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layabout

Pinnacle....

Post by layabout » Thu Oct 25, 2012 3:14 pm

FYI for any of you with accounts at Pinnacle, read story below from Las Vegas Review Journal that is breaking today. Not sure what the ultimate impact on Pinnacle may be, but if you have $$ there (living in US I do not)you should follow story. Press conference later today should provide more info.

Cantor Gaming sports book director arrested, faces eight charges

By Howard Stutz
AND Chris Sieroty
LAS VEGAS REVIEW-JOURNAL
Posted: Oct. 24, 2012 | 1:44 p.m.

Cantor Gaming sports book director Mike Colbert was arrested Wednesday in Las Vegas by state gaming agents in connection with a warrant filed by the district attorney in Queens County, N.Y.

Gaming and legal sources confirmed the charges involve PinnacleSports.com, one of the largest offshore sports wagering websites. Sources said agents for the website were arrested in several cities Wednesday.

Colbert, 32, was booked into the Clark County Detention Center. He faces eight counts of conspiracy, money laundering and enterprise corruption and is scheduled to appear Monday in Clark County District Court.

Jerry Markling, the Gaming Control Board's chief of enforcement, said Colbert was arrested at 6 a.m. at his home a short distance from the M Resort in Henderson. He was one of eight people arrested in Las Vegas on the New York charges. Others were Las Vegas residents Kelly R. Barsel, 42, Jerry M. Branca, 67, Steven S. Diano, 48, Brandt A. England, 49, and Joseph D. Paulk, 35, and Henderson resident Paul Sexton, 29.

Colbert is thought to be the only one with ties to Nevada's gaming industry.

Control board agents will continue to investigate the matter to see whether there were any regulatory violations, but Markling declined further comment on the matter, referring additional questions to New York prosecutors. A news conference is scheduled for this morning in Queens .

"It's a New York case. We are working with them," Markling said.

According to its website, PinnacleSports.com was established in 1998 and is licensed by the government of Curacao and the Alderney Gambling Control Commission.

Gaming and legal sources said the matter does not involve Cantor Gaming and is unrelated to its business in Las Vegas, which includes leased space in seven Las Vegas-area casinos - M Resort, Cosmopolitan of Las Vegas, The Venetian, Palazzo, Tropicana, Hard Rock and Palms - where it operates race and sports books.

Colbert oversees the company's race and sports book business and is chief oddsmaker.

Cantor Gaming officials would not comment on the arrest. The company is cooperating with Nevada gaming authorities and met with officials Wednesday at the M Resort, where Colbert is based.

M Resort opened in March 2009 as Cantor's first Las Vegas sports book and often took big wagers. M Resort officials did not respond to calls seeking comment Wednesday.

According to sports wagering publications, Colbert is a 10-year veteran of Nevada's race and sports book industry.

He is considered one of the industry's most respected personalities and routinely is quoted on sports wagering issues by national publications and on sports talk radio programs, including The Las Vegas Sportsline

In an interview last week with SportingNews.com, Colbert said that the National Football League and other groups opposed to New Jersey's efforts to legalize sports wagering lack strong arguments and that Cantor Gaming would explore opportunities there.

"The integrity argument, to me, is a complete facade," Colbert told SportingNews.

"It's a smokescreen that they're putting up there because it sounds good to maybe the average guy who doesn't understand the business. But if you're in the business and know what's going on, you know that if there is ever anything close to something shady, that we will be the ones that are able to point it out. That argument is so bad, and they continue to say it. It's kind of silly."

Colbert was described in a 2010 interview with Wired Magazine as someone who "has been around gambling all of his adult life."

The Associated Press contributed to this report. Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871. Follow @howardstutz on Twitter.

layabout

Re: Pinnacle....

Post by layabout » Thu Oct 25, 2012 5:19 pm

Update from ESPN below.


Authorities expose $50M betting ring
Updated: October 25, 2012, 1:05 PM ET
By Chad Millman | ESPN The Magazine

Queens District Attorney Richard A. Brown and New York City police commissioner Ray Kelly announced the indictment of 25 people Thursday following an 18-month investigation into illegal sports betting that spanned five states and allegedly yielded payouts of more than $50 million on horse racing, pro and college football, basketball, hockey and baseball.

"Illegal gambling is not a victimless crime," Brown said at a morning news conference. "Such unlawfully earned profits are often diverted into more insidious criminal enterprises."

A little more than 24 hours earlier, Nevada Gaming Control Board agents, who had been assisting New York investigators in the case since July 2011, arrested eight people in Las Vegas on charges of conspiracy, money laundering and enterprise corruption. Among those taken into custody was Mike Colbert, a prominent Las Vegas sports book director for Cantor Gaming.

The Las Vegas arrests initially were reported Wednesday by the Las Vegas Review-Journal on its website. The news caused a ripple effect throughout the insular, yet highly liquid, world of sports betting. While only $2 billion to $3 billion is wagered on sports each year in Nevada, the only state in which betting on individual sporting events is legal, it is estimated that another $500 billion is wagered worldwide by Americans, either with illegal bookmakers or via Internet betting sites.

The owners of Curacao-based Pinnaclesports.com, one of the most prominent sports betting websites, were named in the indictment.

"The ramifications of this are huge," one industry source told ESPN. "The guys involved had to be handling millions of dollars a week."

The professional sports betting world is a complex web of bookmakers, gamblers, people who make bets on behalf of gamblers, and others who collect those bets. It spreads from brick-and-mortar casinos in Nevada, to local bookies in nearly every American city, to Internet sports books mostly based in tropical locales such as Costa Rica and Antigua and Curacao. It is illegal for offshore books to accept wagers over the Internet from people in the United States. Those arrested Wednesday allegedly are agents hired to help gamblers circumvent those laws, as well as bookmakers, distributors and collectors.

"I know that people in the islands are crapping their pants right now," a source with ties to the offshore sports betting industry told ESPN. "The money involved in this is what moved point spreads."

Cantor Gaming, an affiliate of the New York-based financial services firm Cantor Fitzgerald, is not implicated. But Colbert has been a visible presence representing the nascent wagering company on the Vegas Strip. Cantor Gaming is trying to revolutionize the sports wagering business by using high-speed, Wall Street-style trading philosophies at the six Las Vegas sports books that it runs. It also has been at the forefront of mobile gaming efforts, which allow in-state residents to make bets at Cantor properties using mobile devices. Cantor has also pushed hard to make in-game wagering -- in which bettors can bet on plays and ever-changing odds of which team will win -- as a game is happening.

But mostly, the Cantor sports books and Colbert have become known for their willingness to take nearly any bet. Over the past several years, most Nevada-based sport books have placed limits on the size of the wagers they are willing to take, to mitigate any long-term losses. But Cantor became a favorite of professional bettors -- known around Las Vegas as sharps -- for inviting any wager, no matter the size. Boxing champion Floyd Mayweather often tweets pictures of the six-figure bets he has made at the M.

Cantor officials declined to comment. According to Jerry Markland of the Nevada Gaming Control Board, the investigation is ongoing.

The arrests come at a turbulent time for the sports betting industry. According to the National Gambling Impact Study, released in 1999, as much as $380 billion was bet illegally on sports each year in the United States at that time. That study predates the rise of online wagering which, until crackdowns by the federal government in recent years, had been relatively easy to access for U.S. bettors. Some industry estimates now put the total amount illegally wagered nationwide at $500 billion.

Many states struggling with crippling budget crises have made it known that they would support legalized, state-regulated sports betting to help generate revenue. In 2009, New Jersey sued the Department of Justice to overturn the Professional Amateur Sports Protection Act (PASPA), a 1993 law banning sports betting nationwide (four states that already had made sports betting legal -- Delaware, Montana, Oregon and Nevada -- were grandfathered in. At present, only Nevada and Delaware offer sports wagering).

New Jersey citizens also recently passed a referendum making sports betting legal in the event that the lawsuit, which has been winding its way through the courts for three years, is won. Meanwhile, the four U.S. major professional sports leagues and the NCAA have since sued New Jersey, saying the referendum violates PASPA.

A hearing in that case is scheduled for Dec. 18 in Trenton, N.J.

layabout

Re: Pinnacle....

Post by layabout » Fri Oct 26, 2012 2:15 pm

This story is starting to unfold like a modern day Goodfellas. Fascinating.

Gonna reveal all the ins and outs of how $$ moves from offshore sportsbook accounts through bookmakers in the US with mob ties and then through Las Vegas sportsbooks and back again. Wow.

Jockathan

Re: Pinnacle....

Post by Jockathan » Thu Nov 08, 2012 5:22 pm

I'd be interested in reading any updates you care to post Amigo. I should think there will be a book (no pun) written about what unfolds from any case(s).

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