Alleged Illegal Gambling Operator Targets High-School Students, Cops Assert
Law enforcement in Ontario is exploring accusations of an illicit online gambling enterprise luring high school students and using intimidation tactics if there was no payment, as reported by Bradford Today.
The investigations center on a website identified as TopBets, which allegedly induced minors to register for casino games and sports wagering. Orillia's police officers confirmed that they've been notified of several incidents involving students threatened due to unpaid gambling debts, the first occurring in April.
Sergeant Matt Stoner from the Orillia Community Mobilization unit added that there was one teenager apprehended and charged with two counts of threatening to cause harm. While the police believe the incidents are circumscribed and centering around a specific high school, there could be additional undisclosed victims.
“We are aiming to connect with anyone who can contribute to the investigation, and if there are any other victims as we currently know of only a few cases tied to one school," said Stoner.
Potential Use of Price-Per-Head Model
Possibly, this gambling operation employed the price-per-head (or pay-per-head) model. This setup allows an unlicensed bookmaker to offer online gaming services to a niche, local demographic by partnering with an overseas pay-per-head software provider.
The provider collects a nominal fee from the bookmaker for every active member linked to his account, regardless of the size of wagers placed or net winnings/losses accumulated. The software aids the bookmaker in running his business. While all financial transactions are conducted offline, the software keeps a record of all bets. Aggregate payouts and collections are handled in person, typically by the bookmaker or his "operatives," who in this case appear to have been teenagers.
Expansion into Online Casinos
Initially established as a facilitator of illegal sports betting, pay-per-head providers have subsequently ventured into online casino platforms and race tracks. In recent instances, corrupt gambling and extortion rings dismantled by authorities were discovered to be using this model.
Ontario is the only Canadian province with a legalized, open online gaming sector. The remainder of Canadian provinces regulate internet gambling and sports betting services through provincially-run monopolies.
A study commissioned by the Alcohol and Gaming Commission of Ontario in April disclosed that 86.4% of online gambling participants utilized approved sites rather than black market operators.
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Source: www.casino.org
