Most online poker players and gamblers are familiar with Black Friday, a 2011 crackdown by the federal government on online poker sites operating in the U.S. The move came after Congress passed the Unlawful Internet Gaming Enforcement Act (UIGEA) in 2006 that led some operators like PartyPoker to flee the market while others like PokerStars and Full Tilt Poker continued offering action to American players.
The events led to Full Tilt eventually being absorbed by PokerStars after the platform was exposed as what investigators referred to as a Ponzi scheme. While many players might have believed legal wranglings related to UIGEA were in the rearview mirror, that looks not to be the case.
On Aug. 24, the Massachusetts U.S. Attorney’s Office announced an Antigua man was arrested more than a decade after being charged in connection with operating an illegal gambling business geared toward U.S. players.
Richard Sullivan, 73, faces charges of racketeering, operating an illegal gambling business, transmission of wagering information, money laundering, and interstate travel in aid of racketeering. Sullivan was taken into custody on Aug. 20 at Kennedy International Airport in New York.
“This prosecution marked one of the first times that individuals were charged with violating the Unlawful Internet Gambling Enforcement Act (UIGEA), and the first in Massachusetts,” prosecutors noted in a news release.
Big Numbers
Originally indicted by a Boston federal grand jury in 2010, Sullivan and three co-conspirators (Todd Lyons, Robert Eremian, and Daniel Eremian) are alleged to have operated Sports Offshore, an online gaming site licensed in Antigua but operating in the U.S.
Investigators say Sports Offshore used a website and telephone line to serve American customers. The ring allegedly employed 50 gambling agents in the U.S. to solicit and collect gambling debts from hundreds of customers across the country. Those funds were then sent to Antigua.
To conceal the enterprise, the group created numerous fictitious entities with no legitimate business purpose to launder the proceeds of the scheme, according to authorities. Sullivan allegedly managed daily activities in Antigua and directed collections from U.S.-based bettors and agents. The indictment also alleges he served as an agent, responsible for and earning commissions from a group of Massachusetts customers.
Overall, federal prosecutors say Sports Offshore collected $22 million and laundered $10 million in checks and wire transfers. Lyons and Dniale Eremian were convicted in December 2011. Lyons received four years in prison forfeited $24.6 million. Eremian received three years and forfeited $7.7 million.
Sports Betting, Online Poker Legalized Since Black Friday
The U.S. sports betting and online gaming scene has changed considerably since Black Friday. iGaming is now regulated on a state-by-state basis and sports betting has grown rapidly in recent years with 35 states and Washington D.C. and Puerto Rico now offering some form of legal sports betting
Online poker is also now once again available in the U.S. on a state basis. So far, New Jersey, Nevada, Delaware, Pennsylvania, and Michigan all offer legalized online poker. West Virginia and Connecticut also legalized online poker but have yet to see poker sites begin operating in the states.
MGM Casinos Deal with Computer Hacking
In other gaming news, MGM Resorts experienced major cybersecurity issues on Monday that led all the company’s computer systems to go offline. The initial effects were felt on Sunday with the company’s reservation systems and email accounts affected.
“MGM Resorts recently identified a cybersecurity issue affecting some of the company’s systems,” MGM announced. “Promptly after detecting the issue, we quickly began an investigation with assistance from leading external cybersecurity experts. We also notified law enforcement and took prompt action to protect our systems and data, including shutting down certain systems. Our investigation is ongoing, and we are working diligently to determine the nature and scope of the matter.”
The issues continued into Monday and the company offered a website link with phone numbers for guests to make reservations in the meantime. The hacks also affected some guests’ ability to open their hotel rooms and MGM allowed guests access to a physical key if needed in place of a key card.
Restaurants remained open as well with guests needing to call or use a concierge to make reservations. The casinos remained open for business.
“As an update to our previous statement, our casino gaming floors are operational,” the company noted in a statement. “We continue to work diligently to resolve this issue.”
The exact nature of the security issue isn’t yet known. The FBI has begun working with MGM to investigate the cybersecurity breach. An update hadn’t been offered by Tuesday morning and the situation seemed to remain similar to Monday.
