12-05-2007 BetUS charged with RICO conspiracy

While the American Gaming Association reports a 7% increase to a record $32.4 billion in 2006 gambling revenues at US commercial casinos, the US Attorney for Utah Bret Tolman announced a 34-count indictment on charges of racketeering conspiracy, bank fraud, transmission of wagers and money laundering against seven Las Vegas residents and four companies, including BetUS.com.

The defendants are accused of creating three companies to disguise credit card payments to online gambling sites as legitimate purchases, fooling the Visa and MasterCard issuing banks into approving them. Online gambling transactions were also funneled via Western Union wire transfers through associates in the Philippines. The indictment alleges the defendants processed more than $150 million in payments to online gambling sites between 2000 and 2007.

"Virtually all Internet gambling is illegal. Individuals and businesses that facilitate illegal Internet gambling are violating numerous federal and state laws," commented US Attorney Brett Tolman. "Payment processors who attempt to hide the true nature of the transactions they are conducting and the Internet gambling websites that use these payment processors will be prosecuted and brought to justice."