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Sporting News Settles Case on Gambling Ads

24 Jan 2006

MISSOURI -- As reported by the New York Times: "The Sporting News, one of the nation's oldest sports-centered media companies, has entered into a $7.2 million settlement to resolve accusations that it promoted Internet gambling by publishing and broadcasting advertisements for online casinos overseas, the Department of Justice said yesterday.

"Under the settlement, The Sporting News, which is operated by Vulcan Sports Media, a company owned by the Microsoft co-founder Paul G. Allen, has agreed to pay a $4.2 million fine. It will also complete a three-year public service campaign, valued at $3 million, to educate people about illegal Internet and telephone gambling.

"The agreement is the latest development in an Internet gambling investigation led by the United States attorney's office in the Eastern District of Missouri. Under the investigation, begun in 2003, federal prosecutors have reached settlements with a handful of American media companies - and sought information from dozens of others under a legal theory that publishers and broadcasters are guilty of promoting and profiting from Internet gambling by running ads for it.

"...In a statement, The Sporting News said that as part of the settlement it had neither admitted nor denied its legal liability..."

 
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