PokerStars Founder Isai Scheinberg Faces The Music After A Decade On The Run

Given how the world of online gambling has become decidedly mainstream over the last few years with even the US offering legal gambling in some states and most major European countries having robust regulated markets, it is easy to forget that not that long ago it was an underground industry.

One such holdover from the dark days of gambling operators flying in the face of authorities are the ongoing charges against PokerStars founder, Isai Scheinberg.

Payments Closing The Book

Scheinberg is the last man standing in a battle between the USA and illegal gambling sites going back as far as 2011. After more than 9 years on the Isle of Man, where PokerStars has its headquarters, Scheinberg travelled to Switzerland, a country that has an extradition agreement with the US.

While US lawmakers had begun the extradition process Scheinberg voluntarily surrendered to them. He was released on $1 million bail and had to surrender his passport to ensure he stayed in the country till his case can be heard.

Poker Where It All Begin

The online gambling industry was turned upside in 2006 when US lawmakers snuck in a last-minute amendment to the SAFE Ports act, called the Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA). This put online gambling in the same financial box as funding terrorism and allowed them to effectively shut down the processing of gambling deposits and withdrawals.

PokerStars however chose to keep offering gambling services to US players despite the best efforts of the DOJ and other US authorities which culminated in Scheinberg charged with violating the UIGEA with specific references to operating an illegal gambling site, conspiracy to commit bank fraud and of course money laundering in 2011.

Facts Not Rolling Over

While many of Scheinberg’s predecessors have put their black-market days behind them by pleading guilty to lesser charges or worked out plea deals the 79-year old businessman wants his day in court.

The majority of his charges have already been dropped with the only charge remaining being “running an illegal gambling business”. Scheinberg has plead not guilty to this charge and will fight it in court.

Given Scheinberg’s age and the advancements in online gambling as a legitimate business many experts are predicting that the federal prosecutor, Olga Zverovich, will come an agreement to end this quickly and not waste the courts time.