Google, Yahoo, and Microsoft Settle With The DOJ Over Gambling Ads
December 22, 2007
Online search giants Google, Yahoo, and Microsoft have agreed to settle with the United States Department of Justice over allegations that they “aided and abetted” illegal gambling companies and web sites by allowing them to advertise on their sites.
Although the “Big 3” have prohibited gambling advertisements since 2004, the D.O.J. was unrelenting in their pursuit of financial penalties. Even though the Google, Yahoo, and Microsoft didn’t admit publicly to the charges that they were accused of, they also did not contest them either.
Under the settlement, all three companies will pay a total of $31.5 million, with most of the fines going to charitable organizations, anti-gambling ad campaigns, and of course the U.S. government.
Microsoft paid the most out of the settlement, forking over $21 million alone. Yahoo had the 2nd biggest penalty, shelling out $7.5 million. And Google rounded out the fines by paying out $3 million. These financial penalties paint a clear picture on how the United States government will be treating American companies who choose to promote or advertise online gambling sites.
U.S. District Attorney Catherine Hanaway, who was the lead council on behalf of the D.O.J. during November’s House Judiciary Hearing on online gambling, is also the person responsible for bringing forth this most recent lawsuit against Google, Yahoo, and Microsoft. It is unclear whether her future agenda will stop here, or if there are more lawsuits coming against other companies who are performing the same practices in the United States.
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