IN JANUARY , John Russell, a Justice Department spokesman, was widely quoted as stating, "We have no jurisdiction [to prosecute Internet gambling operators]. The offense has not been made on U.S. soil." Since then, the government appears to have had a change of heart. In announcing the first federal indictments against Internet gambling operations earlier this month, both Attorney General Janet Reno and U.S. Attorney Mary Jo White warned against using the Internet to engage in betting or wagering operations.
But, in court they charged the defendents with gambling over the telephone, since the telephone had been used for some parts of the operation. The US atterneys avoided the issue