More Arrests in Online Casino Troubles

Published on: May 13, 2010 

Countries are beginning to take note and make examples out of those who do wrong when it comes to online casinos.  It is hard to track fraud online or even identity theft when it happens because of the way the world is set up on the internet.  It is difficult to find the culprit in any scheme.  Recently Douglas Rennick was caught and arrested for online gambling fraud.

He is a 35 year old Canadian who went to federal court this week.  The interesting part about going to federal court is that he did so in Manhattan, New York.  During the court proceedings he did plead guilty to the charges such as transmitting betting information.  He was arrested for illegally transferring money to US players from an offshore casino.

Rennick spoke about his business in that it was set up to transfer money from online casinos located in offshore locations for American players who are restricted from gambling at all online.  The United States passed a law in 2005 kicking out online casino sites from the US; however, this has not stopped a majority of players.  Instead they find online casinos that are still willing to take online casino players or to work intermediately for them like Rennick did.

Rennick made these payments between 2007 and 2009 before he was caught.  The fact is that Rennick is not the only one to be doing this type of business.  Americans are flagrantly disregarding the laws in order to have fun.  The UIGEA Act was set up to make it illegal for US banks, credit card companies, and any other financial company from processing online casino payments.  This is why online casino players in the US have tried to find alternative means even though they know it is illegal.

Rennick’s team of legal advisors felt it was best for him to plead guilty and to sign a plea agreement.  The agreement means he will spend 6 to 12 months in prison as per the guidelines stated in the plea.  He is also supposed to turn over $17 million as part of the agreement.  The US prosecutors are actually going after $565.9 million relating to the case as a whole.  They believe Rennick processed more than $350 million in his illegal business.  This case just makes it plain for those in the online casino world not to buck the laws and that the laws need to be more open like the UK.

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