On Monday, May 23, 2011, 11 bank accounts based in North Carolina, Charlotte, Panama, Malta, the Netherlands, and Portugal were seized. In addition, ten domain names which are connected to online gambling sites were also taken over. These included Funtimebingo.com, Bookmaker.com, 2Betsdi.com, Goldenarchcasino.com, Truepoker.com, Beted.com, Betmaker.com, and Betehorse.com. Now, if anybody tries to gain access to these websites, they will be greeted by a banner which states that these sites have been seized.
The Announcement
The announcement over these seizures was made be Rod J. Rosenstein, US Attorney for the District of Maryland. He stated that “It is illegal for Internet gambling enterprises to do business in Maryland, regardless of where the website operator is located. We cannot allow foreign website operators to flout the law simply because their headquarters are based outside the country.”
William Winter, Special Agent in Charge of ICE’s Homeland Security Investigations in Baltimore, added that the indictments were due to the extensive undercover work carried out by his agents along with other law enforcement organizations based in Maryland. He went on to say that most of the time the money made from illegal online gambling was used in organized crimes and in other forms of criminal activities. The ICE will continue to crack down on this illegal activity in order to bring an end to this form of financial crime, whether within the USA or abroad.
Those Involved
ThrillX is a registered company located within British Columbia, Canada. It has an office in Vancouver and also further afield in San Jose, Costa Rica. It functions as a software solutions provider for online sports book and casinos. BMX Entertainment is located in Limassol, Cyprus, and provides online sports betting for six websites.
These companies have been charged with providing illegal online sports betting. They are run from outside the USA, but most of the players are based in the country. A main issue is that for funds to move to and from the gamblers, they need to use the US banking system, known as payment processors.
Payment Processors
In general, an online gambling operator tells the payment processor to take the money from a player in the USA which can then be used as wagers. The money is then moved into a bank located offshore. The operator then transfers money, either as a wire transfer or a check, from a foreign bank and to the payment processor. The payment processor then gives the winnings out to the appropriate players.
Seizure warrants were used against an undercover payment processor company known as Linwood Payment Solutions. The company is thought to have been processing gambling transactions since 2009 for a number of gambling organizations.
The defendants involved in the case will face up to five years imprisonment. They will be charged with running an illegal gambling organization. A maximum of 20 years will be afforded to those charged with money laundering.