Sports book director for Cantor Gaming arrested, faces eight charges
By Howard Stutz
AND Chris Sieroty
LAS VEGAS ***************
Posted: Oct. 24, 2012 | 1:44 p.m.
Updated: Oct. 24, 2012 | 7:22 p.m.
Cantor Gaming sports book director Mike Colbert was arrested Wednesday in Las Vegas by state gaming agents in conjunction with a warrant filed by the District Attorney's office in Queens County, N.Y.
Gaming and legal sources confirmed the charges involve PinnacleSports.com, one of the largest off-shore sports wagering websites. Sources said agents for the website were arrested in several cities Wednesday. Colbert, 32, was booked into the Clark County Detention Center. He faces eight counts of conspiracy, money laundering and enterprise corruption, and is scheduled to appear Monday in Clark County District Court.
Gaming Control Board Chief of Enforcement Jerry Markling said Colbert was arrested at 6 a.m. at his home. He was one of eight people arrested in Las Vegas on New York charges. Others arrested were Las Vegas residents Kelly R. Barsel, 42, Jerry M. Branca, 67, Steven S. Diano, 48, Brandt A. England, 49, and Joseph D. Paulk, 35; and Henderson resident Paul Sexton, 29.
Colbert is believed to be the only one with ties to Nevada's gaming industry.
Control board agents will continue to investigate the matter to see if there were any regulatory violations, but Markling declined further comment on the matter, referring additional questions to New York prosecutors. A news conference is scheduled in Queens Thursday morning.
"It's a New York case. We are working with them," Markling said.
According to its website, PinnacleSports.com was established in 1998 and is licensed by both the government of Curacao and the Alderney Gambling Control Commission.
Gaming and legal sources said the matter does not involve Cantor Gaming and is unrelated to its business in Las Vegas, which includes leased space in seven Las Vegas-area casinos - M Resort, Cosmopolitan of Las Vegas, The Venetian, Palazzo, Tropicana, Hard Rock and Palms - where it operates race and sports books.
Colbert oversees the company's race and sports book business, and is chief oddsmaker.
Cantor Gaming officials declined comment on the arrest. The company is cooperating with Nevada gaming authorities and met with officials Wednesday at the M Resort, where Colbert is based. M Resort opened in March 2009 as Cantor's first Las Vegas sports book, and often took big wagers. M Resort officials did not respond to calls seeking comment Wednesday.
According to various sports wagering publications Colbert is a 10-year veteran of Nevada's race and sports book industry. He is considered one of the industry's most respected personalities and routinely is quoted on sports wagering issues by national publications and on sports talk radio programs, including The Las Vegas Sportsline
In an interview last week with SportingNews.com Colbert said the National Football League and other groups opposed to New Jersey's efforts to legalize sports wagering lack strong arguments and Cantor Gaming would explore opportunities there.
"The integrity argument, to me, is a complete facade," Colbert told SportingNews. "It's a smokescreen that they're putting up there, because it sounds good to maybe the average guy who doesn't understand the business. But if you're in the business and know what's going on, you know that if there is ever anything close to something shady, that we will be the ones that are able to point it out. That argument is so bad, and they continue to say it. It's kind of silly."
Colbert was described in a 2010 interview with Wired Magazine as someone who "has been around gambling all of his adult life."
By Howard Stutz
AND Chris Sieroty
LAS VEGAS ***************
Posted: Oct. 24, 2012 | 1:44 p.m.
Updated: Oct. 24, 2012 | 7:22 p.m.
Cantor Gaming sports book director Mike Colbert was arrested Wednesday in Las Vegas by state gaming agents in conjunction with a warrant filed by the District Attorney's office in Queens County, N.Y.
Gaming and legal sources confirmed the charges involve PinnacleSports.com, one of the largest off-shore sports wagering websites. Sources said agents for the website were arrested in several cities Wednesday. Colbert, 32, was booked into the Clark County Detention Center. He faces eight counts of conspiracy, money laundering and enterprise corruption, and is scheduled to appear Monday in Clark County District Court.
Gaming Control Board Chief of Enforcement Jerry Markling said Colbert was arrested at 6 a.m. at his home. He was one of eight people arrested in Las Vegas on New York charges. Others arrested were Las Vegas residents Kelly R. Barsel, 42, Jerry M. Branca, 67, Steven S. Diano, 48, Brandt A. England, 49, and Joseph D. Paulk, 35; and Henderson resident Paul Sexton, 29.
Colbert is believed to be the only one with ties to Nevada's gaming industry.
Control board agents will continue to investigate the matter to see if there were any regulatory violations, but Markling declined further comment on the matter, referring additional questions to New York prosecutors. A news conference is scheduled in Queens Thursday morning.
"It's a New York case. We are working with them," Markling said.
According to its website, PinnacleSports.com was established in 1998 and is licensed by both the government of Curacao and the Alderney Gambling Control Commission.
Gaming and legal sources said the matter does not involve Cantor Gaming and is unrelated to its business in Las Vegas, which includes leased space in seven Las Vegas-area casinos - M Resort, Cosmopolitan of Las Vegas, The Venetian, Palazzo, Tropicana, Hard Rock and Palms - where it operates race and sports books.
Colbert oversees the company's race and sports book business, and is chief oddsmaker.
Cantor Gaming officials declined comment on the arrest. The company is cooperating with Nevada gaming authorities and met with officials Wednesday at the M Resort, where Colbert is based. M Resort opened in March 2009 as Cantor's first Las Vegas sports book, and often took big wagers. M Resort officials did not respond to calls seeking comment Wednesday.
According to various sports wagering publications Colbert is a 10-year veteran of Nevada's race and sports book industry. He is considered one of the industry's most respected personalities and routinely is quoted on sports wagering issues by national publications and on sports talk radio programs, including The Las Vegas Sportsline
In an interview last week with SportingNews.com Colbert said the National Football League and other groups opposed to New Jersey's efforts to legalize sports wagering lack strong arguments and Cantor Gaming would explore opportunities there.
"The integrity argument, to me, is a complete facade," Colbert told SportingNews. "It's a smokescreen that they're putting up there, because it sounds good to maybe the average guy who doesn't understand the business. But if you're in the business and know what's going on, you know that if there is ever anything close to something shady, that we will be the ones that are able to point it out. That argument is so bad, and they continue to say it. It's kind of silly."
Colbert was described in a 2010 interview with Wired Magazine as someone who "has been around gambling all of his adult life."
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Doesn't appear Cantor itself is going to have any problems except to hire someone to take his place. He and the other agents for Pinnacle that they rounded up in Vegas and Henderson are going to have some serious problems as individuals but that's about it.
I don't think anything is going to hit the fan, it will be interesting to see what evidence they have to make these charges. Someone got pinched and squealed that's probably a safe wager.
I can't see him laying off action from Cantor to Pinnacle, that would be really hard to do with all the regs in place and accountability for the action coming in to be squared away properly on the books.
A train wreck is in progress.
I don't think anything is going to hit the fan, it will be interesting to see what evidence they have to make these charges. Someone got pinched and squealed that's probably a safe wager.
I can't see him laying off action from Cantor to Pinnacle, that would be really hard to do with all the regs in place and accountability for the action coming in to be squared away properly on the books.
A train wreck is in progress.
Four online sports books were also named in the indictment: Pinnacle Sports.com, Jazz Sports, Wager4You and Play Here.
Pinnacle is the most notable of those and is known for catering to big professional bettors. Stanley Tomchin and George Molsbarger of California, and Brandt England of Las Vegas were named in the indictment as owners of Pinnacle Sports.
“The defendants are accused of operating an incredibly lucrative illegal gambling operation – taking in more than $50 million in a year and a half,” Queens County District Attorney Richard A. Brown told reporters at a Thursday morning news conference.
Meanwhile, big Vegas professional sports bettors, who went to bed nervous, woke up Thursday morning to find little had changed with their accounts.
“It’s business as usual; same accounts are open and same agents are still working,” one professional told The Linemakers.
Pinnacle is the most notable of those and is known for catering to big professional bettors. Stanley Tomchin and George Molsbarger of California, and Brandt England of Las Vegas were named in the indictment as owners of Pinnacle Sports.
“The defendants are accused of operating an incredibly lucrative illegal gambling operation – taking in more than $50 million in a year and a half,” Queens County District Attorney Richard A. Brown told reporters at a Thursday morning news conference.
Meanwhile, big Vegas professional sports bettors, who went to bed nervous, woke up Thursday morning to find little had changed with their accounts.
“It’s business as usual; same accounts are open and same agents are still working,” one professional told The Linemakers.
