Canadian Company ESI Paying $9.1 Million In Online Gambling Case

Internet gambling is not yet regulated in the United States. While Representative Barney Frank continues to push his Bill to regulate the industry, the fallout from the UIGEA is still being felt.

Canadian Company ESI has come to an agreement with the United States on Thursday on a deal that would have the company pay $9.1 million. In exchange, the company would walk away without any prosecutions.

ESI pulled out of accepting American payments toward gambling websites after another company, Neteller, had executives arrested in the United States. The Neteller incident was enough to scare off ESI, and allow them to begin cooperating with prosecutors.

ESI has now admitted that they were processing the American money. They have also agreed to pay back a portion of what they received in the transactions. They also must put in place a system to help ensure that processing would not take place for Internet gambling.

The company has seen a drastic dip in revenue since pulling out of the online gambling market. The fact that the company avoided prosecution, however, is a major win for ESI. The company is traded on the Toronto Stock Exchange, and could not afford to go through a lengthy court case.

The company claims that they accepted the gambling payments from Americans between 2003 and 2007, at a time when the laws were a bit confusing.

June 6, 2008
Posted By Tom Jones
Staff Editor, CasinoGamblingWeb.com
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