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Web Engines Plan to End Online Ads for Gambling

4/5/2004 (Matt Richtel, New York Times) Google and Yahoo, two of the most widely used Web search engines, have decided to stop running advertisements for online casinos, a shift that could thwart the growth of Internet gambling.

The move, which the companies said would take effect by the end of April, comes as federal prosecutors are threatening action against American companies that do business with Internet casinos that are based abroad.

The prosecutors are arguing that the American companies are "aiding and abetting" offshore Internet casinos, whose operations are illegal in the United States. Prosecutors started a grand jury investigation last year, issuing subpoenas to American broadcasters, publishers and Web sites that run advertisements for online casinos.

Executives from Yahoo, based in Sunnyvale, Calif., and Google, based in Mountain View, Calif., declined to say whether they have been subjects of the investigation. The fact that each company announced the change in policy on Friday appeared to be coincidental. Jennifer Stephens, a spokeswoman for Overture, a Yahoo subsidiary that sells paid sponsored links for Yahoo, said the policy change was the result of a "lack of clarity" in the legal and regulatory environment.
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