FC: US prosecutes operator of legal overseas gambling site

[Declan McCullagh <declan () well com>]

Unfortunately this article is much too vague. For instance, where is the 
trial taking place? Okay, the gambling-site-guy was indicted, but is living 
in Antigua or under arrest in the US? If not, what's the point, besides 
making one?

It also doesn't explictly mention this important bit of info:
  http://www.wsex.com/about/faq.html
   3.Are you licensed?
     Yes. World Sports Exchange is licensed by the government of
     Antigua and Barbuda, and regulated by the Gaming
     Commission of Antigua and Barbuda. To contact the
     government of Antigua, please call (268) 460-5552. View our
     License

I see at least one politechnial is quoted in the article, so maybe someone 
can illuminate this.

-Declan

***********

http://news.ft.com/ft/gx.cgi/ftc?pagename=View&c=Article&cid=FT5VDC7YM4C&live=true&tagid=ZZZ2H6COD0C

Online gambling case underway

By Patti Waldmeir and Dan Lerner in Washington - 15 Feb 2000 03:40GMT

The ability of national governments to regulate borderless activities on the
internet will face an important legal test starting on Monday, when jury
selection begins in a US criminal trial challenging the legality of online
gambling.
In the first federal prosecution of a sports gambling operation on the
internet, Jay Cohen, a former stockbroker who runs World Sports Exchange, an
online betting operation in Antigua, is charged with violating a 40-year-old
law against using the telephone to gamble across state or federal borders.
Mr Cohen was indicted after undercover FBI agents in New York placed bets
with his company using its web site alluringly named www.wsex.com and its
toll-free telephone number.
The case could affect the future of online gaming, a rapidly growing
business - worldwide revenues are estimated at $1bn. One internet research
group projects $3bn in revenues by 2002.
...
In legal documents drawn up for the case, the US attorney says: "Where a bet
is 'placed ' physically, conceptually or otherwise simply does not matter
for purposes of prosecution." The crime occurs when an "interstate wire
communication facility," like the internet, is used to transmit the wager.
As for jurisdiction, the US attorney argues, whenever US citizens are
harmed, extraterritorial action is justified.
...

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