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by: Rick Sallinger
(CBS4) DENVER Lawmakers have gone to great lengths to try to stop gambling on the Internet. One of the most effective methods has been banning the use of American issued credit cards, but Internet casinos based outside the U.S. are getting around those laws. A CBS4 investigation reveals how gamblers are still able to place their bets.
CBS4's Rick Sallinger started by going to an online gambling Web site. It may look like a game, but it's serious business.
CBS4 went into the site called "Full Tilt Poker." $42,000 was on just one table Sallinger viewed. Online gambling was a $15 billion a year business until Congress put a major dent in it. It created new laws and enforced existing ones to make it illegal to use U.S. credit cards to gamble online.
One Colorado player CBS4 spoke with asked that we not use his name since gambling online is illegal. Despite the credit card ban, he has been able to use his Visa card to place bets on "Full Tilt Poker." What he discovered is the bets have been showing up on his Washington Mutual Visa bill under the names of different businesses.
He told CBS4, "I had made several deposits on several different days to the poker room, but none of them were listed as 'Full Tilt Poker.' They were listed as different companies I had never heard of."
The charges appear under a variety of obscure names on his monthly credit card bill disguised by a middle man so as not to reflect that they involved Internet gambling.
When asked if it appears they are trying to circumvent the law, IRS criminal division special agent John Harrison replayed, "They are, in a number of ways." He said this looks like laundering of credit card charges, something they've seen before.
In Salt Lake City seven people and four companies are under indictment accused of setting up a scheme to misclassify credit card transactions in order to fool banks into processing internet gambling charges.
"These charges do carry heavy penalties, they are serious crimes," said assistant U.S. Attorney Loren Washburn.
The gambling sites are based outside of the U.S. They also have other ways to get around the U.S. credit card ban. One is by encouraging players to obtain Canadian or other non-American issued credit cards.
CBS4 also found a website informing gamblers they can beat the ban by betting with prepaid phone cards from an Australian company.
CBS4 asked IRS special agent Harrison, "Would it be illegal to buy a phone card and use that phone card to bet?"
Harrison replied, "I think it would be."
When the poker player from Colorado we observed tried to cash in his chips with "Full Tilt Poker" he was informed of delays.
The player told CBS4, "They actually appeared to be asking for sympathy on my part in the delay because it was so hard to get around American law."
Full Tilt Poker did not respond to our questions submitted by email.
As loopholes are being closed, it appears more are being opened. Shutting down Internet gambling may a difficult hand to beat.
(CBS4) DENVER Lawmakers have gone to great lengths to try to stop gambling on the Internet. One of the most effective methods has been banning the use of American issued credit cards, but Internet casinos based outside the U.S. are getting around those laws. A CBS4 investigation reveals how gamblers are still able to place their bets.
CBS4's Rick Sallinger started by going to an online gambling Web site. It may look like a game, but it's serious business.
CBS4 went into the site called "Full Tilt Poker." $42,000 was on just one table Sallinger viewed. Online gambling was a $15 billion a year business until Congress put a major dent in it. It created new laws and enforced existing ones to make it illegal to use U.S. credit cards to gamble online.
One Colorado player CBS4 spoke with asked that we not use his name since gambling online is illegal. Despite the credit card ban, he has been able to use his Visa card to place bets on "Full Tilt Poker." What he discovered is the bets have been showing up on his Washington Mutual Visa bill under the names of different businesses.
He told CBS4, "I had made several deposits on several different days to the poker room, but none of them were listed as 'Full Tilt Poker.' They were listed as different companies I had never heard of."
The charges appear under a variety of obscure names on his monthly credit card bill disguised by a middle man so as not to reflect that they involved Internet gambling.
When asked if it appears they are trying to circumvent the law, IRS criminal division special agent John Harrison replayed, "They are, in a number of ways." He said this looks like laundering of credit card charges, something they've seen before.
In Salt Lake City seven people and four companies are under indictment accused of setting up a scheme to misclassify credit card transactions in order to fool banks into processing internet gambling charges.
"These charges do carry heavy penalties, they are serious crimes," said assistant U.S. Attorney Loren Washburn.
The gambling sites are based outside of the U.S. They also have other ways to get around the U.S. credit card ban. One is by encouraging players to obtain Canadian or other non-American issued credit cards.
CBS4 also found a website informing gamblers they can beat the ban by betting with prepaid phone cards from an Australian company.
CBS4 asked IRS special agent Harrison, "Would it be illegal to buy a phone card and use that phone card to bet?"
Harrison replied, "I think it would be."
When the poker player from Colorado we observed tried to cash in his chips with "Full Tilt Poker" he was informed of delays.
The player told CBS4, "They actually appeared to be asking for sympathy on my part in the delay because it was so hard to get around American law."
Full Tilt Poker did not respond to our questions submitted by email.
As loopholes are being closed, it appears more are being opened. Shutting down Internet gambling may a difficult hand to beat.