Clear Channel Latest to Confirm Grand Jury Subpoena

A clearer picture is starting to emerge regarding the scope and scale of a Grand Jury Investigation looking into the advertising practices of the interactive gambling industry.

Clear Channel Communications Inc. confirmed yesterday through a Securities and Exchange Commission filing that it was cooperating with the Department of Justice after it was asked to provide information related to Internet gambling advertisers.

Last month a portal site came forward with a copy of a subpoena it received from the U.S. District Court in the Eastern District of Missouri.

A few weeks later the Howard Stern Radio show unexpectedly pulled advertising from two of its major advertisers, Golden Palace.com – a popular online casino, and BetOnSports.com – a leading offshore Internet sports book.

Other than a handful of confirmed subpoenas the size of the Grand Jury investigation was still somewhat of a mystery although many speculated that the investigation could be an all-encompassing look into the industry.

Clear Channel is headquartered in San Antonio, Texas, and operates 1,225 radio and 39 television stations in the United States and has equity interests in over 240 radio stations internationally.

Clear Channel also operates approximately 776,000 outdoor advertising displays, including billboards, street furniture and transit panels around the world.

CCC admitted, in a special filling with the SEC, that it received a subpoena on Sept. 9 in which the company was asked to testify before a Grand Jury in relation to its advertising practices with "offshore and/or online gambling businesses, including sports bookmaking and casino-style gambling."

Clear Channel said it is cooperating with the Justice Department in the inquiry.

Shares of Clear Channel closed at $42.17 on Thursday. A company spokesperson had no further comment about the investigation.