The government is keep on saying gambling is illigal in U.S. gambling on the internet with off shore books is illigal in U.S. Yet what is Bodog? A GAMBLING WEB SITE that advertise IN the U.S. FOR U.S. gamblers. Is that in any way more clear how wrong it's seems and yet government is silent about it, SoS?
What can the government do? Bodog is not an American company. None of the offshore sportsbooks are American companies. Thats why they are *offshore*.
I suppose he could be arrested if he set foot on US soil, but he's not and never was a US citizen and I doubt the country he is a citizen of (Canada I believe) would just stand idly by and let that happen. And Cohen not-withstanding, if the government started jailing any sportsbook operator/owner/employee that steps foot on US soil the public outcry would be far too enormous to even consider it.
There's no possible way for the US to restrict American gamblers from betting offshore... It's just not technically possible. Even if you restrict stateside payment processors, there will be plenty of offshore payment processors for Americans to use -- and you can't outlaw an American from sending money to an offshore account/holding... It's perfectly legal.
So the only avenue the government *could* take is to restrict print/television/etc advertising. To do that they have to go over the actual MEDIA and put pressure and file charges, not the sportsbooks. Again, if the US government starts putting pressure on magazines, newspapers, radio stations, etc... to stop allowing gambling advertising then there will be a large public outcry -- especially from the media itself. The US government does not want a battle with the American media, as the American media for the most part tells the American people what to think, who to vote for, etc...
Even ignoring all of that, its a slippery slope. You start banning offshore sportsbook advertising in the US then you start getting into "free speech/press" issues.
Bodog and ParyPoker are pushing the limits with their ".net" workarounds, and I don't expect those to last -- but there is simply no way for the US government to stop offshore gambling, and all trying harder will do is cause the industry to become more and more unregulated.