Owners of three massive online poker companies have been charged today with fraud, and accused of "tricking" banks into processing multiple billions of dollars worth of online gambling proceeds.
Among 11 people arrested are the site owners of Full Tilt Poker, PokerStars and Absolute Poker, three major player in American online gambling.
Each is charged with violating U.S. anti-Internet ... [ read the full article ]
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I was just thinking about getting on pokerstars a couple days ago. I am pretty sure I have at least $20 or $30 still in my account. I am sure I can kiss that cash goodbye. Not that big of a loss but for all those people that hundreds or thousands this will be devastating news. With casinos desperate to attract more people because of falling numbers, I wonder if this seizure has anything to do with that.
Here's a better explanation of what's happened apart from i assume the US Gov doesn't get their cut since it's an overseas gambling site basicly protecting their own casino's is the way i see it
Federal authorities unsealed indictments against the operators of some of the world?s largest online gambling sites and moved Friday to seize their U.S domains.
The U.S. attorney in Manhattan, Preet Bharara, charged Isai Scheinberg, the founder of PokerStars, and Raymond Bitar, the founder of Full Tilt Poker, and nine others of fraudulently scheming to thwart a 2006 antigaming law that prohibits U.S. banks from processing internet wagers and payments.
The indictments seek the return of $3 billion in allegedly ill-gotten gains. The charges come amid renewed efforts to legalize online gaming in the United States, and as U.S. authorities increasingly invoke asset-forfeiture statutes to seize the American online domains of sites deemed illicit.
Those indicted on Friday are accused of masking payments from U.S. gamblers (.pdf) in the form of jewelry, golf balls and flower sales ? all in a bid to circumvent the Unlawful Internet Gambling Enforcement Act. The top-level domain seizures include PokerStars, Full Tilt Poker, UB and Absolute Poker. Some of the sites were still rendering Friday afternoon.
Defendant John Campos, vice president of SunFirst Bank of Utah, is accused of processing gambling revenues in exchange for a $10 million ?investment,? according to the indictment. Campos is expected to make his first court appearance Monday.
?As charged, these defendants concocted an elaborate criminal fraud scheme, alternately tricking some U.S. banks and effectively bribing others to assure the continued flow of billions in illegal gambling profits. Moreover, as we allege, in their zeal to circumvent the gambling laws, the defendants also engaged in massive money laundering and bank fraud,? the U.S. attorney said in a statement.
Two of the world?s biggest online gaming houses ? PokerStars, based in the Isle of Man, and Full Tilt, based in Ireland ? account for about $1.4 billion in revenues, Forbes said.
Scheinberg and Bitar have not been arrested and are located outside the United States. The government said it was working with foreign governments and Interpol to secure their arrests and assets.
Why would anyone trust on-line gambling of any kind anyways?
It's the same with phone gambling.
If you're not there to see the cards turn or the dice thrown in real-time then why would anyone be surprised if it turns out it's a massive fraud?
Sure, a handful of 'winners' to encourage the saps but really, come on, be serious ffs.....
If the US wouldn't outlaw gambling, these sites would most likely be run here in the states. More jobs and more money moving around in the US economy and this sub-economy wouldn't exist. I honestly don't understand the problem people have here in the US with gambling. I avoid gambling for the most part because I feel it's a tax on the mathmatically impaired (Casinos wouldn't be in business if the odds were in favor of the patrons), but I don't begrudge anyone if they want to.
