Bodog gambling site shut down, Canadian owner indicted
U.S. officials issue an arrest warrant for Calvin Ayre, who founded the online brand in 1994
The Associated Press
Posted: Feb 29, 2012 1:16 AM ET
Last Updated: Feb 29, 2012 10:01 PM ET
The gambling website Bodog has been shut down and four Canadians indicted, including founder Calvin Ayre, for illegal gambling that generated more than $100 million in winnings, U.S. federal prosecutors say.
The website's domain name was seized Monday and the indictments, which were returned Feb. 22, were unveiled Tuesday in Baltimore, prosecutors said.
The indictments follow federal prosecutions last year of three of the biggest websites involved in online poker. More than 75 company bank accounts in 14 countries have been frozen, and authorities are seeking $3 billion in fines and restitution, in that investigation.
Bodog gambling founder Calvin Ayre poses for a photograph after an interview at a Toronto hotel in July 2007. Ayre has been indicted in the U.S. for illegal gambling. (Nathan Denette/Canadian Press)In addition to the 50-year-old Ayre, who was born in Lloydminster, Sask., prosecutors say the indictment names website operators James Philip, David Ferguson and Derrick Maloney.
Gamblers in Maryland and elsewhere were sent at least $100 million by wire and cheques from 2005 to 2012, the U.S. Attorney's office said, adding Bodog conducted a $42-million advertising campaign between 2005 and 2008 to attract gamblers to the Bodog.com website.
The operation allegedly moved funds from Bodog's accounts located in Switzerland, England, Malta, Canada and elsewhere to pay winnings to gamblers. The four Canadians each face up to five years in prison for conducting an illegal gambling business and 20 years for money laundering. Bodog.com faces a fine of up to $500,000 for gambling and money laundering. Initial appearances for the individuals have not been scheduled.
Marcia Murphy, a spokeswoman for the U.S. Attorney's office in Baltimore, said the four are not in custody and no attorneys had indicated by Tuesday afternoon they are representing the four or Bodog. Spokeswoman Vickie LeDuc said later Tuesday that arrest warrants had been issued for the four.
Ayre posted a statement on his website Tuesday saying that his company did not take U.S. bets.
'Bodog UK, Bodog Europe and Bodog Asia have never taken bets from the US. The BodogBrand is currently consulting with its legal advisers with a view to having the domain returned.'—Calvin Ayre, Bodog founder
"Bodog UK, Bodog Europe and Bodog Asia have never taken bets from the US," the statement said. "The BodogBrand is currently consulting with its legal advisers with a view to having the domain returned."
The statement also said the Bodog domain has not been in use since operations were switched from Bodog.com to Bodog.eu by the Morris Mohawk Gaming Group and The BodogBrand.com revoked its licensing agreement with MMGG on Dec. 15.
In a statement on CalvinAyre.com, Ayre wrote, "I see this as abuse of the US criminal justice system for the commercial gain of large US corporations. It is clear that the online gaming industry is legal under international law and in the case of these documents it is also clear that the rule of law was not allowed to slow down a rush to try to win the war of public opinion."
An affidavit filed along with the warrant to seize the site said investigators created accounts with Maryland addresses and received checks in the mail for winnings. The affidavit also said investigators interviewed a former Bodog employee who named top officers and directors and said the company had hundreds of employees in Canada and Costa Rica handling day-to-day operations.
"Sports betting is illegal in Maryland, and federal law prohibits bookmakers from flouting that law simply because they are located outside the country," said U.S. Attorney Rod J. Rosenstein. "Many of the harms that underlie gambling prohibitions are exacerbated when the enterprises operate over the internet without regulation."
Prosecutors say the investigation was led by the U.S. Immigration and Customs Enforcement Homeland Security Investigations in Baltimore and also involved the Internal Revenue Service, Anne Arundel County Police and Maryland State Police. HIS agents seized the domain name on Monday.
Share Tools
Top News Headlines
- B.C. police shooting video sparks calls for new probe
- Amateur video of the shooting of a mentally ill Vancouver man five years ago has prompted calls for B.C.'s police complaint commissioner and Crown prosecutors to take another look at the case. more »
- 'Engine shutdown' forced Air Canada jet to land
- A Japan-bound Air Canada Boeing 777 jet had to make an emergency landing at Toronto's Pearson airport on Monday, after one of its engines failed. more »
- CP Rail union, Tories battle over collective bargaining
- The federal Conservatives defended their plan to force striking Canadian Pacific Railway employees back to work as a way to keep the economy on track, while the union representing 4,800 workers said their collective bargaining rights are under attack. more »
- Quebec resumes student talks as protests ebb
- A new round of negotiations between student leaders and Quebec's Liberal government over the province's tuition-fee crisis end at night, as hundreds of people take to the streets in protest. more »
Latest World News Headlines
- Annan calls Syrian massacre 'an appalling crime'
- UN mediator Kofi Annan arrived in Damascus today, saying he was 'shocked and horrified' by the massacre of 108 people, including 49 children, in the town of Houla. more »
- Vatican denies cardinal suspected in leaks scandal
- One of the Vatican's biggest scandals in decades appeared to be widening with reports that an Italian cardinal may be part of a power struggle involving leaked documents, corruption and intrigue — a suggestion the Vatican quickly denied. more »
- Obama calls treatment of Vietnam vets a 'national shame'
- U.S. President Barack Obama praised Vietnam veterans as war heroes who were often not given the welcome they deserved on their return home. more »
- Hesjedal knew Giro win was no sure thing

- Victoria cyclist Ryder Hesjedal says his Giro d'Italia victory was never a sure thing, despite being the favourite going into the final stage of the three-week race. more »
Dispatches »
- Foreign slaves serving the U.S. military machine May. 24, 2012 3:33 PM How does a hairdresser recruited for work in Dubai, wind up slaving for the U.S. military in a war zone in Iraq? There are tens of thousands serving in what's come to be known as America's "Invisible Army."
Connect Newsroom Blog
Series launches tonight May. 28, 2012 6:33 PM Tonight we're launching our week-long series #bullyPROOF and we're starting things off by heading back to class for a closer look at bullying in our schools.
- 'Engine shutdown' forced Air Canada jet to land
- Missing Winnipeg kids found in Mexico are back with mom
- Thunder Bay flooding causes state of emergency
- Canadian Everest climber's body recovered
- Vatican denies cardinal suspected in leaks scandal
- Evolution skeptics will soon be silenced by science: Richard Leakey
- Man, woman shot dead in Burnaby restaurant
- CP Rail union, Tories battle over collective bargaining
- Wacky weather mix across Canada

