Ashcroft Called To Testify on Anti-E-Gambling Ad Campaign

Attorney General John Ashcroft and U.S. Attorney David Dugas have been summoned to testify before a federal court, over free speech implications for the Justice Department's apparent crusade against online gambling advertisements.

Casino City has filed a complaint against Justice looking for a declaratory judgment that advertising online casinos and sites is protected First Amendment speech. Justice has sent a number of reputedly threatening letters to the National Association of Broadcasters and others and subpoenaed several media outlets over the letters, which Casino City said "have had a chilling effect upon free speech."

That effect, the company said, includes popular sites like Yahoo and Google no longer accepting online gaming advertising.

Ashcroft and Dugas have 30 days to answer the complaint. "[I]t's possible and hopeful, so far as my client is concerned, that the Department of Justice will say 'We didn't mean to threaten organizations that are engaged in the type of advertising that your client is,' and that would be fine with us," said Casino City attorney Barry Richard in a statement. "It would clear the air for those people who have been and would like to continue to do this."

Casino City and the Justice Department have until December 2 to file a status report on the case, with a scheduling conference set for December 16.

"A portion of Casino City's revenues are derived from the sale and running of advertisements on its informational internet sites for lawful overseas companies that offer online casino or sports book gambling," the company said in its formal complaint. "The sale and placement of the advertisements is not contrary to the law of Louisiana.

"The advertisements are not misleading and concern lawful activity," the complaint continued. "Casino City does not conduct or participate in online casino or sports book activities. Casino City does not knowingly accept, in payment for running online casino or sports book advertisements, proceeds that come from illegal bets, deposits or wagers placed by persons located in the United States or anywhere world-wide, and the company has taken reasonable steps to ensure that such proceeds are not received."

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