Canadian man caught laundering $350 million in US online casino payouts
Aug 7, 2009
While the US online gambling ban is currently being fought on several fronts, lawmakers are still taking it very seriously. The situation is tricky – online gambling in the US is not illegal, but banks are not allowed to process payments to or from online gambling sites, making it difficult for US players to fund their accounts and collect their winnings.
Douglas Rennick, a 34 year old Canadian, has been indicted for helping US players cash out. Since 2007, Rennick has allegedly used a series of US bank accounts, opened under false corporate names, to receive winnings from offshore internet casinos and distribute them to US players. Rennick intentionally mislead the banks about how the accounts were being used, and now faces charges of bank fraud and money laundering. If prosecuted, he faces fines and a possible prison sentence. More than $560 million in proceeds from this operation will be ceased.
Despite situations like this, many US players continue to enjoy online gambling. The fact is that individual players have never faced legal trouble in the US for internet gambling. There are dozens of online casinos hosted around the world that still accept US players, offering real-money blackjack games and tournaments to players of every level.
The tide seems to be turning, and now there are two bills – one in the House and one in the Senate – which attempt to overturn the current US online gambling laws and to legalize and regulate internet gambling in the country. There are a lot of companies counting on things to change. It seems likely, but only time will tell.
Tags: bank accounts, bank fraud, Casino, Douglas Rennick, Electronic commerce, Gambling, internet gambling, Judicial Event, Money laundering, offshore internet casinos, online casino, online casino payouts, online casinos, Online gambling, online gambling sites, Online poker, Senate, United States, USD