubDate>
<title>Court Says It's Not Online Gambling If You Can Renege On A Bet</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20090211/0256033732.shtml</link>
<guid>http://www.techdirt.com/articles/20090211/0256033732.shtml</guid>
<description><![CDATA[ The US has always had this odd hatred for online gambling -- but no state has been more aggressive about the issue than Washington state -- even to the point of threatening people with arrests for even <a href="http://www.techdirt.com/articles/20060615/112240.shtml">talking about</a> online gambling.  So, you can imagine that the state didn't look too favorably on the launch of a person-to-person "wager" site called Betcha.com which claimed it had found a nice <a href="http://www.techdirt.com/articles/20070619/071346.shtml">loophole</a> that made it legal: you could renege on your bet.  Yes, if you lost a wager, you could click a button saying "I refuse to pay."  The catch, of course, was that the site had a rating system, and if you reneged, it was likely to harm your rating, and others might refuse to bet against you.  Betcha claimed that the presence of the renege button meant that it wasn't actually gambling, because you never actually had to bet any money.
<br /><br />
The state of Washington not only disagreed, it took a month or so until state authorities <a href="http://www.techdirt.com/articles/20070710/164508.shtml">raided the company, arrested its founders and seized its computers</a>.  That seems pretty extreme for what does seem to be a rather open question in the law.  And, in fact, a state appeals court found that the Betcha founder is right: <a href="http://seattletimes.nwsource.com/html/localnews/2008730970_betcha11m.html" target="_new">the presence of the renege button means that the site is not a gambling site</a>:
<blockquote><i>
"Accordingly, there is nothing risked, which is the essence of both the common law and statutory definition of 'gambling.'"
</i></blockquote>
Of course, that doesn't mean Betcha is coming back into existence.  Since its founder (who has a law degree and had carefully researched gambling laws to make sure the loophole was legit) was arrested, thrown in jail, extradited to Louisiana, charged (in Louisiana) with gambling-related felonies finally forcing him to negotiate a plea bargain, dropping the charges if he agreed to certain conditions.  With that experience in mind, restarting the site and risking it happening again just doesn't seem that appealing.
<br /><br />
So, way to go Washington State -- you tossed a guy in jail for a completely legal web business.<br /><br /><a href="http://www.techdirt.com/articles/20090211/0256033732.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20090211/0256033732.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20090211/0256033732.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>hello-loophole</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20090211/0256033732</wfw:commentRss>
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<item>
<pubDate>Wed, 21 Jan 2009 03:13:00 PST</pubDate>
<title>Court Of Appeals Overturns Kentucky Gambling Domain Seizure</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20090120/2045263471.shtml</link>
<guid>http://www.techdirt.com/articles/20090120/2045263471.shtml</guid>
<description><![CDATA[ Back in September, the state of Kentucky tried to <a href="http://www.techdirt.com/articles/20080923/1851142353.shtml">seize over 100 domain names</a>, claiming they violated a local state law against "gambling devices."  None of the domains were run or hosted in the state of Kentucky, which made this quite a stretch in legal terms.  While many of the domain names were for gambling websites, some were merely parked domains.  The politicians who ordered the seizure were quite open that this was an attempt to "protect" local gambling interests -- but it seems like an incredible legal reach to claim that because of local protectionist laws, the state somehow has the right to seize domain names from around the world.  The domain owners complained, but a local Kentucky state court ruled <a href="http://www.techdirt.com/articles/20081020/0058002578.shtml">in favor</a> of the government.  However, an appeals court quickly told the state to <a href="http://www.techdirt.com/articles/20081119/0317292881.shtml">hold off</a> seizing the domains until it could review the case.
<br /><br />
That court has now <a href="http://www.eff.org/deeplinks/2009/01/kentucky-court-appeals-overturns-lower-courts-seiz" target="_new">overturned the lower court ruling</a> saying that a domain name is clearly <i>not</i> a gambling device, and is not covered by the law.  However, this does potentially leave the door open for Kentucky politicians to change the law to include domain names... at which point we'll need to go through this whole silly legal battle all over again.<br /><br /><a href="http://www.techdirt.com/articles/20090120/2045263471.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20090120/2045263471.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20090120/2045263471.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>good-ruling</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20090120/2045263471</wfw:commentRss>
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<item>
<pubDate>Tue, 30 Dec 2008 17:47:22 PST</pubDate>
<title>Are Online Penny Auctions Actually Gambling?</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20081229/1850233240.shtml</link>
<guid>http://www.techdirt.com/articles/20081229/1850233240.shtml</guid>
<description><![CDATA[ A few weeks back, we wrote about a site that seemed to have modified the old "dollar auction" concept and created a <a href="http://www.techdirt.com/articles/20081214/1922133113.shtml">borderline evil business plan</a> that would get plenty of people to pay money to "bid" on way underpriced goods.  People keep bidding, because the costs seem so low -- but since everyone has to pay to bid, the companies ends up making a <i>ton</i> of money -- often many times the actual cost of the product.  Basically, the company and whoever "wins" the auction are likely to make out okay -- while every other bidder loses.  Apparently, there are a number of such sites doing similar models, and the UK government is noticing that it's  <a href="http://news.bbc.co.uk/2/hi/business/7793054.stm" target="_new">pretty similar to gambling</a> and probably should be regulated as a gambling site.
<br /><br />
The reasoning is that people are paying money and might not get anything back for it -- which makes it akin to gambling.  However, depending on how these sites are run, it's not as though the results are a real gamble -- it's still about whoever bids the highest for a good, so it seems like a stretch to call it gambling.  It <i>is</i> a dumb move to get involved in any of these auctions in the first place (in many ways, worse than gambling), but that doesn't necessarily mean that they should be regulated like gambling sites.<br /><br /><a href="http://www.techdirt.com/articles/20081229/1850233240.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20081229/1850233240.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20081229/1850233240.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>here-come-the-regulators...</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20081229/1850233240</wfw:commentRss>
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<pubDate>Wed, 3 Dec 2008 22:57:08 PST</pubDate>
<title>Gaming Giants Still Can't Make Up Their Mind On Internet Gambling</title>
<dc:creator>Carlo Longino</dc:creator>
<link>http://www.techdirt.com/articles/20081125/0847552948.shtml</link>
<guid>http://www.techdirt.com/articles/20081125/0847552948.shtml</guid>
<description><![CDATA[ The American Gaming Association, the casino industry's biggest trade group, is <a href="http://www.lasvegassun.com/news/2008/nov/25/web-betting-wedge-big-gaming/">struggling to reach a consensus on internet betting</a>, as its members take up divergent viewpoints. Some casino companies support federal regulation for it, while others want states to be able to regulate it (though maybe not <a href="http://techdirt.com/articles/20081119/0317292881.shtml">Kentucky</a>); others, of course, want to see the blanket ban continue, fearful of anything that might let new competitors in to the market. The AGA's latest approach appears to be to support legislation to study whether to legalize online betting -- which, we're pretty sure, sounds about as wishy-washy as could be. 
<br /><br />
The facts surrounding online gambling in the US are already pretty clear: previous legislative efforts may have reduced online gambling, but they've also driven American bettors to largely unregulated services and forced them to use some other often-shady services to fund their activities -- since US banks are given the <a href="http://techdirt.com/articles/20081109/0136582775.shtml">responsibility</a> to stop gambling sites' funding. The result is that gamblers keep up the same activity they were doing before, but are now exposed to more danger and risk, while US authorities are missing out on the chance to collect some taxes. This still seems pretty irresponsible, since gaming regulators in mature markets would argue that driving consumers into unregulated territory where they're not protected by laws and rules governing casinos isn't a great idea.
<br /><br />
Meanwhile, the AGA's waffling isn't a surprise, since many of its members hate to see new competition in any form. But existing casino operators are, arguably, better placed than anyone to compete in new, highly regulated markets that don't require huge capital outlays on the scale of expensive new properties. Also, it's hard to understand how more competition for gambling dollars could hurt consumers, when competition might actually deliver them a number of significant benefits, particularly over gray-market services of questionable legality.<br /><br /><a href="http://www.techdirt.com/articles/20081125/0847552948.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20081125/0847552948.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20081125/0847552948.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>wanna-bet?</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20081125/0847552948</wfw:commentRss>
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<pubDate>Wed, 19 Nov 2008 16:59:00 PST</pubDate>
<title>Kentucky Appeals Court Tells Kentucky To Hold Off Seizing Domains</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20081119/0317292881.shtml</link>
<guid>http://www.techdirt.com/articles/20081119/0317292881.shtml</guid>
<description><![CDATA[ While a lower court in Kentucky had <a href="http://www.techdirt.com/articles/20081020/0058002578.shtml">agreed</a> to allow the state to seize 141 domain names as being "illegal gambling devices" despite having nothing to do with the state of Kentucky, other than being available on internet connections there (and everywhere else), an appeals court has now <a href="http://www.pokerlistings.com/appeals-court-grants-stay-in-kentucky-case-32901" target="_new">issued an injunction to stop the state from seizing the domains</a> until the appeal can be heard.  While we still have to wait for the full appeal, at least damage won't be done in the interim.
<br /><br />
There's one other interesting note in the article, which is that Kentucky's Attorney General appears to be trying to distance himself from the case.  Even though most state actions are normally taken by the AGs office, in this case, the lawsuit was filed by the state's Secretary of Justice and Public Safety (there's some question if it's legal for this person to bring the suit).  Either way, the AG's name was on the case, but he's now specifically asked to have his name removed from the case.  That seems like quite a statement.  When even the Attorney General of the state wants nothing to do with the lawsuit, perhaps it's time for the state to admit it overstepped some legal bounds.<br /><br /><a href="http://www.techdirt.com/articles/20081119/0317292881.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20081119/0317292881.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20081119/0317292881.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>wait-just-a-second...</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20081119/0317292881</wfw:commentRss>
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<pubDate>Thu, 13 Nov 2008 16:22:00 PST</pubDate>
<title>EFF, ACLU Ask Court To Strike Down Kentucky's Domain Name Seizure</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20081113/1542002828.shtml</link>
<guid>http://www.techdirt.com/articles/20081113/1542002828.shtml</guid>
<description><![CDATA[ You may recall that a judge recently <a href="http://www.techdirt.com/articles/20081020/0058002578.shtml">allowed</a> Kentucky's governor to <a href="http://www.techdirt.com/articles/20080923/1851142353.shtml">seize</a> a bunch of domain names that were related to gambling -- even if neither the owners nor the servers were based in Kentucky -- setting a <a href="http://www.techdirt.com/articles/20081009/1142502506.shtml">terrible precedent</a>.  That's why it's good to see the EFF, the ACLU and the Center for Democracy and Technology (CDT) team up yet again to <a href="http://www.eff.org/press/archives/2008/11/13" target="_new">ask an appeals court to overturn this decision</a>.  Hopefully the appeals court recognizes how truly awful the original decision was, and notes how it seems to violate multiple clauses of the Constitution.<br /><br /><a href="http://www.techdirt.com/articles/20081113/1542002828.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20081113/1542002828.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20081113/1542002828.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>good-for-them</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20081113/1542002828</wfw:commentRss>
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<pubDate>Mon, 10 Nov 2008 16:55:00 PST</pubDate>
<title>Whitehouse Accused Of Trying To Push Through Anti-Gambling Regulation No One Wants</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20081109/0136582775.shtml</link>
<guid>http://www.techdirt.com/articles/20081109/0136582775.shtml</guid>
<description><![CDATA[ Even as some of our elected representatives are trying to <a href="http://www.techdirt.com/articles/20080918/0229432304.shtml">re-legalize</a> poker, the White House appears to be trying to shove through the regulations put in place a couple years ago to stop online gambling.  The Unlawful Internet Gambling Enforcement Act of 2006 put the responsibility on financial institutions to stop any financial transactions used in online gambling.  As we see all too often, it's a situation where the government is putting the liability on a third party to stop an undesirable activity, rather than on those actually involved in the activity.  Not surprisingly, financial institutions have been protesting any regulations enforcing this law -- and with the current financial collapse going on, they're pushing back hard on any effort to enforce the law.  So, what happens?  Apparently, the White House has assigned a former NFL lobbyist working for the White House to try to <a href="http://www.bloomberg.com/apps/news?pid=20601087&#038;sid=acxpdAx0GTCo&#038;refer=worldwide" target="_new">force the regulations through</a>, apparently putting tremendous pressure to get things moving.  Congress is now asking the White House to explain why they're trying to rush this through, just as financial institutions are having so much trouble.  It certainly does raise questions.  Considering the push to reverse the law in the first place, combined with the protests from financial institutions that it shouldn't be their problem to stop online gambling, why is the White House putting excess pressure to try to make it happen?<br /><br /><a href="http://www.techdirt.com/articles/20081109/0136582775.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20081109/0136582775.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20081109/0136582775.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>hurry-up-and-regulate</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20081109/0136582775</wfw:commentRss>
</item>
<item>
<pubDate>Mon, 20 Oct 2008 06:33:00 PDT</pubDate>
<title>Judge Allows Kentucky To Seize Domain Names</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20081020/0058002578.shtml</link>
<guid>http://www.techdirt.com/articles/20081020/0058002578.shtml</guid>
<description><![CDATA[ Last month, we wrote about a judge allowing Kentucky's governor to <a href="http://www.techdirt.com/articles/20080923/1851142353.shtml">seize 141 domain names</a> that were somehow associated with gambling sites under a bizarre interpretation of Kentucky law.  Pretty much everyone involved admits that this is just Kentucky's governor protecting local gambling establishments who supported him in the election.  No one is even hiding the fact that this is purely about protecting the governor's political supporters from any sort of competition.
<br /><br />
However, what's scary is in how the seizure is incredibly broad and far-reaching.  None of the sites are based in Kentucky.  Many of the sites are nothing more than holding pages, rather than actual online casinos.  And, the law itself interprets these sites as "illegal gambling <i>devices</i>" which seems like a big stretch.  There was some pushback, as people explained to the judge what an <a href="http://www.techdirt.com/articles/20081009/1142502506.shtml">incredibly bad precedent</a> this ruling would set -- as it would effectively allow any local law to be used to take <i>possession</i> of any website.
<br /><br />
Apparently, the judge doesn't care.  Late last week, the judge <a href="http://www.pokerroad.com/news.php?id=748" target="_new">upheld the original ruling</a>, giving one small out to the various sites.  If they implement filters that block access to any IP address in Kentucky, they can keep their domain names.  That's backwards.  It shouldn't be the responsibility of a website that is just online to use geocoding techniques to comply with every single local law.  If that were the case, the internet would ground to a halt, as any website would face so many different liabilities from so many different jurisdictions to make it impossible to comply -- and in each lack of compliance, face a potential seizure of the domain name.  This is a bad ruling by any stretch of the imagination, made even more bizarre by the judge's <a href="http://freedom-to-tinker.com/blog/joehall/kentucky-vs-141-domain-names">unilateral ruling</a> before a hearing was even held.  The whole thing sounds quite questionable, and hopefully will be dumped on appeal.<br /><br /><a href="http://www.techdirt.com/articles/20081020/0058002578.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20081020/0058002578.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20081020/0058002578.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>bad,-bad-news</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20081020/0058002578</wfw:commentRss>
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<pubDate>Fri, 17 Oct 2008 10:10:00 PDT</pubDate>
<title>Sorry, But Google Ads Aren't Driving People To Gamble</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20081017/0211472570.shtml</link>
<guid>http://www.techdirt.com/articles/20081017/0211472570.shtml</guid>
<description><![CDATA[ Google has apparently banned advertisements for online gambling operations in the UK for years.  Even though online gambling is legal in the UK, there were strict rules on advertising that Google didn't want to have to deal with.  However, those rules have now been relaxed, so Google is now starting to accept those ads again... and <a href="http://www.belfasttelegraph.co.uk/lifestyle/technology-gadgets/google-condemned-for-lifting-uk-ban-on-gambling-ads-14006748.html" target="_new">are being attacked by a variety of different groups</a>, including the Church of England, claiming that the global financial crisis could be made worse if Google drives people to gamble.
<br /><br />
Can we take a break here and inject a little common sense into the discussion?  Google is not the guilty party here.
<br /><br />
An <i>ad</i> on Google is not going to drive someone to gamble.  If someone wants to do some online gambling, they'll find a way to do it.  If they do a search on online gambling, they'll find plenty of sites in the organic results, let alone the paid spots.  And it means they <i>sought it out</i>.  This isn't to deny that some people have a problem with being unable to moderate their gambling, but to blame it on Google ads is simply grandstanding over something that has no impact on the issue.<br /><br /><a href="http://www.techdirt.com/articles/20081017/0211472570.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20081017/0211472570.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20081017/0211472570.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>get-real</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20081017/0211472570</wfw:commentRss>
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