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US Authorities Take Down an Online Casino Operator

Associated Press reports that the United States’ federal authorities have taken action against an offshore online casino betting ring. The online casino operator was dismantled in April, when federal officials took its $2.5 billion operation down by charging two fugitives and their companies with online gambling money laundering. William Scott and Jessica Davis were indicted on April 7 for enticing online casino players to send funds from the U.S. to a Caribbean Island based company. Scott and Davis are alleged to carry their illegal online casino activities for over eight years.

Players were able to place bets through a toll-free telephone number or via online casino sites. The online casino operator is accused of violating the Wire and Travel Acts and carrying out a money laundering conspiracy. The U.S. government was aided by the government of the independent state of Guernsey, located off the coast of France, to locate money transfers made by the online casino operator.

The funds that were tracked are believed to be a very small part of the online casino operator’s actual earnings, and the U.S. government is seeking $250 million through forfeiture to collect the fees that were kept by the defendants. This is considered to be a step up in the U.S. government affords against online casino activities. The fact that the online casino group violated non-gambling related rules made the arrests possible.

OCA News Editor

Jenny McKinnley is OCA’s financial correspondent. After spending years on the trading floor in both NY and London, she offers insight from the inside out on world financial news and events.

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