Three top Internet players in the United States have agreed to a combined $31.5 million settlement with the U.S. government for accepting ads promoting illegal online gambling, according to the U.S. Attorney for eastern Missouri.

The United States Attorney’s Office said a deal was reached with Google, Microsoft (News - Alert) and Yahoo over Department of Justice (DOJ) claims the companies had "aided and abetted" the promotion of illegal gambling on their Web sites.

The three companies all agreed to varying degrees of punitive damages pending the extent of their involvement in accepting gambling ads.

Microsoft will pay $21 million, of which $4.5 million will go to the United States and, $7.5 million to the International Center for Missing and Exploited Children (ICMEC).

Redmond also agreed to provide $9 million to an online, public service advertising campaign to inform and educate Ineternet users that online gambling enterprises are illegal under U.S. law.

The Google (News - Alert) settlement of $3 million resolves claims, which they also neither contest nor admit receiving payments from on-line gambling businesses for advertising on-line gambling between 1997 and June 2007. And Yahoo! will pay of $7.5 million, niether contesting nor admitting they received payments from on-line gambling businesses for advertising on-line gambling between 1997 and December 2007.

“These sums add to the over $40 million in forfeitures and back taxes this office has already recovered in recent years from operators of these remote-control illegal gambling enterprises,” said Hanaway. “Honest taxpayers and gambling industry personnel who do follow the law suffer from those who promote illegal online behavior,” said United States Attorney Catherine L. Hanaway in a statement.

Under terms of the deal, the companies do not have to make any admission of guilt on the charges by the companies, nor do they represent a contesting of the charges, a common arrangement in settlement situations.

“Illegal Internet gaming operations continue to be areas of IRS compliance concern,” stated James D. Vickery, Special Agent in Charge, IRS-Criminal Investigation.  “CI will continue to play an enforcement role in the illegal gaming industry and to support regulatory and legislative initiatives aimed at eliminating an environment conducive to illegal gambling.”

Tim Gray is a Web Editor for TMCnet, covering news in the IP communications, call center and customer relationship management industries. To see more of his articles, please visit Tim Gray’s columnist page.

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