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The easiest way to get name recognition for a product in today's
media-saturated world is to get a famous name to sign on as an endorser. This
is an old practice whose effectiveness hasn't worn off over the years - people
form attachments to their favorite celebrities, and the hope in having these
celebrities endorse products is that people's attachments will carry over in
the form of buying the product. Even if only a small fraction of people buy
products because of endorsements, the relatively low-cost advertising method
usually pays off in the end. It's no surprise, therefore, that online poker
and gambling sites have taken to having celebrities endorse their products.
Recently, however, the legality of such endorsements in the United States has
come under question.
According to some experts, celebrities who endorse offshore casinos may be
legally liable for aiding and abetting the offshore companies who are
providing unlicensed gambling within the U.S. The government contends that
online wagering of any sort is illegal because of an antiquated law - the 1961
Wire Act, enacted by the U.S. Congress to prevent the use of telephone lines
in the business of sports betting. However, the application of this law to
internet wagering is uncertain because it appears to have been written with a
very narrow target in mind. In fact, in recent years Senator John Kyl of
Arizona has introduced bills to ban online gambling within the U.S., lending
credence to the interpretation that the current laws don't prohibit online
gambling.
Right now the consequences for celebrity endorsers are murky at best. So far
nobody has been prosecuted for endorsing offshore casinos. And for the
government to begin prosecutions, they would either have to pick a scapegoat
or arrest every single celebrity who has endorsed a company that allows
Americans to place wagers online. The range of celebrities who have jumped on
board is a wide one, ranging from athletes (Jim Kelly of the Buffalo Bills and
Dennis Rodman of the Chicago Bulls) to models (Victoria's Secret model Brooke
Burke) to actors (Tom Arnold and James Woods) and beyond. One of the most
prominent offshore casino endorsers was once a government official himself -
former professional wrestler and Governor of Minnesota, Jesse Ventura. It's
hard to imagine that a significant portion of the American public wouldn't
oppose such a round-up of celebrities who are simply lending their names to a
service, and the outcry against the prosecution of a scapegoat would likely be
even greater.
Ventura's take is one likely to be popular with anyone who enjoys gambling. He
maintains that millions of Americans want to place bets online, whether on
sports or horse races or poker, and there's no reason to prevent them from
doing so in the land of the free. The logic behind such assertions is hard to
deny, but thanks to the patchwork U.S. laws regarding gambling, logic may not
be enough to protect the offshore casinos' celebrity endorsers. In 2004 the
U.S. Attorney's office in the eastern district of Missouri promised it would
pursue online sports betting enterprises as well as those who aided them in
providing their services within the U.S. Because the companies providing
online betting are much more difficult to prosecute than American citizens,
it's very easy to see the Justice Department settling for hanging B-list
celebrities out to dry. The investigation launched by the eastern Missouri
U.S. Attorney is ongoing, suggesting that the evidence that celebrity
endorsers are breaking the law is scant at best. However, the delay between
the announcement of the investigation and any conclusion to it could mean that
the Justice Department will try to use circuitous legal reasoning to convince
a judge to set a new precedent against online gambling.
In the meantime, celebrities continue to sign deals endorsing online poker
rooms and sportsbooks. Robert Iler, who plays Tony Soprano's son on the hit
HBO series "The Sopranos," began endorsing the online poker room betcris.com
this month after being caught in a police raid at an underground New York City
card room. The company signed him to promote online poker as the safest way of
playing the game. It may eventually turn out that online gambling is just as
dangerous for him as the underground games in New York, but for now things
continue to move along much as they have since the beginning of the poker
boom.
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