Google, Microsoft, Yahoo fined to settle claims of online gambling

WASHINGTON, Dec. 20 (Xinhua) -- Google Inc, Microsoft Corp and Yahoo Inc on Wednesday agreed to pay US$31.5 million to resolve accusations that they had promoted illegal Internet gambling, according to US Department of Justice quoted by media reports Thursday.

The companies were accused of receiving money from online gambling businesses to advertise illegal betting from 1997 through 2007.

Microsoft will pay US$21 million, Google will pay US$3 million and Yahoo will pay US$7.5 million, the department said in a news release.

However the three companies will neither admit nor contest charges that they received advertising money from online-gambling operations, as part of the settlement.

The settlement was announced by Catharine L. Hanaway, US attorney for the Eastern District of Missouri. "These fines add to the over US$40 million in forfeitures and back taxes this office has already recovered in recent years from operators of these remote control illegal gambling enterprises," said Hanaway.

The settlement involved corporate conduct the government found in violation of the Federal Wire Wager Act, federal wagering excise tax laws, and various states' statutes and municipal laws prohibiting gambling

The Microsoft settlement includes a US$4.5 million fine and a US$7.5 million contribution to the International Center for Missing and Exploited Children.

The company also agreed to create a US$9 million online advertising campaign, focused on young people, saying that online gambling is illegal under US law. The campaign will run for three years starting from 2008.

Yahoo will provide US$4.5 million to a public-service campaign designed to inform users that operators and participants in online or telephone-based sports and casino-type gambling in the US may be subject to arrest and prosecution.