$3.3 Billion Generated By Sportsbook (Update)

Published: Thursday, November 16, 2006 Online-Casinos.com

$3.3 BILLION REVENUES GENERATED BY BUSTED SPORTSBOOK (Update)

$2.5 million taken in bets every day

The gambling website Playwithal.com, busted by New York police and justice authorities this week generated over $3.3 billion in revenues over the past 28 months that it has been in existence prior to being shut down, police have revealed at a press conference.

27 people, several of them closely involved in the US sporting and poker scene were detained in the arrests, which flowed from a long running covert investigation by the authorities in four states. Search warrants issued in connection with the criminal charges resulted in the seizure of computer equipment and records.

The Gambling911 portal claims that other investigations are currently under way using similar investigation methodology. One technique currently being resourced is the wiring of site servers similar to that used in phone tapping wires.

However, claims by the authorities that the huge bust was the first carried out under the new US Unlawful Internet Gambling Enforcement Act are apparently mistaken - the charges made public by the DA's office are felony violations of the Penal Law (Article 460 Enterprise Corruption), and (Article 225 Gambling Offenses)

Investigators said the illegal operation, based in New York City's borough of Queens, was alleged to have taken in $2.5 million a day over the last 28 months and was the largest they had ever broken up.

"It rivals casinos for the amount of betting," New York Police Commissioner Raymond Kelly told a news conference. "The magnitude of this really boggles the mind." The Queens DA Richard Brown added that the case was the first time that a Web designer and an offshore-based Internet company have been charged with directly participating in a criminal enterprise.

Among those indicted are the Web site's designer, Primary Development of Farmingdale, N.Y., and its CEO Maurice Freeman. Also charged is the site's security provider, Prolexic Technologies of Hollywood, Fla. In carrying out the alleged conspiracy, the indictment claims Primary Development created playwithal.com specifically tailored to "meet the needs" of James W. Giordano and his son-in-law, Daniel B. Clarin. Digital Solutions, S.A., a company incorporated under the laws of Costa Rica, and its American counterpart, D.S. Networks, S.A., are charged with providing the site with its servers, data and software.

Playwithal is accessible both online and through a toll-free telephone number. Although the site is hosted in Tampa, Fla., its servers and "wire room terminal" are situated on St. Maarten or, more recently, in Costa Rica.

The Web site functioned as a computerised betting sheet and was operated by professional poker player James Giordano, 52, of Pine Crest, Florida, who was charged with being the scheme's bookmaker by taking the bets.

Bets through the site and through a toll-free "800" number were taken on horse racing, football, baseball, basketball, hockey, golf, car racing and tennis.

Frank Falzarano, 52, of Seaford, New York, was charged as a "runner" in the scheme and identified by authorities as a scout for baseball's Washington Nationals and a former scout for the San Francisco Giants.

Arrests were made in New York, Nevada, Florida and New Jersey and charges in the indictment include enterprise corruption, money laundering, promoting gambling and conspiracy.

Seized in the bust were four Manhattan condominiums, millions in cash, tens of thousands of dollars in casino chips from Las Vegas' Bellagio casino, rare art, jewelry, gold coins, and a football signed by the 1969 New York Jets championship football team. In addition to the criminal charges; Queens County District Attorney Richard A. Brown is pursuing a $500 million asset forfeiture case against 20 of the defendants

"Internet gambling is a multi-billion-dollar worldwide industry that for too long has operated with impunity," Brown said. "The defendants are accused of running a tightly knit and an incredibly lucrative - and illegal - global gambling operation."