A loophole in the law allows online casinos to advertise on Canadian television by only featuring the free games offered by the website. Recent moves towards strengthening regulations for online and offline gambling are likely to lead to a complete ban on online casino advertising. The television regulatory board is under increasing pressure to initiate such a ban and prevent all online casino related material from being aired.

Many online casinos are adept at circumnavigating advertising bans. Perhaps the most widely publicised is Golden Palace, which purchases weird objects for prices bound to attract media attention. The Kahnawake reservation, just 10km south of Montreal on the St Lawrence River (Kahnawá:ke means ‘on the rapids’), is the home of the Golden Palace online casino and about 20 of the most visited gambling websites. In June 1996 the Kahnawake Gaming Commission was established to control and regulate gaming and gaming related activities conducted within and from the Mohawk Territory of Kahnawake.

Canadian officials claim that only provincial governments in Canada have the right to licence and oversee gaming activities but in nine years the government has failed to act against the tribe. In 1999, three years after its establishment, the Gaming Commission enacted its Regulations Concerning Interactive Gaming. These regulations, drawn up with the help of Frank Catania who was formerly director of the New Jersey Division of Gaming Enforcement, were designed to ensure that only suitable persons and entities are permitted to operate from Kahnawake, that games offer fair play and that winners are paid. Operational monitoring and audits are conducted on a monthly basis to ensure continuing compliance.

Kahnawake jurisdiction rights may yet be contested in the courts although the tribe claims it is not subject to negotiation of compromise. Should the Canadian government decide to prosecute, the Kahnawake may have to prove that commercial gaming involving non-tribal members was part of its cultural tradition before the European settlers arrived. The tribe contends that the Canadian constitution recognizes its ancient right to operate casinos although the document does not refer specifically to gambling.

The United States is enmeshed in its own controversy on the question of online gambling and advertising. Recognised as having more online gamblers than any other nation, who are the largest contributors to the estimated US$7.5 billion market expected to more than double over the next five years, the US Department of Justice continues its efforts to outlaw online gambling. Skirmishes with the World Trade Organization (WTO), which found in favour of Antigua over gambling advertising double standards in the US, finally led to both sides being able to claim victory.

Earlier this month Casino City, Inc filed a complaint against the US Department of Justice seeking a declaratory judgement that advertising online casinos and sportsbooks is constitutionally protected free speech under the First Ammendment. Letters sent by the DoJ in 2003 threatened prosecution of individuals accepting such advertisements and then subpoenas were issued seeking detailed information on their purchase and placement. In its First Amendment Complaint Overview the most popular gaming website states, “Casino City believes the actions taken by the Department of Justice are wrong, and that they threaten our freedom of speech in violation of the First Amendment of the United States Constitution. We also believe that matters of law such as this are properly decided by the courts, and not by government administrators interpreting laws in a way that many experts claim is flawed. Consequently, we have today asked the courts to determine our rights, and those of others similarly situated, under the United States Constitution.”

As the arguments over the legality of online gambling continue, the numbers of players increase. Poker popularity has had much to do with the growth of gambling on the Internet with television programmes, high visibility tournaments and even television channels devoted to the game. With countries such as the UK planning to regulate online gambling activity and with online operators on the Stock Exchange, an outright ban on online gambling would seem to be unworkable. Advertising is an even thornier problem for lawmakers as some forms of gambling, such as casinos, freely advertise. Making online gambling an illegal activity would mean that advertising it would be illegal, but so far the US – perhaps with an eye to history and the prohibition laws - has failed to pass any such legislation and the online gamblers continue to play. (E-08.15.05)

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