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Publication paid fine to DoJ to pre-empt sales problems
Sports911 carried an interesting sequel report this week on the $7 million 'settlement' that US publication The Sporting News paid earlier this year after it stopped taking advertisements from online gambling companies as a consequence of Department of Justice intimidatory letters.
Sources close to 911 have apparently informed publisher Chris Costigan that there was never a federal case against the Sporting News.
"What transpired is that the owner was concerned about the potential liability that its past may have on the sale price of Sporting News," stated the source, who wished to remain anonymous.
"So the Sporting News went to the DoJ and asked them what it would take to remove this potential liability from their books. They asked how much. The settlement that was reached was not a result of the DOJ pursuing the publishing group, instead it was simply some pre-sale manoeuvering."
In the wake of the settlement the Casino City First Amendment challenge to the DoJ was discontinued. That action sought a declaratory judgement on the actions taken by authorities in warning US media that accepting online gambling advertisement might be illegal.
