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Department of Justice Letter to National Association of Broadcasters.
The Department of Justice sent a warning letter to the National Association of Broadcasters on June 11, 2003, setting forth the Department's view that Internet gambling and offshore sportsbooks operations are illegal. Here is the text of that letter:


"As you are no doubt aware. advertisements for Internet gambling and offshore sportsbook operations are ubiquitous on the Internet, in print ads. and over the radio and television. The sheer volume of advertisements for offshore sports books and online casinos is troubling because it misleads the public in the United States into believing that such gambling is legal. when in fact, it is not. Because of the possibility that some of your organization's members may be accepting money to place such advertisements, the Department of Justice, as a public service, would like you to be aware that the entities and individuals placing these advertisements may be violating various state and federal laws and that entities and individuals that accept and run such advertisements may be aiding and abetting these illegal activities.

"With very few exceptions limited to licensed sportsbook operations in Nevada, state and federal laws prohibit the operation of sportsbooks and Internet gambling within the United States, whether or not such operations are based offshore. United States Attorneys' Offices in several districts have successfully prosecuted offshore sportsbookmaking and Internet gambling operations, and the Department of Justice win [sic.] continue to pursue such cases.

"Notwithstanding their frequent claims of legitimacy, Internet gambling and offshore sportsbook operations that accept bets from customers in the United States violate Sections 1084, 1952, and 1955 of Title 18 of the United States Code, each of which is a Class E felony. Additionally, pursuant to Title 18, United States Code, Section 2, any person or entity who aids or abets in the commission of any of the above-listed offenses is punishable as a principal violator of those statutes. The Department of Justice is responsible for enforcing these statutes. and we reserve the right to prosecute violators of the law.

"Broadcasters and other media outlets should know of the illegality of offshore sportsbook and Internet gambling operations since, presumably, they would not run advertisements for illegal narcotics sales, prostitution, child pornography or other prohibited activities. We'd appreciate it if you would forward this public service message to all of your member organizations which may be running such advertisements, so that they may consult with their counsel or take whatever actions they deem appropriate."

Grand Jury Investigation
In the same time frame as the DOJ letter, the United States Attorney for the Eastern District of Missouri (St. Louis) was given the task to investigate criminal violations like those mentioned in the DOJ letter. See US Court Subpoenas Gambling Portals, Companies Aiding Internet Gambling Feel U.S. Pressure and US govt puts the squeeze on online gambling. Subpoenas were issued to a number of media outlets in connection with the investigations made by a grand jury impaneled by that U.S. Attorney. As an apparent result, in the first half of 2004 several media outlets stopped accepting online gambling ads. These included Infinity Broadcasting, Clear Channel Communications and Discovery Networks, the parent of the Travel Channel.