To: Gator who wrote (3775 ) 7/26/1999 10:40:00 AM From: Burgoo Respond to of 8858
Judge: Internet Gambling Co. Broke NY Laws BY: By Edward W. Lempinen. STAFF WRITER EDITION: NASSAU AND SUFFOLK SECTION: News DATE: 07-24-1999 A13 A Bohemia-based company that made Internet gambling available to New Yorkers from a foreign Web site broke state and federal laws and could be subject to thousands of dollars in fines, a State Supreme Court justice has ruled. The decision, signed Thursday by Justice Charles Edward Ramos and released Friday, is apparently the first state court ruling on the growing business of interactive gambling on an array of casino games and sports events. In his 20-page decision, Ramos sided squarely with the office of state Attorney General Eliot Spitzer against World Interactive Gaming Corp. and its Golden Chips Casino, an Internet operation on the Caribbean island of Antigua. Attorney Anthony Colleluori, representing the company, said the ruling would be appealed. Because the courts are charting their way through unexplored legal terrain, he said, rulings from higher courts will be needed to clarify an area that pre-Internet laws never envisioned. Experts have predicted Internet gambling could grow into a $10-billion industry. The Federal Trade Commission also has filed suit against World Interactive, Colleluori said, and the legal pressure has forced the company and Chief Executive Officer Jeffrey Burton to suspend operations. The state's case focused on whether World Interactive misled investors when it solicited start-up money, and second, whether it was subject to New York laws if its Internet server is in Antigua, where such gambling is legal. Ramos ruled that if New York residents at their home computers signed on to the company's Web site and placed a bet, the gambling took place in New York, not in Antigua. Though the company insisted it tried to bar New Yorkers from using its service, the judge rejected that argument. Ramos awarded penalties and court costs to Spitzer's office, and said the amount would be set at a later hearing. Oh well guys, I guess that private is going to be a little more difficult to get done. link is longlibrary.newsday.com