Bowyer was charged 1 August on three counts. He is accused of running an illegal bookmaking scheme, laundering money, and filing a false tax return. Bowyer, according to court documents, will plead guilty Friday before Judge John W. Holcomb at the Ronald Reagan Federal Building and United States Courthouse in Santa Ana, Calif.
Bowyer’s business was based out of Orange and Los Angeles counties in California and Clark County in Las Vegas. Sports betting is illegal in California.
Bowyer faces a maximum sentence of 18 years in prison and three years of probation. He could be fined $750,000 or two times the “gross gain or gross loss resulting from the offenses”–whichever is higher.
Mizuhara, two pro ballplayers linked to Bowyer
According to the court documents, it is unclear when Bowyer started his alleged business, but it ran through 5 October 2023. It was around that time that federal authorities opened their investigation.
The court documents link Bowyer to former Shohei Ohtani interpreter Ippei Mizuhara, who in June pled guilty to stealing $17m from the baseball player to gamble. Mizuhara is not directly named in the documents, but is referred to as “I.M.”
In addition, the documents also point to two other professional baseball players. “Individual B was a professional baseball player for a Southern California baseball club. Individual C was a former minor league baseball player.” The two players were “close friends,” according to the documents.
Though neither was named, it seems likely that the players in question are former Angels infielder David Fletcher and ex-minor leaguer Cody Shultz. Major League Baseball opened an investigation into Fletcher, who is now in the Atlanta Braves farm system, in May. Schultz is out of baseball. Neither player has been charged, and the pair went to high school together. Schultz, according to previous reports, was also allegedly an illegal bookmaker working with Bowyer.
Money laundering in Nevada and California
Bowyer allegedly laundered money through multiple casinos in Southern California and Las Vegas. It seems likely that one of those casinos was the MGM Grand or Resorts World. Former casino executive Scott Sibella, who was president of both properties at different times, was sentenced in May on anti-money laundering charges. The charges stemmed from his failure to report suspicious transactions when he was president of MGM. Wayne Nix, another key figure in the Southern California illegal betting ring, allegedly laundered money at MGM.
Sibella was let go from Resorts World, where he was president, last year.
ESPN previously linked the Pechanga Casino Resort in Temecula, Calif. to Bowyer’s business.
Payments made ‘in cash in envelopes or bags’
Bowyer, according to the court documents, gambled at “Casino A” in the sportsbook and “private gambling salons.” The documents indicate that staff at Casino A in Las Vegas was aware that he was an illegal bookmaker.
“A staff would stop by at a table game while defendant took calls and discussed the Bowyer Gambling Business,” court documents read. “At other times, defendant would collect payments of proceeds of the Bowyer Gambling Business while gambling at Casino A, including payments in casino chips or in cash in envelopes or bags.”
Bowyer allegedly also “recruited casino hosts to work for him. At least two hosts at Casino A allegedly funneled “at least four new potential bettors” to Bowyer.
With regard to how Bowyer ran his business, the court documents reveal that he “employed agents and sub-agents” who were paid a commission of bets. These agents allegedly had their own cottage businesses, recruiting and maintaining bettors, collecting payments, and distributing winnings. The documents say that Bowyer worked with at least five other illegal bookmakers.
Black-market betting platforms employed
Bowyer sometimes paid commissions with “casino chips from Casino A,” according to the papers. Other times, the documents read, losing bettors directly paid winning bettors.
The documents detail bank transfers of $9,339,000 to Casino A and “at least” $9m to “at least one other casino in the Southern California area.” The transfers allegedly paid off “markers or credit lines” for Bowyer and/or his business partners.
Collectively, the bookmakers used Costa-Rican betting websites and a third-party call center to create accounts. “After the account was established, defendant and/or his agents advised the customer of the limits on his or her wagering activity, and provided the customer with access credentials,” documents said.
Bowyer misreported taxes
The idea that Bowyer placed bets offshore and then washed money through regulated casinos is likely of particular concern for the gambling industry and regulators. Legal operators consistently argue that regulated markets help to stamp out the black market. But in this case, it appears that several highly regulated casinos in the West laundered black-market funds, perhaps knowingly.
Besides the illegal gambling, Bowyer also violated IRS laws. It is that offense that could prove most costly in terms of dollars. According to the court documents, Bowyer reported $607,897 in total income for the 2022 tax year. His unreported income was $4,030,938. He will owe $1,613,280 in unpaid taxes, but will also be responsible for interest and penalties. Bowyer will also have to pay the prosecution’s costs.
Original article: https://igamingbusiness.com/casino/bowyer-700-illegal-betting-customers/
