Sunday, April 30, 2006

Allegiant Air, the Las Vegas-based low-fare air carrier, has abruptly
canceled an ad deal with an online casino company that would have turned six
of the airline's jets into flying billboards. Allegiant specializes in
flying tourists from middle-market cities such as Des Moines, Iowa, and
Shreveport, La., to Las Vegas.

Ponder Harrison, Allegiant's managing director, said Allegiant pulled the
plug on the deal with Bodog.com after airline executives learned more about
the Justice Department's views on advertising Internet gambling, which the
government considers to be illegal.

Allegiant canceled the deal after a Las Vegas Sun reporter questioned an
airline executive .

Allegiant wouldn't disclose the value of the canceled deal, but published
reports said it was worth $500,000.

Harrison said Mylar film with the Bodog brand had already been applied to
the fuselages of five MD-80 jets .

"The more we did our due diligence, the more we became uncomfortable with
displaying the brand," Harrison said.

Bodog had hoped its three-month deal with Allegiant would reach gamblers who
go to Las Vegas once or twice a year and might consider playing online. Tray
tables resembling blackjack tables were also planned .

In a statement, Bodog's founder and Chief Executive Calvin Ayre said he
understood Allegiant's decision.

"I have no problem with Allegiant changing our agreement when faced with
this type of threat," Ayre said. "We 100 percent support them and are
saddened that they are not being able to pursue their constitutionally
protected rights of free speech in this case."