Touts go to Jail

[GrandGouda]

There's a reason Dr. Jack has such a strict anti-tout policy. Touts are scum. Read on...

Book thrown at Florida bookies

By Stephen Nover
Mon, Aug 9, 2004

Operating a sports handicapping service in the United States is perfectly legal, but better be smart about it.

That advice comes courtesy of Joseph Kelly, an American gaming lawyer and co-editor of the Gaming Law Review.

“Nothing for a handicapper to worry about unless he does something stupid,” Kelly said during the recent BoDog Handicapping Conference in Las Vegas.

Unfortunately there are plenty of stupid, greedy touts preying on ignorant people, some suffering from a gambling addiction.

Eyebrows were raised in the sports gaming industry when 14 men involved with a sports service in Fort Myers, Fla., were arrested last month. One already has pled guilty. He faces a maximum of two years in prison and up to a $250,000 fine.

If the government, be it state or federal, starts arresting people for selling their sports opinion then things have reached an all-time low. However, in this case, far more is involved. Fraud is the key word, says Kelly. If there are allegations of fraud, law enforcement could get involved.


Asking a potential customer to pay $15,000 for inside information on a game is fraud, Kelly said. Enforcement agencies should crack down on scammers and unscrupulous marketing people claiming to be handicappers, who lie about their records, promise inside information, run boiler room operations and hassle people on the phone.

These Florida guys were drawing customers by telephone solicitation, running two websites and having a radio talk show. They referred their customers to certain offshore Internet books. These books then allegedly provided the Florida sports service access to their clients’ betting information and account balances.

Reportedly the sports service guys earned referral fees if their customers bet with these books. So they were acting as agents.

“If you start accepting a part of the profits then you’re getting into a dark shade of gray,” Kelly said.

This comes from Kelly, acknowledged as one of the few experts in gaming law. So it’s hard to define exactly what is legal and what isn’t in the murky world of online sports gaming.

Where a sports service can find legal trouble is if it shares with the Bookmaker any profit made from the clients it recommends to them. Not only is this unethical, law enforcement sees the handicapping service being part of illegal bookmaking. They then can prosecute them under the Wire Act.

I don’t shed any tears when scammers like the Florida bunch get nailed. The handicapping industry unfortunately is polluted with fakes and bad guys. They make it tough for the legitimate ones.

So this prosecution is good. The government is saying if you’re operating in such a sleazy, rip-off manner we’re going to search for things to come after you.

Hyping things in an unrealistic and high-profile manner is a red flag to government. Tout services operating this way better not be hiding anything, because the government is going to search every nook and cranny to find something. Chances are they will.

[dollarbills]

nice

[Joe D]

I believe this is the group from the National Sports Consultants.

[Blackbeard Pimp]

those **** bags called me a while back and kept on callin, at least they gave me some free picks to fade!

[Joe D]

They were being sued by many former clients.

[GTM 2.0]

Some of the most refreshing news I've heard in quite a bit.

[The Judge]

Originally Posted by TDS

I believe this is the group from the National Sports Consultants.

I think that's right, this happened almost two years ago. Here's a link to an article about the bust:

NCS Busted!

[jonnyblaze]

What? You dont want their picks? They got inside information

[PigSkinTerror13]

good article... it's wrong to feed off of a person's addiction

[Jimmy K]

i'm not someone who is against people getting paid for their picks, if people pay someone for picks, so be it, the more power to them. these guys crossed the line though, glad to see them dealt with.

[Will]

why do these touts operate out of Florida?

[skippy]

Originally Posted by BigWill

why do these touts operate out of Florida?

Because it would be quicker to get to Costa Rica or any other Caribbean destination should the Feds come looking for them.

[Will]

Originally Posted by skippy

Because it would be quicker to get to Costa Rica or any other Caribbean destination should the Feds come looking for them.

really?

[Blackbeard Pimp]

Are you kidding???????????????? Will please tell me you're not so gullible!
Texas, zona, new mexico, cali, etc...hell Louisiana and Nevada are closer to Costa rica than florida!
That is NOT the reason...besides, doesn't matter how quick it is to CR not like they're gonna walk there like emigrants. LOL

[Will]

Originally Posted by Blackbeard Pimp

Are you kidding???????????????? Will please tell me you're not so gullible!
Texas, zona, new mexico, cali, etc...hell Louisiana and Nevada are closer to Costa rica than florida!
That is NOT the reason...

it seemed reasonable since its close to the caribbean..but there has to be another reason too