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JackTrade Pleads Guilty To Illegal Gambling Charge

US betting firm forfeits $2 million seized in 2007 raid in plea bargain
The Las Vegas Sun reports on the culmination of what it describes as a long and secretive investigation into a now defunct Las Vegas betting firm who pleaded guilty to an illegal offshore sports wagering charge earlier this month.
A Government asset forfeiture suit which was kept under strict seal to protect witnesses, wiretap information and grand jury information which was generated from the long-running investigation, thought to have been initiated prior to 2006, was finally unsealed in June of this year and heard in a U.S. District Court on November 19 in which Las Vegas betting firm Jacktrade LLC admitted to a violation of the Federal Wire Act in 2007.
The investigation which was managed by federal agencies and Nevada gaming regulators led to prosecutors charging Jacktrade LLC with routing sports bets illegally through offshore sites.
Going back to 2007, a raid on office's led by federal agents cast Jacktrade and sister company International Racing Group (IRG) into the public eye.  Youbet had acquired IRG two years prior for a $3 million consideration along with an additional payment based on its performance but shut down the company following the raid on its premises.
In June 2010, Youbet was bought by Churchill Downs Inc. who paid a $131 million consideration.
Federal agencies picked up on IRG during an investigation into Jeffrey and Michael Jelinsky, who were sentenced to prison in 2009 for processing millions of dollars in bets from clients through offshore accounts and terrestrial casinos in Southern Nevada.
While IRG maintained it only facilitated betting at horse and dog tracks, Nevada gaming regulators claimed customers placed telephonic bets which were processed through an office in Curacao.  IRG's incentive to push the wagering business was to receive the additional payment based on performance agreed in the Youbet acquisition deal.
In another twist, Michael Jelinsky allegedly set up IRG customer accounts using his own Social Security number said LVS.
"This allows Michael to claim gambling losses that were not his own and to create a tax windfall (generally in excess of $1 million) for himself at the end of each year," a court declaration said. "Additionally, this enables Michael’s customers to remain anonymous and avoid filing any IRS documents."
JackTrade president and one of three owners of IRG, Louis Tavano was said to be operating IRG from his home and taking bets from Nevada residents.  Tavano was not licenced by the Nevada Gaming Commission and taking bets from Nevada residents to participate in offshore wagering was in violation of federal law.
According to court records, wire payments from an IRG account to customers totaled $29.3 million over a period of two-years with 70 percent of that going into Nevada residents' accounts.
JackTrade LLC's plea bargain with the authorities agrees to forfeit over $2 million in cash and other assets seized more than five years ago.  Louis Tavano, Richard Tavano and James Scott, the co-owners of IRG, will seemingly escape criminal charges as part of the settlement.
Daniel Bogden, the U.S. Attorney for Nevada said in a statement: ''Such illegal gaming operations take business from legal gaming operations, preventing state and local governments from receiving important tax revenue, and serve as a major source of income for organized criminal groups, both in the United States and abroad.''
This case, while similar in nature, is reported to be unrelated to the Queens, New York District Attorney action against an alleged online sports betting ring that saw the arrest of 25 people earlier this month which included Michael Colbert, a former executive with Cantor Gaming

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Gambling News :

Phil Ivey Loses Borgata Casino - Phil Ivey has lost in his four-year legal tussle with the Borgata over baccarat winnings; on Friday a US federal judge ruled that he and a companion violated New Jersey state gambling regulations in the manner in which they won nearly $10 million playing at the Atlantic City casino.

NYX Gaming in deal with Endemol - "Endemol Shine’s IP will be a strong addition to the NYX portfolio of content and we look forward to working together to bring additional instantly recognizable brands to market.”

NEW CAMBODIAN GAMBLING LAWS - After more than two years of debate and drafting, Cambodia may be closing in on final agreement regarding its proposed gambling law changes.

Congress To Review US SportsBetting Restrictions - Did the American Gaming Association’s campaign influence the decision to take another look at the 1992 Professional and Amateur Sports Protection Act?

Playtech Acquires ECM Systems - Online gambling soiftware provider Playtech plc has announced the acquisition of a ninety percent stake in UK bingo software developer ECM Systems for a consideration of GBP 14.9 million.

Marks and Spencer store Manager steals to Gamblie Online - The Cambridge News reports that a 28-year-old manager of a Marks and Spencer store, Martin Trenor, has been jailed for three years for stealing GBP 254,538.11 in shop takings over the course of a year and spending it almost immediately at online gambling websites.

Chinese Gambling crackdown could damage high roller revenue - Fast-moving events this week have seen Australian media reports quoting hundreds of millions of dollars wagered by Chinese high rollers in Aussie land casinos, offset to some extent by Crown claims that this whale gambler" demographic generates only 12 percent of turnover.

EvenBet Open Face Chinese Poker - Open Face Chinese Poker online games provider EvenBet has reported that its Open Face Chinese Poker product is gaining traction with games recently integrated for desktop action at the Malta-licensed operational site Poker Grant.

PartyPoker Millions tournament guarantee Now GBP 6 million - Online poker operator PartyPoker announced Thursday that it is to boost its PartyPoker Millions tournament guarantee by a million sterling to GBP 6 million, claiming it is now the biggest prize pool guarantee in European poker history.

2016 EPT Malta - The European Poker Tour is off to a good start in Malta, with German pro Dietrich Fast claiming a well-earned Euro 174,000 main prize in the Euro 10,000 buy-in Single-Entry Rebuy event.

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