American Sports Limited argued that American gamblers were actually placing their bets in England where the bets were accepted and where gambling is legal. However the US court found that it did have jurisdiction to apply U.S gambling law to the case, and decided that the New Jersey company had violated New Jersey law by promoting gambling. It also held that the FBI’s seizure of the contents of two accounts in New Jersey had therefore been legal.
The case is a timely reminder to companies engaging in e-commerce in multiple jurisdictions that they need to consider the possibility that they will be required to comply with the laws in each of those jurisdictions and not just the laws of the country in which the company is physically located.
© Herbert Smith 2002
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