Gambling Affiliates Beware!

[Linda Buquet]

Gambling Affiliates Beware! Read the law highlighted below in bold! The 2nd US arrest of an Internet gaming executive this summer is adding to fears the US is cracking down on the lucrative industry. This latest arrest dumped stock prices on Thursday that wiped out over $1.5 billion from the market value of the online gaming sector.

Peter Dicks, non-executive chairman of Sportingbet, was detained by U.S. authorities Thursday while visiting the U.S. because of a breach of the 1961 Wire Act that explicitly forbids businesses from using a wire communication facility to assist in placing bets on "any sporting event or contest." Sportingbet is one of the largest online betting sites and has SEVERAL affiliate programs. BetonSports CEO David Carruthers was arrested back in July and the company has since closed.

"This arrest highlights the US Department of Justice is going after online gaming companies by arresting their board members," said a London analyst who declined to be named. Another analyst says that no gaming execs are safe entering the US.

So why am I writing about this on an affiliate blog? I have 2 concerns for gambling affiliates. 1) If an online gaming company gets busted, affiliates could likely not be paid. BetonSports went under after their CEO's bust. I don't know if their affiliates were paid. 2) Read the law below and tell me if you think this could apply to an affiliate web site. It's a stretch, I know but there is a major crack down so I would not risk promoting gambling on any US web site. The law below is written so broadly that even lotto sites and other contest sites could technically be at risk.

"Dicks and his company ran afoul a law that prohibits "gambling by computer."

"That law applies to anyone who "designs, develops, manages, supervises, maintains, provides, or produces any computer services, computer system, computer network, computer software, or any server providing a Home Page, Web Site, or any other product accessing the Internet, World Wide Web, or any part thereof offering to any client for the primary purpose of the conducting as a business of any game, contest, lottery, or contrivance whereby a person risks the loss of anything of value in order to realize a profit." This is not, it must be said, a narrowly-written piece of legislation."

Here are other news headlines about the Sportingbet case.

What do you think?

[wildstuff]

Thats why i have been getting away from promoting gambling sites. Used to be about 50% of my efforts went to gambling affiliates.