Foreign firms have been keeping a close eye in the US

Online gambling domains may soon change after Bodog indictment

2012-03-06
Reading time 1:39 min
(US).- The US Department of Justice finally indicted one of the biggest executives in the history of online gambling. Calvin Ayre had flaunted for years the idea that he was skirting US laws on his way to becoming a billionaire through his Bodog network of online gambling sites. The sports betting site is one of the most popular in the world for gamblers.

The US government finally put an end to Ayre's assertion that he was not breaking any laws with Bodog. Ayre and several other executives were indicted in Baltimore, Maryland, on charges of running an illegal gambling operation. The government seized the Bodog domain name, but not in the fashion that most would expect.

Instead of going to Canada, the country where the Bodog domain is licensed and registered, authorities went to Verisign. The move to go to Verisign, which oversees all .com domains, has foreign companies concerned about their domains as well. The assertion from analysts is that because the .com domains are hosted in the US, they are fair game under US laws.

Already, several gaming experts have said that this could be an opportunity for foreign companies that are licensed in other areas of the world outside the US. Internet providers may soon push online gambling sites to register with other than a .com domain.

The seizure of the Bodog.com domain does not do much to hurt the business of the Morris Mohawk Gaming Group. Ayre claims that the Bodog brand was turned over to the group, and in turn, the company has been transferring the branding in the US from Bodog to Bovata.

Foreign companies have been keeping a close eye on the legal proceedings in the US over the past year. In 2011, the US Department of Justice indicted PokerStars, Absolute Poker, and Full Tilt Poker. That indictment sent shock-waves through the Internet gaming industry, and has led lawmakers in the US to explore regulating online gambling.

Companies such as 888 Holdings and William Hill have started to pursue partnerships with US gaming companies, with the hope the partnership will help the companies gain licenses to operate in the US when the laws change. If Ayre and Bodog are found to have taken bets from US gamblers, there would be little legal ground to debate. The Department of Justice made it clear late last year that online sports betting is illegal under the 1961 Wire Act.

Leave your comment
Subscribe to our newsletter
Enter your email to receive the latest news
By entering your email address, you agree to Yogonet's Terms of use and Privacy Policies. You understand Yogonet may use your address to send updates and marketing emails. Use the Unsubscribe link in those emails to opt out at any time.
Unsubscribe
EVENTS CALENDAR