..

Pay Per Head Outfits May Win Out Big In Wake Of Online Poker Indictments

Written by:
C Costigan
Published on:
Apr/19/2011

The “all clear” may not be there just yet but many in the online gambling sector feel somewhat at ease by the notion that the United States Justice Department has honed in on the big three online poker rooms and will spend much of the next few months preparing their case against Full Tilt Poker, PokerStars and UB.com.

More localized efforts are possible but few in the industry expect to see anything on the scale of what transpired on Friday.  There are, after all, no operations bigger than Full Tilt and PokerStars combined.  Even separately, these were forces to be reckoned with.

Organizations like the Poker Players Alliance have challenged the USJD in recent years, claiming online poker rooms had every right to operate legally in the US while shunning the “evil” sports betting businesses.  The United States Justice Department thought otherwise. 

Throughout the last few years of Internet poker prosecutions, US law enforcement agencies continued to go after the sports betting sector, but only indirectly as part of much broader investigations into organized crime syndicates.

The Pay Per Head sector continued to flourish throughout this period of time.  These businesses point out that they are not involved in cash transactions related to sports betting. 

“A lot of people are wondering if we will witness more of this (prosecutions) in the future but directed against the online sportsbooks,” a rep from PayPerHead.com said.  “The way things are turning out, websites like PayPerHead.com which cater to bookies have a brighter future because they’re not involved with the transfer or monies using banks. PayPerHead sites just lease software to bookies.”

For years, those in the sports betting sector have cringed at the PPA’s bold statements.

Those in the industry long before Full Tilt Poker and PokerStars even came into existence point to former US Attorney General Janet Reno’s conversation with a driver who was also employed by one of the sportsbooks operating in Costa Rica while she visited there (and obviously noticed all those gigantic satellite dishes that lined the landscape).

When asked, Ms. Reno relayed that the US Government had taken a stance that the Costa Rican online gambling industry could continue “as is” but “not to rub it in the faces of US law enforcement”. 

At the time, the Clinton Administration could easily have squashed the industry.  They elected to back off following a series of indictments in March of 1998.  Most of those individuals were given slaps on the wrists.  One had his passport revoked and was forced to wear an ankle bracelet while still operating a series of online casino sites out of Costa Rica.

- Christopher Costigan, Gambling911.com Publisher

 

Follow breaking headlines around the clock at Gambling911.com Twitter Here

Gambling News

Westminster Dog Show Betting Odds 2021

Westminster Dog Show Odds 2021

Athletes and celebrities will take a back seat to canines this weekend as the 2021 edition of the Westminster Kennel Club Dog Show begins Friday.

Claressa Shields MMA Debut Odds and UFC 263 Props

Claressa Shields MMA Debut Odds and UFC 263 Props

Claressa Shields, the best pound-for-pound female boxer in the world, steps into the Octagon tonight for her mixed martial arts debut.

YouTubers vs. TikTokers Boxing Odds - Bryce Hall Big Underdog

YouTubers vs. TikTokers Battle of the Platforms Boxing Odds - Bryce Hall Big Underdog

One of the biggest events on the social media calendar goes down Saturday night as YouTube influencers square off with TikTok influencers in a boxing spectacle being called the "Battle of the Platforms."

Becoming a Bookie Where to Start

Becoming a Bookie Where to Start

The increase in popularity and decrease in the stigma associated with sports betting have put the industry more into the mainstream. Sports leagues, reversing decades of keeping gambling organizations at arm’s length, have embraced the practice, going as far as establishing formal agreements. 

Washington State Panel Approves Sports Betting; Sends to Governor

The Washington State Gambling Commission on Thursday approved amendments to gambling compacts for 15 Native American tribes that are a major step to allowing those tribes to offer sports betting at their casinos.

Syndicate