Gambling Operator from California to Shell Out $14 Million in Penalties Due to Admitted Tax Fraud
Title: Santa Monica Resident Sentenced for Illicit Betting, Tax Evasion, and Money Laundering
Last Updated: April 30, 2025, 09:44h
Author: Todd Shriber @etfgodfather
Tagline: Financial | Gaming Business | Mergers and Acquisitions
California's notorious bookmaker, Christopher J. King, admitted his guilt on Tuesday for money laundering, operating an illicit wagering business, and tax evasion. The U.S. District Court alleges that he dishonestly made millions from an underground betting empire and evaded the IRS.
Hailing from Santa Monica, King masterfully orchestrated his illicit sportsbook in Los Angeles, adopting tech-savvy strategies such as utilizing a website in Costa Ricaβa popular tactic among local bookies in the know. Unsurprisingly, he flouted both federal and state laws, with the DOJ condemning his willful exploitation of the IRS.
The DOJ reported that King camouflaged $13.6 million of his earnings from the IRS; his 2022 tax return showed a meager $143,258 of taxable income. In reality, he raked in over $5 million that year[1]. According to the DOJ, King's maneuvers caused a total loss of more than $3.8 million to the IRS[1].
King's methods for laundering his ill-gained wealth included investment in tangible assets such as gold, real estate, and stocks. As part of the plea agreement, King has pledged a forfeiture of $10 million upon sentencing, which occurs on September 9. This fine is in addition to the over $3.8 million he owes to the IRS, amounting to a debt of nearly $14 million[2][3]. Penalties beyond this amount are expected to be confirmed during sentencing.
King may face severe jail time, with penalties including up to five years for each count of tax evasion and gambling offenses, up to ten years for money laundering, a period of supervised release, and further financial sanctions[2][3]. In the event that the state decides to pursue additional charges, King could potentially face up to three years in prison[3].
As California prohibits sports betting, King's black-market bookie operation found a significant consumer base[3]. Despite the 2022 ballot initiative backed by the commercial gaming industry failing, the Golden State's casino goliaths seem unenthused about revisiting the issue. The earliest the sports betting debate might resurface is next year, but the tribes are taking a wait-and-see approach[3].
Notable Enrichment:
- Christopher J. King's forthcoming sentencing is scheduled for September 9, 2025. He could potentially face up to five years per count for tax evasion, gambling, and accepting unlawful financial instruments. King may also face a potential 10-year term for money laundering[1][2].
- King is ordered to forfeit nearly $14 million, which includes a $10 million personal payment due on sentencing[2][3]. Additional penalties are noch yet finalized.
References:
[1] Justice Department Press Release[2] U.S. Department of Justice Court Filing[3] The Sacramento Bee
- Christopher J. King, a resident of Santa Monica, was sentenced for illegally operating a sports betting business, tax evasion, and money laundering.
- King, the infamous bookmaker from California, admitted to making millions from an underground betting empire and evading IRS taxes.
- In response to King's actions, the DOJ reported that he hid $13.6 million in earnings from the IRS, and during his 2022 tax return, he declared only $143,258 as taxable income.
- As part of the plea agreement, King agreed to forfeit $10 million upon sentencing, adding to the over $3.8 million he owes to the IRS, totaling nearly $14 million in debt.
- King faces potential jail time, with penalties including up to five years for each count of tax evasion and gambling offenses, up to ten years for money laundering, supervised release, and further financial sanctions.
- Despite California prohibiting sports betting, King's illicit bookie operation found a significant consumer base, and the sports betting debate might resurface next year, with the tribes maintaining a wait-and-see approach.