Online Gambling. Time to Change Legal Bytes to Legal Bets?

On December 23, 2011 the U.S. Department of Justice reversed its decade long position on the applicability of the U.S. Wire Act to online gambling that does not involve sports betting. In previous years, prosecutions were brought against any form of online gambling based on their interpretation of the Wire Act. This opinion, reverses the long standing position and may well clear the way for States to become more aggressive in legislatively enabling intra-State online gaming and who knows, perhaps the Federal government will consider licensing and regulation permitted online gambling. This is not simply big news within the United States. Gaming and gambling operators around the world who may already be working with governments on their lottery initiatives and many other companies who have no presence in the United States may now be looking to establish a foothold and ultimately a major presence in the U.S. Similarly, U.S. casino and gaming operators already licensed, may sense the opportunity for foreign investment and the injection of new capital, new expertise and a more global platform.

Rimon and its interdisciplinary team of experienced gaming transactional, e-Commerce, payment, privacy, technology and marketing lawyers have their eye on this new development that has the potential to energize the data-intensive, multi-billion dollar online gambling industry in the U.S. market. Joe Rosenbaum, Ramsey Hanna and Joshua Marker have authored a Client Alert which you can read here:  U.S. Federal Government Reverses its Stance on Online Gaming.

Happy New Year Wishes for 2011


About 4,000 years ago, the ancient Babylonians celebrated the New Year upon seeing the first new moon after the vernal equinox. Today, festivities in New York’s Times Square are televised around the world. Although my traditions don’t date back nearly as far as either of these, each year at this time I try to create a Legal Bytes piece intended to be more thoughtful and philosophical. So this posting will contain no hypertext links to distract you; it will not have citations to offer more information about a snippet; nor will it dazzle you with factoids or intrigue you with today’s news. It’s just me philosophizing, about where we’ve been and where we’re going. My one chance during the year to simply ramble about where we’ve been and where I think we might be headed – without any credentials, qualifications or expertise to do so.

So, loyal Legal Bytes’ readers, just pull up an easy chair, put away your other distractions for a moment, pour a glass of your favorite beverage, sit back and enjoy . . . and again, thank you.

Much has been written about social media. Whether it’s the Facebook phenomenon, now with 1 billion “friends” in sight, or the Twitter tweets that either rock or knock the world – everyone’s talking about it. I just read an interesting blurb from a powerhouse of a social media strategist I follow on Twitter, describing the social media and corporate world as an example of “orthogonal bliss,” and I thought, that’s interesting, but not quite right. Why, you ask? (You did ask, right?) Hang on.

Much has also been written about privacy and data protection. Online behavioral advertising, geo-targeting and location-based services, tracking, identity theft, the buzz words go on and on. I keep reading how advertisers capable of more accurately determining my preferences represent a massive invasion of my privacy and my rights. Wait a minute. That’s not quite right either. Why, you ask? (You did ask again, right?)

Well, let’s put these in perspective, because all of these inter-relate with cloud computing and mobile and wireless technology and, yes, drive-up windows! When Henry Ford introduced mass-production assembly lines in the early 1900s, prices of automobiles dropped, making personal transportation more affordable. Closed body construction, first available on General Motors’ Cadillac Model Thirty in 1910, as well as the first use of an electric starting motor (invented by Charles Kettering), also in the Cadillac sold in 1912, made the automobile easy for anyone to start and capable of being used in all sorts of weather.

More than just trivia, society as we know it in the industrial age has largely been based on the rapid increase in personal transportation: Drive-up windows, shopping malls, suburbs, gasoline/petrol stations, rumble seats, not to mention paved roads, interstate highways and so much more. Try to imagine not just the vehicles themselves, but also the lifestyles that have changed, the culture and society that has arisen around personalized transportation. The airplane has shrunk the globe, and the automobile has enabled us to go where and when we like on it!

Thirty years ago, computers were largely mainframe monoliths, connected to dumb terminals requiring rocket scientists with punch cards and a working knowledge of Boolean algebra to do anything. Raised floors for cabling, sophisticated air conditioning cooling systems – 1 megabyte of memory in 1978 cost more than $30,000. Why would anyone ever need more than 64K!

Today, personal information systems are transforming our society and our culture as well: Everything from how we work, play, game, learn, research, find things and, yes, interact with each other and the world around us. Rapidly. Our appetite for personalized capabilities has created successful companies that have learned the skills of “mass customization” – yes, there’s an app for that! Devices become smaller and more powerful. I can take my toolkit, my work, my school books, my roadmap, my address book, my email and my phone with me wherever I go. I can keep in touch and shop with one device. “Clouds” and wireless devices proliferate – in the next year or so, estimates indicate there will be more than 5 billion active mobile phone contracts, most Web enabled and most with GPS tracking capability.

Continue reading “Happy New Year Wishes for 2011”

Useless But Compelling Facts – December 2011

Having just posted the Super Bowl answers, let’s turn our attention to another sport – initial public offerings, or IPOs. Hearing the news that a Facebook public offering is in the works, and that analysts are prognosticating it might be worth US$100 billion, I thought I would do a little digging of my own about how this all got started.

So our trivia questions to bring 2011 to a close relate to the world of IPOs. Let’s see how business savvy you all are and perhaps we’ll let you ring in the New Year with a bottle of bubbly as the prize.
What was the name of the first company in the world that ever issued stock? Just so we don’t make it too easy, you need to also tell us where it was incorporated, the year the stock was issued, whether it paid a dividend (some of you are saying, "You’re kidding, right?") and whether it – or actually a successor corporation – is still around.

If you think you know the answers, send me an email at, and if you are first with the complete, correct answer, you’ll win.

Useless But Compelling Facts – October 2011 Answer

For you Super Bowl football fans (as in U.S. football, not as in soccer, as football is known in the rest of the world), here are the answers to our last Useless But Compelling Facts contest:

The team that has scored the most points in Super Bowl games is the Dallas Cowboys (221), and the team that has had the most points scored against it is the Denver Broncos (206). The only team that didn’t score a touchdown in a Super Bowl game was the Miami Dolphins in Super Bowl VI.

Advertising Internet Speeds: Can You Handle the Truth?

In The Wall Street Journal online, Carl Bialik, The Numbers Guy writer and blogger, analyzes the numbers behind advertised versus actual broadband Internet download speeds, and government efforts to measure what the consumer receives compared with what is promised by the ISPs.

In his posting entitled, "How Speedy Are High-Speed Internet Lines?", Mr. Bialik examines the issue of whether statistics derived from a report commissioned by the Federal Communications Commission ( are used in a way that is meaningful to consumers when evaluating the offerings of Internet service providers.

Notably, Mr. Bialik’s article also compares the approach taken by the UK’s Office of Communications (Ofcom) in measuring the speeds offered on the other side of the pond, which maintains the panel of tested carriers in secret to prevent any "gaming" of the test process and system.

Joseph I. ("Joe") Rosenbaum is quoted in the posting in connection with some of the legal issues that arise when statistics and factual information contained in government or other reports are used in advertising. Truth (facts) may not, as in the case of defamation, be an absolute defense.

The government may feel that consumers can’t handle the truth. Or at least the truth, depending on the context and the manner in which it is used in advertising. When, for example, can statements that are literally true become false or misleading? As has been previously noted in Legal Bytes, using old facts can be deceptive and misleading when facts are outdated and new facts are available, or when the old facts clearly don’t apply.

In some cases, even current facts can be misleading. If I advertise that an article will be posted on Legal Bytes once a month and I post two, can I claim that Legal Bytes beats its own advertised promise to consumers by double? If you and I enter a race and I win, can you advertise that I came in next to last and you came in second? Is that true? Yes. Is it misleading? Yes. I’ve omitted facts that are material to the information quoted and that are material to the context for you to evaluate.
The truth, after all, is not always that simple and I am grateful for that. As in the words of William Jennings Bryan: "If it weren’t for lawyers, we wouldn’t need them."