UK:
US Blow to Online Sports Gambling
04 October 2002
Herbert Smith Freehills
To print this article, all you need is to be registered or login on Mondaq.com.
A recent US decision has dealt a blow to two
English and Isle of Man gambling companies. One of the companies, American
Sports Limited which is owned by Gary Bowman, had advertised its sports
gambling business on the internet, and attracted the vast majority of its
business from American and Canadian punters who were placing bets on North
American sports such as basketball and professional football. American
gamblers wishing to place such a bet had to set up an account by wiring
funds to an account in New Jersey, which was controlled by a New
Jersey-based company. They then had to call England using an international
toll-free telephone number to confirm their deposits of funds and place
their bets. The New Jersey company kept American Sports Limited up to date
about the balance of each gambler’s account, and also forwarded the money
to one of Mr Bowman’s companies outside of the US.
American Sports Limited argued that American gamblers were actually
placing their bets in England where the bets were accepted and where
gambling is legal. However the US court found that it did have
jurisdiction to apply U.S gambling law to the case, and decided that the
New Jersey company had violated New Jersey law by promoting gambling. It
also held that the FBI’s seizure of the contents of two accounts in New
Jersey had therefore been legal.
The case is a timely reminder to companies engaging in e-commerce in
multiple jurisdictions that they need to consider the possibility that
they will be required to comply with the laws in each of those
jurisdictions and not just the laws of the country in which the company is
physically located.
© Herbert Smith 2002
The content of this article does not constitute legal advice and should not be relied on as such. Specific advice should be sought about your specific circumstances.
For more information on this or other Herbert Smith publications, please email us.
POPULAR ARTICLES ON: Media, Telecoms, IT, Entertainment from UK
Gaming M&A Trends And Predictions
Norton Rose Fulbright
Amidst a challenging macroeconomic climate, M&A activity in the gaming sector has returned to pre-COVID levels. While M&A deal value technically reached...
ASA Revises Calvin Klein Ruling
Osborne Clarke
On 6 March 2024, the ASA after careful considerations, republished its ruling on Calvin Klein's April 2023 marketing campaign.