His illicit activities highlight the shadowy underworld of unregulated sports betting in the United States, revealing the lengths to which some will go to capitalize on the burgeoning demand for sports gambling in California. This article delves into the details of LeForbes’s illegal enterprise and its impact on the legal betting landscape.
The Scope of LeForbes’s Illegal Operations
LeForbes’s illegal sportsbook was no small operation. Beginning around January 2021, he established a network that accepted millions of dollars in illegal wagers from bettors across Los Angeles County, Orange County, and Clark County, Nevada. The business ran until December 2023, during which time LeForbes employed a range of tactics to sustain and grow his operations. Key to his success was the use of a call center and a website to manage accounts and track bets, allowing him to operate under the radar for nearly three years.
LeForbes employed agents who were tasked with recruiting new bettors to the platform. These agents were compensated based on a share of the gambling losses generated by the bettors they recruited, creating a network of intermediaries incentivized to expand the client base.
This approach not only broadened the reach of LeForbes’s operation but also diversified its revenue streams. Court documents revealed that LeForbes and his agents used various payment methods to avoid detection, including checks, wires, cryptocurrency, cash, and popular payment processors like PayPal. This diversified approach to handling finances was a calculated move to obscure the origins and flow of money within the illegal operation.
One of the more audacious aspects of LeForbes’s operation was his recruitment of casino hosts to act as agents for his business. By bringing in two hosts from an unidentified casino, referred to as “Casino A” in court filings, LeForbes leveraged their existing networks and expertise to attract high rollers to his illegal sportsbook.
“Casino A” played a critical role in his operation, with court documents detailing that LeForbes executed at least 17 personal checks totaling $9.1 million at the casino between October 2021 and December 2023. He also presented $2.8 million in cash during the same period, underscoring the scale and audacity of his illegal activities.
Resorts World Las Vegas and the Fallout
The investigation into LeForbes’s activities has cast a spotlight on Resorts World Las Vegas, which is suspected to be “Casino A” in court documents. The Nevada Gaming Control Board has filed a disciplinary complaint against Resorts World for allegedly allowing illegal bookmakers to launder money through its facilities.
According to a report from the Nevada Current, LeForbes lost $12.3 million at Resorts World over several trips, further implicating the casino in the broader illegal betting network.
Resorts World has acknowledged the complaint and stated its commitment to cooperate fully with authorities. A spokesperson for the casino emphasized their dedication to operating with “the utmost integrity and in compliance with applicable laws and industry guidelines.” However, the involvement of a major Las Vegas casino in such a scandal raises significant concerns about regulatory oversight and the enforcement of anti-money laundering laws in the gambling industry.
LeForbes’s strategic use of cryptocurrency also helped him evade detection. As outlined in court documents, he advised others to send money directly to wallets rather than through exchanges, saying, “I’d just send like [$100,000] at a time to different addresses.” This method allowed him to manage large sums of money discreetly, making it harder for authorities to trace transactions.
His admission that he moved millions in cryptocurrency back and forth weekly further illustrates the scale of his operation and the sophistication of his methods to avoid scrutiny.
Legal Repercussions and Broader Implications
The legal consequences for LeForbes are significant. He faces up to 15 years in prison, three years of supervised release, and a fine of up to $500,000 or twice the gross gain or loss from his illegal business. These penalties reflect the severity of his crimes and the broader efforts by federal authorities to crack down on illegal sports betting operations across the United States.
The fallout from this case extends beyond LeForbes. The investigation has implicated several individuals, including Matthew Bowyer, who has already pled guilty to charges related to illegal sports betting. The case also drew connections to Wayne Nix, a former minor league baseball player whose testimony helped indict Scott Sibella, a former MGM Grand executive, on charges related to illegal sports betting.
The crackdown on LeForbes and his associates underscores a broader effort by law enforcement to regulate the rapidly growing sports betting market and prevent illegal operations from undermining legal, regulated sportsbooks. As the U.S. continues to expand legalized sports betting, cases like this highlight the ongoing challenges regulators face in maintaining the integrity of the industry while curbing illicit activities.
