[jetset]

More detail emerging on this issue. Note the Las Vegas connection!

The following article is from The Vancouver Sun:

Gambling site Bodog hit with $48-million judgment in U.S. court

Wednesday, August 29, 2007

"Online gambling website Bodog.com was out of service Monday and remained inoperative Tuesday, apparently due to a $48.6-million default judgment obtained by a Las Vegas company against Bodog in a patent infringement case.

".....but according to Nevada court documents, 1st Technology LLC of Las Vegas obtained a $48.6-million default judgement on June 14 against Bodog Entertainment Group S.A., Bodog.net and Bodog.com.

The Las Vegas company obtained the judgment after the Bodog companies failed to answer allegations, filed in U.S. District Court in Nevada, that downloaded software used by Bodog customers to facilitate its gaming activities infringed upon 1st Technology's patents.

It is not clear why Bodog officials did not respond to the allegations. One possibility is they were scared away by the U.S. Department of Justice, which has declared war on Internet gambling.

Through a series of high profile arrests of online gambling executives, the Justice Department has made it clear that online gambling is illegal and anybody operating or facilitating such activities is subject to prosecution.

Since then, (Bodog CEO Calvin] Ayre has avoided stepping on American soil, but he continues to return to Vancouver, where Bodog runs a marketing-support business in Vancouver called Riptown Media and a call centre in Burnaby called Triple Crown Customer Service.

Meanwhile, 1st Technology has been steadily tightening the noose on Bodog, which was previously run out of Costa Rica but is now based in Antigua.

In an affidavit filed in conjunction with the court action, 1st Technology lawyer Kristopher Rath complained that, despite the default judgment, Bodog "continues to act with impunity in the United States."

"The Bodog entities infringing activities are responsible for over $65 billion in cumulative transactions to date, with approximately two-thirds of this revenue currently being derived from infringing United States activities," he said.

The lawyer noted that, according to a Forbes interview with Ayre, "Bodog handled $7.3 billion dollars of revenue which translates to over $4.8 billion in revenue in the United States with revenue growing 300 percent per year since 2004."

He also noted that, according to the Forbes interview, Ayre "has amassed a current wealth of $1 billion, which was derived in large part through infringement of 1st Technology LLC's patent.

"However, despite reaping the rewards of U.S. commerce, the Bodog entities evade United States law and courts, and Mr. Ayre gloats about his companies' ability to operate above American law."

The lawyer said 1st Technology "continues to suffer massive and irreparable harm because of the Bodog entities' wrongful conduct", and the "only way to stop this harm is to enjoin Bodog's United States activities."

In the early 1990s, Ayre got into trouble with the B.C. Securities Commission over his dealings with Bicer Medical Systems, listed on the former Vancouver Stock Exchange. In 1996, he admitted to serious offences in connection with that company and agreed to a 20-year ban from the B.C. securities market.