Following an investigation by Homeland Security and the IRS, two men in Rochester, New York have been sentenced for their roles in managing, financing, and running an illegal sports betting ring from April 2019 through April 2021.
Louis P. Ferrari II, 42, and Dominic Sprague, 40, were convicted Thursday on charges of conspiracy to transmit wagering information in interstate commerce and conducting an illegal gambling business. Chief U.S. District Judge Elizabeth A. Wolford sentenced both men to three years' probation, including a ten-month home detention. Ferrari also forfeited $150,000 in gambling proceeds, with Sprague forfeiting $92,000.
Details of the operation
From 2019 to 2021, Ferrari and Sprague conspired with several other individuals to help finance, manage, and run their illegal bookmaking business. The gross daily revenue was estimated at $2,000.
Ferrari and another conspirator, Anthony Amato, registered accounts for others involved with the bookmaking operation at sport700.com. Sprague and several conspirators would call and text Ferrari to place, edit, and remove wagers on sporting events on sport700.com for individual bettors.
Ferrari would then call and message Amato to register sports700.com accounts, which included changing passwords and placing, editing, or removing bets for the operation’s conspirators and other bettors. Money owed to the operation and bettors was collected and sent by Ferrari, Sprague, and co-conspirator Joseph Lombardo.
The primary payment methods included CashApp, PayPal, Venmo, Zelle, and cash. After collecting money from individual bettors who wagered and lost on sport700.com, a portion was kept by Sprague and Lombardo, while the rest of the payment went to Ferrari.
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Clamping down on illegal bookmakers
The rise in licensed and regulated online sportsbook operators since PASPA legislation was overturned in 2018 has led to more scrutiny of illegal bookmaking and casino operations.
In July, a former illegal casino storefront in Flint, Michigan was ordered to pay $3,500 after being shuttered by the Michigan Gaming Control Board.
The International Betting Integrity Association (IBIA) has also become a prominent partner at various sportsbook operators, aiming to identify suspicious betting activity and prevent match-fixing. At the same time, legally licensed sportsbooks are still dealing with a federal sports betting excise tax, while offshore and illegal bookmaking operators are avoiding these penalties, further incentivizing their existence.
