Gaming Affiliate Risk Update | Pokerati

This is further to last week?s post about affiliates @Pokerati.?It?s a good news?bad news update.

The good news?at least, from an affiliate perspective?is that there appears to be no federal criminal indictment or civil complaint currently outstanding against the previously-referenced affiliate. The actions taken thus far seem to be part of an ongoing nvestigation by federal authorities.

The bad news is that federal investigators clearly believe that certain affiliate marketing constitutes criminal activity. This won?t surprise many readers. Without commenting on the actions or circumstances of this affiliate, such a posture may not be unreasonable, depending on the nature of the marketing activities undertaken, the basis of compensation for affiliate activities, and the alleged underlying state law violation(s). (Remember that the Travel Act and the Illegal Gambling Business Act require a predicate state crime to be engaged.) As to this particular affiliate investigation, I do not yet know the purported state?law violation.

US-facing affiliate businesses, in particular, will want to take note of and continue to follow what is happening in Ohio to see what implications the investigation may have for their businesses.?This is the first time I?m aware of a specific affiliate being targeted in this kind of investigation relying on these provisions of Title 18. Whether this investigation ripens into something larger or does not, certain gaming affiliates should be aware of potentially heightened federal scrutiny and risk in the sector.

Source: http://pokerati.com/2012/08/gaming-affiliate-risk-update/

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