Online Gambling Disaster Avoided in Midst of Stanford Bank Debacle

Written by:
C Costigan
Published on:
Feb/19/2009

Unscrupulous payment processors, stringent new U.S. banking laws and one man's religious position related to gambling may have been enough to avert a catastrophe in the online gambling sector.

The industry it seems has learned from past mistakes not to keep all its eggs in one basket, a good thing considering Antigua's largest bank may be on the verge of folding.  Assets are now frozen in Stanford International Bank following an FBI investigation.

Antigua has long been the banking epicenter for the online gambling industry.

"Had everyone been banking at Stanford International we would be talking about a massive crisis the likes of which this industry has never witnessed," expressed Jagajeet Chiba, Chief Business Correspondent for the Gambling911.com website.

It is also ironic that the same religious groups attempting to squash online gambling may now be looked upon as saviors to the industry.

Jay Cohen, founder of the World Sports Exchange in Antigua, noted on the Major Wager posting forum: "Stanford would not take any business from gambling companies or individuals who made their money from gambling. Either because he was a Southern Baptist, or he didn't want any activity that would put his operations on the radar, or both."

Stanford is alleged to have defrauded customers out of  $8 billion, according to the Securities and Exchange Commission. The firm's Antigua affiliate had offered certificates of deposit with what the S.E.C. thinks were suspiciously generous returns.

The former Texas real estate developer who now lives on the island of St. Croix, is  named in a civil suit by the S.E.C. and under investigation by the FBI according to reports.

Christopher Costigan, Gambling911.com Publisher Unscrupulous payment processors, stringent new U.S. banking laws and one man's religious position related to gambling may have been enough to avert a catastrophe in the online gambling sector.

The industry it seems has learned from past mistakes not to keep all its eggs in one basket, a good thing considering Antigua's largest bank may be on the verge of folding.  Assets are now frozen in Stanford International Bank following an FBI investigation.

Antigua has long been the banking epicenter for the online gambling industry.

"Had everyone been banking at Stanford International we would be talking about a massive crisis the likes of which this industry has never witnessed," expressed Jagajeet Chiba, Chief Business Correspondent for the Gambling911.com website.

It is also ironic that the same religious groups attempting to squash online gambling may now be looked upon as saviors to the industry.

Jay Cohen, founder of the World Sports Exchange in Antigua, noted on the Major Wager posting forum: "Stanford would not take any business from gambling companies or individuals who made their money from gambling. Either because he was a Southern Baptist, or he didn't want any activity that would put his operations on the radar, or both."

Stanford is alleged to have defrauded customers out of  $8 billion, according to the Securities and Exchange Commission. The firm's Antigua affiliate had offered certificates of deposit with what the S.E.C. thinks were suspiciously generous returns.

The former Texas real estate developer who now lives on the island of St. Croix, is  named in a civil suit by the S.E.C. and under investigation by the FBI according to reports.

Christopher Costigan, Gambling911.com Publisher 

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