Posted 06/11/09 at 10:30:46 AM by Paul Lilly

In the movie White Men Can't Jump, Rosie Perez, playing the part of Woody Harrelson's philosophical girlfriend, said, "Sometimes when you win, you really lose." She wasn't talking about online gambling, but she may have well have been, as that's the situation thousands of Internet gamblers find themselves in.

More specifically, federal prosecutors have convinced four American banks to freeze payments of at least $33 million owed to 27,000 players at four offshore poker sites, the New York Times reports. Two of those sites -- PokerStars.com and FullTiltPoker.com -- sponsor some of the world's top tournament poker players and frequently air ads on television in the U.S.

John Pappas, the executive director of the Poker Players Alliance, said prosecutors have asked Citibank, Wells Fargo, and two smaller banks to freeze funds that belong to Allied Systems and Account Services, two companies that process payouts for the aforementioned poker sites.

"It's very aggressive, and I think it's a gamble on the part of the prosecutors," said I. Nelson Rose, a professor of law at Whittier Law School in Costa Mesa, California.

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Posted 04/27/09 at 03:37:29 PM by Paul Lilly

Still like the Boston Celtics' chances of winning the NBA championship despite the likelihood of Kevin Garnett missing the entire playoffs? No matter who you think will win, if you're looking to place a bet online, you'll need to trust an overseas gambling site in order to put your money where your mouth is. That's because the U.S. Congress chased away U.S.-based online gambling outlets several years ago as part of the Unlawful Internet Gambling Enforcement Act of 2006, a law which some say may be overturned, according to a report in The New York Times.

Representative Barney Frank, Democrat of Massachusetts, is expected to lead the charge at overturning the 2006 bill in matter of days.

"He supports the repeal and wants to move forward on it," said Steve Adamske, communications director for the House Financial Services Committe.

Despite the 2006 Act, online gambling generated revenue of $6 billion last year in North America, or more than a quarter of the global total of $22.6 billion. That's a $5 billion increase from 2006. According to PricewaterhouseCoopers, if the ban is overturned, the U.S. government could potentially pocket more than $50 billion over the next 10 years.

Those who oppose overturning the ban point out that online gambling makes it too easy to get in over your head and can break up families. Some sports leagues also voiced concern that online betting could increase the risk of game-fixing.

Should the ban be repealed? Hit the jump and post your thoughts.

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Posted 02/17/09 at 01:40:39 PM by Paul Lilly

Contrary to popular belief, the practice of counting cards is not illegal, nor is it considered cheating. But as private establishments, casinos can (and do) remove and even outright ban patrons who are caught tipping the odds in their favor. And what is illegal is using any kind of device to aid in counting cards, which then makes the practice a felony.

As such, Nevada gambling regulators have put the word out to casinos about a new card counting application available to iPhone and iPod touch owners. Nevada first learned of the program after officials at an Indian casino in California discovered some of its customers were using the app.

On a related note, should someone call or text your iPhone in the middle of a Blackjack game, it's probably best to ignore it. Not only would the alternative be obnoxious, but given the above, it could get you escorted out of the casino. And if you believe what you saw in the movie 21, having your trendy phone confiscated could be the least of your worries.

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Posted 12/26/08 at 10:50:16 AM by Paul Lilly

Protip: If you're doing something highly illegal involving millions of dollars in embezzled funds, don't leave all the incriminating details laying around on your desk unattended. Such might be the downfall of Ausaf Umar Siddiqui, VP of Fry's Electronics, who now stands accused of embezzling over $65 million after another Fry's executive discovered a suspicious spreadsheet laying on Siddiqui's desk.

After turning over the spreadsheet to the authorities, the IRS called shenanigans on Siddiqui's business practices, accusing him of cutting deals with some of Fry's largest suppliers to buy larger orders of goods in return for kickbacks and inflated commissions. According to the allegations, Siddiqui made a practice of buying goods at higher prices in exchange for kickbacks of up to 31 percent of the total sales prices. These kickbacks where then funneled into a company Siddiqui set up called PC International, the IRS claims.

According to the report, five unnamed vendors deposited more than $65 million into accounts owned by PC International, a hefty portion of which was used to fun Siddiqui's gambling habits. The IRS found $17.9 million paid out to Las Vegas Sands Corp, the operator of the Venetian Casino Resort. The report notes that the casino would often fly Siddiqui out to Vegas via private jets.

Siddiqui, who was arrested at Fry's headquarters, is currently being held on $300,000 bond. No court date has yet been set, though a judge in the case has given the government 20 days to file formal chargers of wire-fraud, which prosecutors plan to do.

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