A resolution to the BetOnSports case has been a long time coming. Ever since 2006, two years ago, the company has been under fire from federal authorities in the United States for promoting illegal online gambling. This week, three of the players involved in the case plead guilty in a court in St. Louis, Missouri, reports the St. Louis Post-Dispatch. William Hernan Lenis, Will Lenis, and Manny Lenis have become the first “individuals to plead guilty in the case involving BetOnSports, which was once one of the largest online gambling companies in the world, and the first convictions of a ‘non-gambling entity’ like an advertising or marketing company for a gambling-related crime.” The St. Louis Post-Dispatch was on hand reporting the news breaking in its own backyard.
An Associated Press story notes that Will Lenis is guilty of “transmission of wagering information.” Manny Lenis was guilty of “failing to pay a wagering tax.” William Hernan Lenis was guilty of “interstate transportation of gambling paraphernalia.” None of the three was handed down their sentence this week; instead, sentencing will take place in October. William’s attorney, Alan Ross, told the Associated Press, “They have nothing to do with the operation of the Web site, gaming — nothing. The government has launched this campaign against Internet gambling. Unfortunately, they sometimes leave in the wake the people who were not necessarily involved.”
The crimes in question surrounded bringing an advertising presence to sporting events around the United States. The St. Louis Post-Dispatch notes that, at a Rams (NFL) game in 2002, RVs were loaded with phones to enable wagers to be placed by fans attending the game. The Lenis trio, however, did not actually conduct wagering or set lines. Instead, the facilitation of sports gambling by marketing activities was enough to raise the red flag to federal authorities.
The investigation into BetOnSports in the U.S. escalated in 2006, the same year that Congress passed the Unlawful Internet Gambling Enforcement Act (UIGEA), which prohibited the transfer of funds from players to online gambling establishments. However, the Associated Press notes that the charges against BetOnSports were made by citing the Wire Act of 1961. That law “prohibits placing bets on sports events over the phone.”
If a person attempts to access the BetOnSports website from an IP address within the United States, he or she is met with this message: “This website does not accept wagers on sports or sporting events from persons in the United States. It is a violation of United States Law to transmit sports wagers or betting information to this website from the United States.” A press release follows the disclaimer that says that BetOnSports is working to gather funds to pay its creditors and employees.
Congressman Pete Sessions (R-TX) recently introduced legislation that would focus the UIGEA’s regulations on shutting down the online sports book industry in the United States. The Republican-led bill has four Democratic co-sponsors: Jesse Jackson Jr. (Illinois), Marion Berry (Arkansas), William Delahunt (Massachusetts), and Gene Green (Texas). The bill has already seen opposition from the Poker Players Alliance, American Gaming Association, and several Congressional offices.
Regardless, no new legislation can be debated until the United States Congress returns from its August recess after Labor Day.
