Kahnawake CEO Says US Online Casino Seizures Are Citizens' Money

So, in an attempt to protect US consumers from being ripped off by potentially dishonest Internet casinos, the US government has decided to prevent the online gambling sites from honoring their debt.

Cash confiscated by the US government under forfeiture laws is not Bodog's, says Alwyn Morris, but any money seized in the US from online gambling sites "would be U.S. citizens' money en route to them." Morris, CEO of the Kahnawake's gaming organization that controls Bodog, pointed out that nobody's talking about how millions taken by the US Department of Justice could only be payments en route to US players.

Sources have indicated that the US is making progress in its case against Bodog's online casinos and founder Calvin Ayre. A federal judge this week gave the government permission to keep $9.67 million of $9.87 million seized last summer from Nevada bank accounts.

Forbes reports that the owner of the accounts, Edward Coudry, and associate Michael Garone are in legal limbo after being formally charged with money-laundering in September, and may be assisting investigators. Another forfeiture, of $14.2 million, was finalized last year.

But the US government has avoided Morris' point, that any money going into the US would be to pay winnings of US citizens, who are legally playing at Internet gambling sites. After all, the confusing laws that do exist are clear about one thing: playing is not illegal, only processing payment transactions to online casinos.

So, in an attempt to protect US consumers from being ripped off by potentially dishonest Internet casinos, the US government has decided to prevent the online gambling sites from honoring their debt. The Department of Justice has given its citizens a self-fulfilling prophecy, that if one plays at Internet casinos, one may not get paid.