A man from Santa Monica has owned up to several federal crimes after he admitted he ran an unlawful sports betting business, dodged millions in taxes, and laundered dirty money.
Santa Monica Bookie Used Offshore Site, Evaded Taxes on $13.5M
Christopher Scott King, who managed a bookmaking operation from Los Angeles County, relied on an offshore website in Costa Rica to take bets on sports events. This activity broke both California state laws and federal gambling rules, according to federal prosecutors. The US Department of Justice announced the plea deal on April 29, which carries heavy money penalties and legal fallout.
Court papers show King did not report over $13.5 million in income to the IRS from 2019 to 2022. In 2022, he said he made just over $143,000 in taxable income, but he earned more than $5 million. His actions led to a tax loss of over $3.8 million.
Federal authorities explained how King tried to hide where his money came from. He moved the cash through buying gold and putting money into real estate projects, while also adding big sums to his personal trading accounts.
With $14M in Fines and Possible Long Prison Term, King’s Guilty Plea Sends Message to Illegal Bookies
King’s plea deal requires him to pay almost $14 million in total. This includes a $10 million forfeiture judgment and the rest to cover his unpaid taxes. His sentencing is set for September 9. He could face up to five years in jail for each count of tax evasion, illegal gambling, and receiving unlawful internet payments. The money laundering charge could lead to a maximum of 10 years behind bars. He might also get supervised release and have to pay more in restitution.
IRS Criminal Investigation and Homeland Security Investigations looked into this case. Lawyers from the Justice Department’s Tax Division are handling it. This shows the government keeps cracking down on underground betting operations and financial crimes.
Officials pointed out that King’s business got a boost from California’s sports betting ban, which gave black market operators a chance to thrive in the absence of legal options. Even though efforts to make sports betting legal failed in 2022, state lawmakers and tribal casino groups still cannot agree on whether or how to tackle this issue again. By convicting King, federal officials aim to show that even tech-smart bookies using offshore platforms cannot escape US law.