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BY Erica Virtue
Observer writer
Acting on a tip-off from British law enforcement
agencies, Jamaican authorities have shut down a
multi-million dollar company allegedly operating an
illegal Internet betting operation out of the
northcoast resort city of Montego Bay, Sunday Observer
sources said.
An estimated 200 people have lost their jobs as a
result of the closing down of Olympic Sports, which
the sources said was raking in between $10 million and
$15 million monthly from bets taken over the Internet
and the telephone.
Olympic Sports, which operated out of the Montego Bay
free zone, is also facing money laundering charges,
the sources said.
The Betting Gaming and Lotteries Commission (BGLC) and financial
investigators have cited the company for operating contrary to the licence
it was granted by JAMPRO, the state’s one-stop clearing house for investment
proposals. If found guilty, the company officials could face fines of
$500,000 or jail terms of at least 18 months for operating illegal gaming,
and stiffer fines for money laundering. The headquarters of Olympic Sports
is listed as Montego Bay Free Zone and toll free access is available for
North America, Europe and Asia, the Middle East and mid-Atlantic countries.
Its marketing arm in North America is to be reached at 1-888-FAST-BET. Bets
are taken from as far away as New Zealand and Australia and toll free
numbers are also available for Japan, Korea and Greece. Industry sources
told the Sunday Observer that the company was granted a licence to operate a
telemarketing agency, but it began taking bets from individuals worldwide,
through calls made to its 1-800 number. According to sources, the BGLC’s
attention became focused on the company’s activities when the gaming Board
of Great Britain reported the company to local authorities in 2000 “as
suspects in illegal bookmaking”. “The BGLC wrote to the company citing the
allegations and advised it that if the allegations were true, it was
operating contrary to its licence,” the usually reliable sources said.
However, the company’s high-profile local law firm fired back, telling the
BGLC that “it did not need a licence to do what it was doing”. Allegations
are that for months, paperwork flew between the BGLC and the company’s
attorneys. Eventually, acting on apparent advice from its lawyers, Olympic
Sports applied for a licence in April 2003. However, after due diligence
investigations, the BGLC rejected the company’s application. Repeated
efforts by the newspaper to reach BGLC chairman Walter Scott were
unsuccessful last week and a search of the website of the Registrar of
Companies did not show the company among those registered here. Efforts to
identify or locate its principals were also futile. However, the well-placed
sources said “the company’s request was rejected in September, as one of the
principals of Olympic Sports was deemed to be not a fit and proper person”.
A renewed exchange of correspondence took place between the BGLC and the
company and its attorneys, and in March the decision was taken to shut it
down and a summons issued for it to appear in court. A date has been set for
Wednesday, May 19. Olympic Sports faced further trouble when a fortnight ago
it was cited for money laundering, by an undisclosed Government agency. “Two
weeks ago, financial investigators raided the company, seized records and
other documents relating to the company operations,” Sunday Observer sources
said. Industry players said the crackdown on illegal gaming entities was
being done under pressure from overseas law enforcement agencies. Many of
the entities are suspected of laundering money for drug traffickers, as
banking regulations have forced tighter scrutiny of account holders,
especially foreign account holders. The multi-billion-dollar gaming industry
has been hit by fraud, and several persons have been prosecuted for running
counter operations to those operated by the former Jamaica Lottery Company
and Supreme Ventures.
Observer writer
Acting on a tip-off from British law enforcement
agencies, Jamaican authorities have shut down a
multi-million dollar company allegedly operating an
illegal Internet betting operation out of the
northcoast resort city of Montego Bay, Sunday Observer
sources said.
An estimated 200 people have lost their jobs as a
result of the closing down of Olympic Sports, which
the sources said was raking in between $10 million and
$15 million monthly from bets taken over the Internet
and the telephone.
Olympic Sports, which operated out of the Montego Bay
free zone, is also facing money laundering charges,
the sources said.
The Betting Gaming and Lotteries Commission (BGLC) and financial
investigators have cited the company for operating contrary to the licence
it was granted by JAMPRO, the state’s one-stop clearing house for investment
proposals. If found guilty, the company officials could face fines of
$500,000 or jail terms of at least 18 months for operating illegal gaming,
and stiffer fines for money laundering. The headquarters of Olympic Sports
is listed as Montego Bay Free Zone and toll free access is available for
North America, Europe and Asia, the Middle East and mid-Atlantic countries.
Its marketing arm in North America is to be reached at 1-888-FAST-BET. Bets
are taken from as far away as New Zealand and Australia and toll free
numbers are also available for Japan, Korea and Greece. Industry sources
told the Sunday Observer that the company was granted a licence to operate a
telemarketing agency, but it began taking bets from individuals worldwide,
through calls made to its 1-800 number. According to sources, the BGLC’s
attention became focused on the company’s activities when the gaming Board
of Great Britain reported the company to local authorities in 2000 “as
suspects in illegal bookmaking”. “The BGLC wrote to the company citing the
allegations and advised it that if the allegations were true, it was
operating contrary to its licence,” the usually reliable sources said.
However, the company’s high-profile local law firm fired back, telling the
BGLC that “it did not need a licence to do what it was doing”. Allegations
are that for months, paperwork flew between the BGLC and the company’s
attorneys. Eventually, acting on apparent advice from its lawyers, Olympic
Sports applied for a licence in April 2003. However, after due diligence
investigations, the BGLC rejected the company’s application. Repeated
efforts by the newspaper to reach BGLC chairman Walter Scott were
unsuccessful last week and a search of the website of the Registrar of
Companies did not show the company among those registered here. Efforts to
identify or locate its principals were also futile. However, the well-placed
sources said “the company’s request was rejected in September, as one of the
principals of Olympic Sports was deemed to be not a fit and proper person”.
A renewed exchange of correspondence took place between the BGLC and the
company and its attorneys, and in March the decision was taken to shut it
down and a summons issued for it to appear in court. A date has been set for
Wednesday, May 19. Olympic Sports faced further trouble when a fortnight ago
it was cited for money laundering, by an undisclosed Government agency. “Two
weeks ago, financial investigators raided the company, seized records and
other documents relating to the company operations,” Sunday Observer sources
said. Industry players said the crackdown on illegal gaming entities was
being done under pressure from overseas law enforcement agencies. Many of
the entities are suspected of laundering money for drug traffickers, as
banking regulations have forced tighter scrutiny of account holders,
especially foreign account holders. The multi-billion-dollar gaming industry
has been hit by fraud, and several persons have been prosecuted for running
counter operations to those operated by the former Jamaica Lottery Company
and Supreme Ventures.
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