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It did not, but in March , Schillinger, Cohen, and Ware were nevertheless charged in federal court with violating the Wire Act. Introduced in , the Interstate Wire Act was intended to cut off the lifeline of bookies, making it illegal to use telephone wires for booking bets. I recently spoke with Haden Ware, and he described the mood of cautious optimism the three men felt when Jay Cohen returned to the U.
It would be eight years. On July 24, , Cohen was found guilty. He served eighteen months at Nellis Federal Prison Camp, north of Las Vegas, and was sentenced to a lengthy parole that kept him away from Antigua. WSEX continued its operations, but for Schillinger and Ware, the writing was on the wall: returning home would mean prosecution and imprisonment. They were exiles. When Morley Safer disembarked in Antigua to interview Schillinger and Ware for 60 Minutes , he was turned back by customs.
The story, which aired in January , showed the men happily golfing. The reality of exile was slightly different. Schillinger had brought his wife and children with him when he first moved to Antigua. But by , the family was back in California. Then his wife filed for divorce. But he vowed to keep going.
While serving his sentence, Jay Cohen received fan mail. One such letter contained two ideas. The first was for a betting service that would track pregnancy due dates. Ameritrade golf betting Cohen discounted that one. But the second idea was intriguing. What if Antigua sued the U. After all, the letter writer argued, the U. By outlawing WSEX but still allowing offtrack betting, the government was giving preferential treatment to U.
That violated World Trade Organization rules. The U. Instead, targeting the Antiguan gaming industry was clearly an attempt to protect economic interests. But above the camera shop in Saint. Meanwhile other, fiercely competitive sports books had emerged online, and the comparatively low-tech WSEX struggled to keep pace. On October 13, , President George W.
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Cancel Continue to Website. Schillinger had moved to the Caribbean with his wife and two children, but his family moved back to the U. Eventually, his wife filed for divorce. Meanwhile, Cohen mounted an appeal. His lawyers made the case that the Wire Act, conceived decades before the internet, was never meant to apply to online transactions.
Cohen, though, lost his appeal. Supreme Court declined to hear his case in June , and he began his month stint that October in the minimum-security Nellis Federal Prison Camp, which, ironically, sits amid Nevada scrub 25 miles north of Las Vegas. After the 60 Minutes piece aired and re-aired, Cohen received fan mail from a viewer.
But the letter writer also had another suggestion: Why not convince the authorities in Antigua to sue the U. Golf bets for fivesomes The argument was fairly simple: The U. By permitting horse-racing operations to take bets remotely and not offshore sportsbooks, the U. He was no trade lawyer, but he convinced the Antiguan government to let him represent the country on the matter.
Are we nuts. But the U. First, it appealed the decision, and a WTO arbitrator let the U. Then came the real hammer blow. In the fall of , George W. Same for most credit card companies. Cohen says WSEX had to seek out less reputable payment processors. Terms were often larded with fees. Cohen recalls that a friend suggested they take bets via a newfangled virtual currency called Bitcoin.
The customer loyalty that WSEX had cultivated was fraying. Instead, they found his lifeless body on the floor next to a gun and a note stating that he could not live with the shame and guilt of being unable to pay his customers or cover their funds. After decades of looking at gambling as an existential threat, wagering is as much a part of the NFL tableau as tailgating.
Gambling advertisements are everywhere and team partnerships are common. To Cohen, it all felt so screamingly unfair. And he directed most of his anger at the U. So much so, he not only moved overseas after his probation but renounced his U. He returned first to Antigua and then landed in Montenegro, where he oversaw a syndicate of online poker players. But a colleague introduced Cohen to his future wife.
He pinballed around the world—Argentina, Germany, Ireland, Montenegro, Brazil—working for various legal gambling businesses and sportsbooks. Finally, in , he returned to the U. He was not sentenced to prison and, after serving probation, moved to rural Connecticut, where he lives with his partner—whom he first met when she worked answering phones for WSEX in Antigua.
Like Cohen, he has applied for hundreds of jobs. Ameritrade golf betting We all have to reinvent ourselves. Gyneth McAllister, the former overseer of gambling for Antigua, is now based in Washington and consults for Trinidad and Tobago. White, through her firm, declined comment; Debevoise itself did not respond to questions.
After leaving the U. Now in his 80s, he did not respond to a request for comment. Meanwhile, in the ultimate pivot, the NFL went from branding gambling as an existential threat to embracing it. Which the court did that year, opening the door for states—38 and counting, plus D. Now, of course, wagering is as much a part of the NFL tableau as tailgating.
Gambling advertisements are everywhere; team partnerships are common. The same league that not long ago turned down a Super Bowl commercial from Las Vegas tourism is now holding the Super Bowl there. And the same league whose high-powered law firm helped prepare a federal case against online sportsbooks earned millions last year from online gambling partnerships—not least because of the appeal of the in-game betting introduced on WSEX.
His Sundays were once devoted to taking bets and setting lines as the company he cofounded took in billions in action. The normalization and stigmatization of online sports gambling in the U. He resists the urge to wonder why, when sports gambling is still illegal in, say, Utah, operators can transmit live betting data directly from Jazz home games without violating the same Wire Act cited in his case.
Or why the U. Or what his life might look like had the NFL not flexed its muscle. Please do one or the other.