Operators of the Firepay e-wallet brand have been slugged with a massive $19.2 million settlement fine by US prosecutors.
Canadian based Optimal Group Inc. have agreed to the substantial settlement with the United States District Attorney (Southern District of New York branch) rather than face prosecution. They own the Firepay brand, a well known e-wallet service that has been an active provider of payment processing services to the online gambling industry.
The settlement guarantees Optimal immunity from prosecution for transactions processed from 2004 to 2006 between online casinos/sportsbooks and US residents, estimated to be in the billions of dollars. Curiously, the UIGEA laws that render payment processing with regard to online betting services illegal only came into force in October of 2006. Nevertheless, Optimal have apparently agreed to the considerable settlement amount.
They also, under the terms of the settlement, acknowledged that their I-gaming clients were violating US laws in accepting bets from Americans. Authorities seem to be stepping up their attempts to actively enforce their anti-gambling stance and target individual operators.
Earlier this week it was reported that well known US facing operator Golden Casino was under the blow torch amidst bank account seizures and ongoing investigations into operations.
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