Electronic Arts to stop advertising for online casino on its Web site
Electronic Arts, the video game giant, said Friday it had decided to stop advertising for Internet casinos on its Web site, delivering another blow to the industry of online gambling. The decision, which the company said not to take effect soon, follows announcements in recent months by Google and Yahoo, the Internet titans, and some media companies like Discovery Networks and Clear Channel Communications, who said they have stopped taking advertisements for online casinos that offer sports betting, virtual poker and other games.
These initiatives follow a federal investigation on the activities of U.S. companies doing business with offshore Internet casinos. The Department of Justice has argued that these companies could support and assist the casinos, which are considered by the department as illegal operations under federal law.
Forward Slash online casino company
This week, Electronic Arts informed Forward Slash, a South Africa company, no longer run ads for online casinos on a Web site of Electronic Arts, which allows visitors to play interactive games without charge.
Electronic Arts, based in Redwood City, California, has not been a subject of the investigation, it has not been contacted by the enforcement of any law in the context of online gambling, said Jeffrey Brown, a company spokesman.
Yet the company was aware of developments, "said Brown, and decided this month to stop advertising rather than risk the wrath of the enforcement of federal law. He added that the company does not believe he did anything wrong in publishing the ads.
"We do not believe that the functioning of the advertisements is illegal", he said. "We have been looking on the road and thought this could become a political and legal problem for us."
Online casino sites
Mr. Brown refused to give the size of the online casino advertising deal that Electronic Arts canceled, but it is characterized as a contract valued semestrielle less than $ 5 million.'' Electronic Arts is one of the online casino sites. Mr. Brown said Electronic Arts did not advertise on sites that offer interactive versions of its popular sports games like football.
He said that the money represents a tiny fraction of Electronic Arts' $ 3 billion in annual revenues and not worth the trouble, echoing the comments of leaders of other societies that have abandoned the game off ads.
"We decided the small source of income does not justify the issue of possible", said Mr. Brown. As part of federal efforts to reduce online gambling, United States marshals in April seized some $ 3 million in advertising products made by a foreign casino to Discovery Networks. Last year the government launched a grand jury investigation, led by the United States Attorney's office St. Louis, to look into American companies working with overseas casinos.
The Department of Justice declined to comment on the investigation. Mr. Walters said it was difficult to say how many companies have ceased to operate staats casino ads. A sports betting online, based in Costa Rica, said in an interview last month that it was always to find some media companies, including local radio stations , who were willing to accept his ads.