Amazon.com Gets In Trouble For Cockfighting?

Sports Betting Site Shut Down After Exec's Arrest

from the taking-a-breather dept

Wed, Jul 19th 2006 2:00am — Mike Masnick

Remember the online sports betting site who's exec wasn't at all worried about attempts by the US government to make anti-online gambling laws more stringent? Yes, the one who was arrested while passing through a US airport? It seems that the charges against him and others at his operation are nothing to joke about: conspiracy, racketeering and wire fraud. A judge quickly demanded that the site stop taking bets in the US, leading the company to completely take down its website. Of course, the real question is what, exactly, the site is accused of doing. If the betting it offered was legal in Costa Rica and the UK (where the company was based), then it seems a bit questionable for the US to be charging the execs. Perhaps there's something more going on here, but it certainly sounds like our government trying to look tough on gambling during an election season.

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34 Comments

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dorpus, 19 Jul 2006 @ 2:07am

Do you know everything?
Can you say for sure that this guy was not involved in other illegal activities? Does anyone believe that people who run casinos are honest businessmen, with no connections to the mob?
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- John, 19 Jul 2006 @ 3:02am
  
  Re: Do you know everything?
  dorpus spoke thusly:
  
  >Can you say for sure that this guy was not involved in
  > other illegal activities? Does anyone believe that people
  > who run casinos are honest businessmen, with no
  > connections to the mob?
  
  Gee... perhaps that's why Mike wrote: "Perhaps there's something more going on here". He wasn't counting out that possibility, but asking what the details were: "the real question is what, exactly, the site is accused of doing." That doesn't exclude the questions you asked.
  
  I guess it's too much to expect reading comprehension from dorpus.
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- Anonymous Coward, 19 Jul 2006 @ 4:54am
  
  Re: Do you know everything?
  Run by the mob? Maybe in the US where gambling is so taboo but this is a UK based comany where gambling is much more accepted and bookies can be found on the High Street in almost every town.
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Anonymous Coward, 19 Jul 2006 @ 2:54am

"the mob" or "a mob"?

when you say "mob", what do you actually mean?
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Danno, 19 Jul 2006 @ 3:07am

In any case, it's a little weird that you can be arrested in another country for doing something illegal in that country that is legal in your country when you only did said thing *in* your country.

I mean, will Signapore arrest me if I go there because I have spit chewing gum on the ground? Or if I run a website promoting and/or facilitating said act?

Am I safe if Signapore blocks the site, or does that just mean that they know who to gun for?
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Charlie, 19 Jul 2006 @ 6:44am

Sports site shutdown
GOOD!
Its about time the US government cracked down on this illegal activity.
OK so its legal to do that in Costa Rica so what? The money being "taken" out of US bank accounts is from US citizens, and last I checked it is illegal here.
We have enough problems with gambling right here at home. It's a nice warning to other "out of country" companies that you can not prey on our problem gamblers and stay out of jail. Even though the home base is somewhere else the "activity" is taking place here and should be sopped.
I hope they really make an example of this guy.
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- moe, 19 Jul 2006 @ 6:57am
  
  Re: Sports site shutdown
  Charlie said - "The money being "taken" out of US bank accounts is from US citizens" and "It's a nice warning to other "out of country" companies that you can not prey on our problem gamblers and stay out of jail"
  
  Ever heard of personal responsibility? I wouldn't be surprised if you hadn't, because it's something that's been virtually non-existent in our "we're all a victim of something" society.
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- ebrke, 19 Jul 2006 @ 7:01am
  
  Re: Sports site shutdown
  'The money being "taken" out of US bank accounts is from US citizens . . ."'
  
  Then shouldn't said US citizens be the ones who are arrested? The activity is perfectly legal for people who are citizens of other countries.
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- kerry, 19 Jul 2006 @ 8:39am
  
  Re: Sports site shutdown
  You are a moron, I suppose you also want big brother sitting in your living room dictating you your every move....
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Raekwon, 19 Jul 2006 @ 6:55am

You're a moron.
Let me guess, you're opposed to stem cell research, and the evolution theory as well, correct? An internationally based website, located in a country where they are breaking no laws, should not be able to be prosecuted from around the world. If sports betting is illegal in the US, the liability should fall on the users "breaking" this law, that are citizens of that country. Not the company around the world that's providing the service, where it is NOT illegal. You're a moron. Tell Jesus I said, "F*** Off."
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- raekwon, 19 Jul 2006 @ 7:07am
  
  Re: You're a moron.
  Next we're going to hear about one of these Muslim leaders arresting a US or UK citizen for listening to music or perhaps one of our women for not wearing a bhurka? Hey I mean, it's there law not ours, since the laws of one government apparently apply to the world. Destroy Demonocracy.
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- RevJohn, 19 Jul 2006 @ 8:08am
  
  Re: You're a moron.
  You're a moron. Tell Jesus I said, "F*** Off."
  
  Such high level postings are so enjoyable to read. Let me guess - you're 15? Or is it 14?
  
  Doesn't matter - Jesus will still love you, and we will too.
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  - Johnson_Johnson, 29 Aug 2007 @ 7:21am
    
    Re: Re: You're a moron.
    My sentiments exactly. Raekwon should get out the house sometime and get off the internet. I especially like the Destroy Demonocrocy...read a little more into the laws of the US and international law pertaining to transmissions over the WWW and then you can run your mouth. Until then, tell your mom hello and to get off your a$$ about cleaning your room.
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- Charlie, 19 Jul 2006 @ 9:15am
  
  Re: You're a moron.
  Actually, I support stem cell research and agree with the general theory of evolution. Im not even at all religous.
  But thank you for the spirited reply to my post.
  Let me ask you if a person in another country via the internet broke another American law, say the anti-terrorism laws, would you support that activity as strongly?
  Even though it is legal in that country. Seems like maybe you should see about your gambling problem friend and not be so unaccepting of others viewpoints.
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  - Mikester, 19 Jul 2006 @ 9:31am
    
    Re: Re: You're a moron.
    Let me ask you if a person in another country via the internet broke another American law, say the anti-terrorism laws, would you support that activity as strongly?
    
    You're comparing gambling with terrorism? And I didn't think your credibility could drop any lower. LOL.
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    - Anonymous Coward, 29 Aug 2007 @ 7:29am
      
      Re: Re: Re: You're a moron.
      Law doesn't give a $hit about the moral ineptitudes of a crime...he's defining the law. Whether it's an act of terrorism or an illegal gambler on the internet, it's all the same to the Law: illegal. I support gambling because I love to gamble, but to say that our government can't support their own laws that affect its people (the illegal online gamblers in the US) is just amateur. Why don't you read into the effects of lobbying and YOU tell ME why the government cracks down on it. A) they get no tax revenue, and B) you have a $5 Billion industry and they're going to sit on their a$$???
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- aquakid, 22 Jul 2006 @ 2:23am
  
  Re: You're a moron.
  Right on!!!The Christian Taliban is intruding on every aspect of our lives.If they don't want to gamble, drink or do drugs ...more power to them...just leave me the f**k alone. Worry about your own business. When is your intrusion on our lives going to stop?Why don't you outlaw Big Macs? People are dying from obesity, diabeties and heart disease evertday because they don't have the discipline to quit shving food in their mouths. Bottom Line:Stop using Jesus as an excuse for being a narrow-minded bigoted asshole!
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Paul Frankenstein, 19 Jul 2006 @ 7:02am

Let's Look At The Statute, Shall We?
18 USC 1084(a) (otherwise known as The Wire Act):
Whoever being engaged in the business of betting or wagering knowingly uses a wire communication facility for the transmission in interstate or foreign commerce of bets or wagers or information assisting in the placing of bets or wagers on any sporting event or contest, or for the transmission of a wire communication which entitles the recipient to receive money or credit as a result of bets or wagers, or for information assisting in the placing of bets or wagers, shall be fined under this title or imprisoned not more than two years, or both.
The plain language of the statute states that using wire communications facilities (i.e. telephones, i.e. the Internet) in the furtherance of a interstate or foreign sports gambling business is illegal in the United States. It should be noted that the WTO has held that the Wire Act is an illegal restraint of international commerce, so that'll probably be a large part of his defense. Historically, the Wire Act was enacted as part of the Kennedy administration's war on gangsters. I think that the language about "sports gambling" is in the Act because, back in those pre-Internet days, the only practical form of gambling over the telephone was running a sports book. As a side note, there's an argument over whether or not the Wire Act covers other kinds of gambling, not just sports gambling, but that's moot in the instant case.
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- Ex-OnlineGamblingProgrammer, 19 Jul 2006 @ 8:01am
  
  Re: Let's Look At The Statute, Shall We?
  The wire act does indeed make sports betting online illegal, but does not include online casinos nor does it include poker (this is not in question but has been proven in court). The Kyl bill which is now in the senate is looking to fix this. Though the Kyl Bill has gone to congress and failed in the senate I believe every year since 2000, this year could be different because of the huge IPO's of online casino and poker rooms as well as Abramoff being in jail. Abramoff was the one usually spearheading the killing of the Kyl Bill.
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  - Paul Frankenstein, 19 Jul 2006 @ 8:20am
    
    Re: Re: Let's Look At The Statute, Shall We?
    Well, the court holding that the Wire Act doesn't apply to online casinos and online poker stems from a 5th Cicruit ruling in a civil class-action case (In re Mastercard, 313 F3d 257). That case is only controlling in the Fifth Circuit, and it's telling no courts outside of the 5th Circuit have cited the case in support of the proposition that the Wire Act only prohibits sports gambling.
    
    My reading of the language of the statute is that it also covers on-line casinos and on-line poker. I'd be wrong in the 5th Ciruit, but outside the 5th Circuit, it's still an open question. The Kyl bill is, I believe, intended to fix the ambiguity in the language of the statute.
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Stephen, 19 Jul 2006 @ 7:21am

Hypocritical
Don't we have extradition treaties with the UK? If this is such a crime why wait for the Execs to come to America? Charge them and extradite them today. Because this has not happened they probably have a weak case anywhere except here. American's knowing America law and in America should be prosecuted. If this is upheld then religious commentators writing in America could travel to Iran or Pakistan and be arrested and jailed for their activites on the internet. What's the difference?
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- claire rand, 20 Jul 2006 @ 5:27am
  
  Re: Hypocritical
  I don't actually think with the current agreement the question of legality in the *uk* even comes up, witness the three execs recently sent over your way. dispite no actual evidence ever being presented.
  
  i'd like to wring the neck of the muppet that agreed to that one being implemented *before* BOTH sides ratified the treaty.
  
  cuz for some reason I can't see a US citizen being sent to another country for violations of that countries laws over the net while the citizen in question was on US soil. no cance at all (and rightly so).
  
  the arguments about 'terrorism' etc always crop up, and typically seem to be used to argue that "if you don't sgree with me you must support terrorists" which is BS and used to obscure the issue.
  
  the way of the world i guess.
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NGUVU, 19 Jul 2006 @ 8:43am

Just use a local bookie
That saves a lot of money on fees and such.
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- aquakid, 22 Jul 2006 @ 2:33am
  
  Re: Just use a local bookie
  Only problem: I can't call my bookie at 3:00am or 2 minutes before kickoff. My bookie doesn't offer re-up bonuses and he doesn't have parlays and teasers, not to mention prop bets, first half bets ,reverse teasers,etc. Also he doesn't take Visa or echecks or bankwires.
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Anonymous Coward, 19 Jul 2006 @ 9:09am

Jeez.
Sports betting is illegal in the US. Period.
80% of Betonsports revenues come from the US.
The guy and his company were already warned not to take bets from the US! They chose to ignore the warning.

As with the Nat West bankers, treaty agreements would have covered his extradition, but seeing he was arrogant enough to come here, he was arrested.

What is so hard to understand? Well, other than his stupidity?
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Pete Rose, 19 Jul 2006 @ 10:19am

Personally,
I think the U.S. should open up the internet for sports gambling and use that as a way to gnerate tax revenue. Noth that I'd ever do such a thing.
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Anonymous Coward, 19 Jul 2006 @ 10:23am

You don't see the founder of Skype flying into the US do you?

We have arrested drug lords in Columbia, invaded countries to arrest people (with help from Van Halen) and done much more to protect the laws and the people of the US.

Mexico is considering making legal the sale of coke and heroin. If that happens, you would be fine for people to set up a web site to export those legal products to US Citizens?

I agree, the people buying the product should be held responsible, but its a lot easier to shut off supply than to shut off demand. Squeezing both ends is probably the best route to take.
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andy orso, 24 Jul 2006 @ 10:56am

betonsports.com $$$
thank god i got almost all of my money out before they shut down
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- dan, 6 Oct 2006 @ 8:43am
  
  Re: betonsports.com $$$
  thats ok andy just call your local bookie in new york
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KILLER BEE, 26 Jul 2006 @ 8:40am

CLASS ACTION SUIT
Will ther be any class action suits against BOS?
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Nona Yobusiness, 29 Jul 2006 @ 1:23pm

Unbelievable
If you cannot control yourself from spending all your money on gambling you're not going to be saved by the US government banning online gambling. The fact that the government is arresting someone for breaking laws that do not exist in their country is further proof that the US government is trying to control our actions and restrict world commerce. The WTA has agreed that this is so. Just another example of “do what I say not what I do”, like not letting the UN inspect Guantanamo Bay, and having secret prison camps where "We do not torture". The world is looking at us as the hypocrites we are becoming. This is sure to destroy our reputation as a free society and further our lack of credibility on the world stage. Everyone wants to talk about "Freedom". But what is has become is a chant to further political ambitions, religious (aka special interests) and degrade the integrity of those who oppose restrictions of their freedom. With freedom comes responsibility. What we need to decide is weather we want to be free to do what we want or taken care of by the government (communism? socialism?). We CANNOT HAVE IT BOTH WAYS!
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Reverse Teaser, 14 Aug 2006 @ 4:55pm

Other sites
What does this latest shutdown mean for all the other sites? Sportsbook? Bodog? etc... anyone know?
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homer simpson, 15 Aug 2006 @ 2:28pm

B.O.S.
I have (had) an account w/BOS but failed to get my $$ before they shut down. What are the odds I'll be able to recover some or all in my account at a future date?
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gamblin fool, 14 Feb 2007 @ 5:04pm

my money
why is it illegal huh? sports betting is a business transaction between 2 groups ( the sportsbook & the gambler). Go into any real sports bar and you'll be able to find a bookie pretty easy. whats next, is the gov't gonna send undercover agents to bust them too? I think our "Do Nothing Congress" needs to focus on way more important issues other than stopping harmless online gambling.
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