Past Promotion of Illegal Gambling Costs the Sporting News $7.2 Million, Says U.S. Attorney

22 January 2006

Vulcan Sports Media, Inc., doing business as The Sporting News, entered into a $7.2 million settlement with the United States to resolve claims that they promoted illegal gambling, United States Attorney Catherine Hanaway announced today.

As part of the $7.2 million, The Sporting News paid $4.2 million to the United States late Thursday, (January 19), and will voluntarily, and at its own expense, initiate and complete a three year campaign of public service advertising designed to inform the public of the illegality in the United States of commercial internet and telephonic gambling. The value of the public service campaign is $1 million per year, for a total of $3 million.

The Settlement Agreement resolves claims arising from The Sporting News' conduct between the Spring 2000 and December 2003. The Agreement sets out that over this three-year period, The Sporting News accepted fees in exchange for advertising illegal internet and telephonic gambling enterprises to its United States print, internet and radio media audiences. The Sporting News was aware that its conduct and the fees it accepted in exchange for its conduct were proceeds of illegal gambling, which was aiding and promoting illegal conduct.

"Taking the view of illegal wagering as mere 'entertainment' ignores its' plain illegality, as well as the significant and well-documented social problems associated with unregulated commercial gambling," said Hanaway. "This office, together with personnel of the Organized Crime Racketeering Section of the United States Department of Justice, will continue to assist the investigative efforts of the Federal Bureau of Investigation and Internal Revenue Service-Criminal Investigation."

"The operation of a commercial gambling business where bets or wagers are transmitted in interstate or foreign commerce is illegal under federal law, and that includes Internet communications," added Hanaway.

The Settlement Agreement provides that if The Sporting News satisfactorily performs its obligations, the United States will not seek to impose further civil or criminal liability upon Vulcan Sports Media, Inc., doing business as the Sporting News. Individual criminal or civil liability is unaffected by the Agreement.

The Sporting News' headquarters are in suburban St. Louis, Missouri, from which it oversees its nationwide system of sports- oriented print, internet and radio advertising outlets.

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Source: usnewswire

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