A Gambler or Not - Allen Stanford of Antigua

September 10, 2009 | News Category: Gaming Law

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For those online gambling operators who have chosen to do business in Antigua and Barbuda, they have been assured of offering their online casino players a licensed and regulated site to play on. Recently, the Allen Stanford financial scandal rocked Antigua, and many were worried that it would have an adverse affect on the online gambling operations that are licensed on the small Caribbean island.

Luckily for the online casino businesses based in Antigua, Allen Stanford, who claims that he is a Southern Baptist, refused to allow any Internet gambling businesses bank with his bank, since he claimed that it went against his convictions. The billionaires bank, Stanford Financial, was closed down when United States authorities uncovered a fraudulent investment scheme to the tune of about eight billion dollars.

Stanford Financial was forced to close their doors in February 2009, when the Securities and Exchange Commission had charged the millionaire, Allen Stanford, with "massive ongoing fraud." Antigua suspended and carried out a number of investigations on other key figures who could have been involved in the scandal.

Although many were worried about the possible adverse affects on the small and well-known gambling jurisdiction, it seems that the Internet gambling operators have managed to get out of this unscathed. If the scandal had any effect at all on the gambling operators and the gaming commission, it is that they will be more careful in the future. A closer look has been taken at the Financial Services Regulatory Commission in Antigua, since they oversee the financial matters for the online gambling operators. This will give others more confidence in the gambling jurisdiction.

Allen Stanford, however, is not only a dishonest businessman, he has also allegedly run up gambling debts. The self-proclaimed Baptist, who claimed to be against gambling, has apparently signed 14 separate gambling markers, which are casino credits, at the Bellagio resort. The gambling markers were signed for between the 15th of January and the 20th of January, 2009.

The gambling markers were not paid for and the Bellagio resort is now trying to recover the debt. The resort has sued Allen Stanford for the money owed to them by the billionaire. The total amount outstanding comes to more than $250,000. Bellagio is trying to recover the outstanding debt at an interest rate of 18% per year.

No matter which way you look at it, Allen Stanford was taking a very big gamble when he decided to be involved in fraudulent activities via his bank.