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In one of the more laughable news stories in recent weeks, we learn that a Beverly, Massachusetts man is being hailed as "the first person in Massachusetts charged with violating a 2006 federal law that restricts Internet gambling". The law in question is the Unlawful Internet Gaming Enforcement Act (UIGEA).
We're not laughing at the idea of this individual being arrested, but saying Todd Lyons, an agent for the Antiguan-based Sports Off Shore (SOS), is in violation of UIGEA would most certainly be a bit of a stretch considering his supposed illegal activity took place starting in 1997, according to prosecutors. Doing the math, that is almost nine years prior to passage of any online gambling prohibition.
Lyons is also merely an agent and not an owner in Sports Off Shore, unless we missed the memo.
The Antiguan government has been involved in a World Trade Organization (WTO) dispute with the US Government over its right to host Web gambling establishments for years now. Ultimately, the WTO found in Antigua's favor though the US is yet to adhere to any of the stipulations set forward, primarily in regard to allowing its citizens to place bets with Antiguan-based i-Gaming businesses.
It's a good thing the US is not abiding by the WTO ruling since one of Antigua's main online gambling companies since 1996, World Sports Exchange, continues to slow pay (and in some cases "no pay") clients. WSEX.com did have its license revoked by the Antiguan government and so too has Sports Off Shore.
SOS has long enjoyed a colorful history operating out of Antigua since 1996, which includes that island nation infamously turning over Sports Off Shore's founder to the US Government for reported tax evasion. He later returned to continue running the business from his home (which was typical of many early island operations). The sportsbook was well known for its fast payouts and top-of-the-line customer service. In recent years, they have been less inclined to take on any new customers.
The UIGEA holds banks and credit companies responsible for enforcement, however, in the case of Lyons, the 36-count indictment alleges he collected more than $22 million illegally as the primary agent in the state for Sports Offshore. As an alleged "agent" for the company, one can presume he dealt mostly in cash and therefore circumvented the banking institutions responsible for policing such transactions.
Christopher Costigan, Gambling911.com Publisher
