Attorney General's News Release

May 23, 1997

Judge rules Internet business can't offer on-line gambling to Missourians, must pay $66,000 in penalties and costs

Jefferson City, Mo. — A Missouri circuit judge today ordered a company that offers gambling on-line to stop taking bets from Missourians and pay $66,050 in penalties and costs to the state. It is the first successful action in the country stopping an operating on-line gambling casino.

Attorney General Jay Nixon had asked the Jackson County Circuit Court to issue the permanent injunction against Interactive Gaming & Communications Corp. (IGC), of Blue Bell, Pa. Nixon said IGC violated state gambling and consumer laws by misrepresenting to an undercover investigator that it was legal to operate such games in Missouri and then accepting a bet from the investigator.

"Missouri law is quite clear about the restricted and highly regulated forms of gambling that are legal in this state," Nixon said. "By marketing and offering gambling to any Missourian who has Internet access, IGC violated that law."

Judge Stanley J. Murphy heard evidence from the state at an injunction hearing in Kansas City yesterday before issuing his order. IGC refused to appear at the hearing. The provisions of Judge Murphy's order include:

• IGC cannot market, offer or promote casino gambling in Missouri over the Internet or other means.
• The company cannot represent that its gambling services are legal in Missouri or omit that fact.
• IGC must immediately reject and refuse all applications from Missourians to participate in its online gambling and return any money received from Missourians. The company must post a prominent notice on its website stating that it is under a court order prohibiting it from taking applications or funds from Missourians.
• IGC also has been ordered to pay $22,000 in civil penalties to the state, $10,000 to the Missouri Merchandising Practices Revolving Fund and $34,050 to the state for the costs of investigation and prosecution.

In order to ensure IGC's compliance with the court order, the judge ordered the company to provide complete access to all its records, documents and other information for periodic audits by the Attorney General's Office. Any costs associated with the audits would be borne by IGC.

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to the Communications Office.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818