The full letter to Indiana Attorney General

FOR IMMEDIATE RELEASE:

October 20, 1998

Interactive Gaming Council Ups the Ante for Indiana Attorney General

Responds to AG's indiscriminate spamming of legitimate, regulated internet businesses and publishers; Cites industry's ongoing efforts to protect minors.

(Indianapolis, IN) --The Interactive Gaming Council (IGC) announced today that it has issued a response to a cease and desist letter sent by Indiana Attorney General Jeffery Modisett regarding international interactive wagering activities. The response comes following the conclusion of the North American Gaming Regulators Association (NAGRA) annual conference in Indianapolis. In recent weeks, Modisett's office weeks had e-mailed interactive wagering operators, instructing them to stop offering their services to Indiana residents. Modisett's letter was based on a questionable opinion that such services are illegal in Indiana.

"Given the international ramifications of internet censorship - especially with respect to content that is licensed and regulated by a significant percentage of the world's recognized governments - we feel the need to set the record straight," stated IGC Chairman Sue Schneider. "Our response should also serve notice that in the future, the IGC will answer politicians who make claims lacking any basis in law or sound public policy, and who threaten our members' right to engage in legitimate, regulated internet commerce."

In strong language, the IGC letter challenges both Modisett's jurisdiction over international commerce and his interpretation of laws governing the internet. The letter goes on to question the constitutionality of the Attorney General's actions and the wisdom of policies which target regulated internet gaming providers, while ignoring more prevalent and dangerous forms of gambling. The IGC letter also makes a compelling case that enforcing outdated state statutes on the internet could seriously jeopardize all internet commerce. The solution, says Schneider, "is the creation of an international regulatory body to ensure that minors and compulsive gamblers are protected, games are well-regulated and fair, and taxes are paid."

The Indiana Attorney General had claimed that a primary motivation for his actions was a desire to protect Indiana minors from on-line gambling. It was ironic that Mr. Modisett had (CONT.) used unsolicited e-mail (or "spam") to disseminate his non-binding legal opinion, given that Congress and law enforcement officials have been struggling to find a solution to the ever-increasing spam problem around the world.

Nevertheless, the Interactive Gaming Council takes such correspondence seriously, and thus, drafted a response. The IGC's letter aimed to diffuse much of that concern by citing ongoing industry efforts to screen out children. The IGC even offered to work with Modisett's office to develop further safeguards against minor access. Said Schneider, "The Gaming Council has always operated on the principle that minors should not be allowed to gamble anytime, anywhere, period. We are in complete agreement with Attorney General Modisett on this point, and we offer to do everything in our power to work with him to find better ways to protect vulnerable members of the cyber-community."

Schneider said that the IGC will continue to respond aggressively to future state actions in order to educate policy makers and law enforcement officials about how the internet works and the realities of interactive gaming.

For more information, or to obtain a copy of the Interactive Gaming Council's response to Attorney General Modisett, please contact Sue Schneider at: (314) 946-0820 or via email at .