US DOJ searches financial records for traces of internet gambling and betting.

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INTERNET BETTING AND GAMBLING: CRISIS #23,765

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Via Niall O&#8217-Connor of Betting Market, The Register&#8217-s Burke Hansen (a San Francisco attorney):

House of Cards. The American Department of Justice (DOJ) threw a spotlight on the murky underworld of internet gambling payment processing this afternoon with the indictment in Utah of seven individuals and four companies – including BetUs.com and serial violator BetonSports.com – involved with processing payments for online gambling transactions, according to the Associated Press. The indictment seeks to recover $150 million from the defendants under the Racketeering Influenced and Corrupt Organizations Act (RICO), in addition to hard assets such as real estate and property used in running the operations.

Ever since President Bush signed the Unlawful Internet Gambling and Enforcement Act (UIGEA) into law last October, internet gambling companies have been scrambling to process payments from frustrated American customers. […]

Although the UIGEA does not take effect until early July, major financial institutions pulled out of the American market almost immediately, forcing American gamblers and US–facing gambling suppliers to resort to increasingly roundabout methods of payment. […] Money laundering is just the disguising of the true nature of a financial transaction, and the convoluted payment systems allegedly developed by the defendants appear to qualify as that. […] Just how does the DOJ unravel these things? Although Tolman didn’t discuss that question, the DOJ most likely triangulates based on payment histories readily provided by American or foreign financial institutions. The DOJ could fairly quickly compare the payment history of a customer account formerly sending monthly payments directly to Bodog, for example, with more recent post-UIGEA history of the same account and guess with some accuracy where the gambling money now goes. […]

Frightening. :(

2 thoughts on “US DOJ searches financial records for traces of internet gambling and betting.

  1. Chris. F. Masse said:

    Previous stories on Internet gambling and betting crisis:

    Internet gambling ban has passed.

    http://www.midasoracle.org/200…..as-passed/

    Unlawful Internet Gambling and Enforcement (UIGEA)

    http://www.midasoracle.org/200…..ement-act/

    Neteller will comply with the Unlawful Internet Gambling Enforcement Act of 2006.

    http://www.midasoracle.org/200…..t-of-2006/

    Reality check on TradeSports-InTrade’s recent statement

    http://www.midasoracle.org/200…..statement/

    TEN CEO John Delaney finally admits that the new law will cut off TradeSports-InTrade’s revenues.

    http://www.midasoracle.org/200…..-revenues/

    Trade Exchange Network Reorganizing

    http://www.midasoracle.org/200…..rganizing/

    Internet Gambling Crisis – AGAIN

    http://www.midasoracle.org/200…..sis-again/

    Using NETeller for TradeSports-InTrade, no more

    http://www.midasoracle.org/200…..e-no-more/

    TradeSports-InTrade John Delaney won’t travel to the U.S. anymore.

    http://www.midasoracle.org/200…..s-anymore/

    Criminal prosecutions related to online gambling will be pursued even in cases where assets and defendants are positioned outside of the United States.

    http://www.midasoracle.org/200…..ed-states/

    TRADESPORTS-INTRADE HAS REMOVED NETELLER AS A DEPOSIT AND WITHDRAWAL METHOD FOR ALL MEMBERS –NOT JUST THE US CITIZENS AND RESIDENTS.

    http://www.midasoracle.org/200…..residents/

    NETELLER RECORDS OF THE TRADESPORTS-INTRADE CLIENTS WHO ARE US CITIZENS/RESIDENTS ARE NOW IN THE HANDS OF THE US DOJ AND IRS.

    http://www.midasoracle.org/200…..j-and-irs/

    NETeller money seized by U.S. prosecutors will be returned to NETeller’s (now, former) U.S. customers.

    http://www.midasoracle.org/200…..customers/

    Will InTrade-TradeSpots lose big after the (hypothetical) passing of the 2007 Internet Gambling Regulation and Enforcement Act???

    http://www.midasoracle.org/200…..ement-act/

    US DOJ searches financial records for traces of Internet gambling and betting.

    http://www.midasoracle.org/200…..d-betting/

  2. Joeseph said:

    Tough times to be in the gambling industry but I think there will be clear sailing ahead within the next couple of years.

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