NEW YORK — A Canadian company has agreed to pay $9.1 million to resolve charges that it facilitated illegal Internet gambling by processing payments for U.S. customers, prosecutors announced Thursday.
Federal prosecutors in New York said a subsidiary of ESI Entertainment Systems processed more than $2 billion in wagers for American gamblers between 2003 and 2007, a time period when there was confusion within the industry over the reach of U.S. law.
The company abruptly halted payments and began cooperating with prosecutors after executives of a rival Internet payment company that specialized in gambling, Neteller PLC, were arrested after setting foot on U.S. soil.
As part of a deal to avoid similar prosecution, ESI has admitted to criminal wrongdoing, will turn over some of its profits and implement monitoring procedures to make sure its services aren't being used for gambling.
Executives at ESI, which is traded on the Toronto Stock Exchange, did not return phone calls seeking comment Thursday.
The case involved electronic payments made to gambling websites based outside of the U.S., but used heavily by Americans. Customers could transfer money to accounts controlled by ESI, which would then be used to cover their wagers.
The company said on its website that its revenue fell precipitously after the subsidiary that handled electronic payments for gamblers, Citadel Commerce Corp., stopped doing business with U.S. customers.
No comments:
Post a Comment