Just read this from the Vancouver Sun
David Baines, Vancouver Sun
Published: Wednesday, August 27, 2008
The Bodog online gambling empire continues to crumble. On Thursday, I
received an e-mail from a reader who said Fiver Media (formerly Riptown
Media), which provides marketing and website support for Bodog from
offices in Vancouver and Toronto, had just laid off more than 200
people.
Gambling911.com, a Florida-based website that focuses on the online
gambling industry, similarly reported that Bodog, "under intense
scrutiny by the U.S. Government, has laid off hundreds of its employees
this week, leading to speculation that the online gambling firm will be
leaving the U.S. market."
If Bodog abandons the United States, it may as well fold its tent. It
isn't licensed to do business in Europe, and it doesn't do business in
Canada -- most likely because the last online gambling firm to operate
in Canada, Vancouver's Starnet International Communications Inc., was
shut down by the RCMP.
That leaves only the United States market, which is evaporating
quickly. U.S. authorities have been exerting heavy pressure on all
online gambling firms that take bets from U.S. citizens, including
Bodog.
Earlier this month, Forbes magazine reported that, since January, the
U.S. government has seized $24 million from U.S. bank accounts linked
to Bodog. This has caused the firm serious problems. Gambling911.com
reported that Bodog has been slow paying customers and vendors, and was
considering whether to withdraw its endorsement of the Bodog gambling
site.
Bodog was founded by former Vancouver resident Calvin Ayre. In June,
after U.S. authorities had seized millions from Bodog accounts, Ayre
announced he had sold the business to the Morris Mohawk Gaming Group,
which runs hundreds of gaming websites from the Kahnawake reserve near
Montreal, and was retiring.
His retirement, however, really amounts to an exile. He dares not set
foot in the United States, lest he be arrested, or even Canada, where
RCMP would most certainly arrest him at the behest of U.S. authorities
if he was indicted.
Bodog's support operations in B.C. consist of Fiver Media, which
operates from an office in downtown Vancouver, and Triple Crown
Customer Service, which provides customer account service from an
office in Burnaby. Triple Crown's status is unclear: Its website is
currently reported to be "under construction."
It's also difficult to determine what's happening at Fiver Media. On
Tuesday, I dropped into its office at 333 Seymour St., but nobody would
talk to me.
Fiver Media is run by Jim Phillips, a Vancouver chartered accountant
and former senior partner with the Vancouver accounting firm Morgan
& Company. Although he was in his office when I dropped by, he did
not show his face.
Phillips prefers to work in the background, Wizard of Oz style. But
make no mistake: He has played an instrumental role in the development
of Bodog's online gambling activities which, as noted, are viewed as
illegal in the United States. I would not be surprised if the U.S.
Justice Department doesn't have him, as well as Ayre, in its crosshairs.