January 3, 2013

WRITE GAMBLING SOFTWARE, GO TO PRISON?

In a criminal case sure to make programmers nervous, a software maker who licenses a program used by online casinos and bookmakers overseas is being charged with promoting gambling in New York because authorities say his software was used by others for illegal betting in that state.

New York authorities say that about $2.3 million that Robert Stuart and his company, Extension Software, received in cash and money orders for licensing his software constitutes direct proceeds of illegal, U.S.-based bookmaking operations.

“These defendants abetted large-scale illegal gambling in the U.S. and abroad,” said District Attorney Cyrus R. Vance, Jr. in a press release in October when Stuart was charged. “In doing so, they gave bettors an easy way to place illegal wagers, and created an appetite for further unlawful activity.”

But Stuart, who has been charged along with his wife and brother-in-law with one felony count for promoting gambling in New York through their software firm, says that his company sells the software only to entities outside the U.S. and that he’s not aware of anyone using it in the U.S. or using it to take illegal bets in the U.S. He also says the software doesn’t place bets, it simply provides online gambling sites with the infrastructure to select and display which sporting events they want to offer for betting and also stores the bets.

Pathetic.