US Online Gambling Crackdown Ignores Reality TV Show Gambling

These contests are unregulated lotteries, games of chance, where no level of skill is needed to become a winner.

We really don't want to get picky about illegal gaming, but we believe that the DOJ is concentrating their efforts on a single area of this issue and not the complete picture.

Understandably, the government is pursuing cases that are high profile and center around Internet gambling to deter the masses from participating in this activity. Why is it that they are not seeking to prosecute other types of gambling that take place over phone lines?

We are all aware that one can play games such as poker, slots, roulette and various other table games over the Internet and that these are the types of gambling that are being focused on by the DoJ. But there are more, very lucrative forms of gambling, that are taking place over phone lines and the Internet that are being ignored.

Reality shows on television, which are promoted by major networks in the U.S., have been allowing people to call into certain phone numbers to vote for certain people, or things, for a chance to win something, be it a trip to some exotic location, a plasma TV, or variety of other prizes. Those phone calls cost a fee, which constitutes a monetary figure that can be related to making a wager. Even the popular reality show, American Idol, encourages viewers to call, and call often to vote for their choice of a contestant to win the event. This is not a skill event, but one of popularity.

This is in clear violation of the 1961 Wire Act which prohibits the use of telecommunication devices to make a wager on the outcome of someone else's effort, or a more likely, a game of chance.

These contests are unregulated lotteries, games of chance, where no level of skill is needed to become a winner. Telecoms often charge a fee to those placing the vote calls, which, they take a percentage of, then remit the balance to the sponsor. Clearly this is gambling.

One can make a case that even free promotions form companies such a Coca-Cola, Pepsi, Taco-Bell and other major corporations that encourage customers to enter into drawings by submitting an entry into a contest by sending in something via the postal service could constitute gambling, even if there is no monetary entry fee, there is the cost of postage.

These contests clearly have no skill involved, just luck of the draw.

Even popular shows such as the Wheel of Fortune encourage viewers to enter into online contests by signing up and becoming an at home contestant. There are costs associated with ones ability to enter these types of contests. There is the cost of having a computer, and Internet connection, electricity to operate those items and so on. Yet these types of gambling are allowed.

This is a clear case of selective enforcement. One type of gambling is deemed to be immoral by the government (only if it is done online), the other is acceptable.

The big three of Internet searches were made to pay approx. $41 million in fines by the DOJ for allowing ads on their search engines that in some way promoted gambling. It will be interesting to see if the DOJ will now go after these other forms of gambling that generate multiple millions, possible billions of dollars in profits to the telecoms, media outlets, large corporations, and other beneficiaries.