Gamblers across the U.S. are being greeted this week with an extra envelope in their mailboxes. But once they open them, many are shocked and disgruntled at what they find.
As we reported two weeks ago, the liquidation of BETonSPORTS was all but complete. Among the only things left to do for the liquidators, FRP Advisory, was to send out checks to former players. At the time, FRP Advisory stated that checks would be going out at the end of June. Today, many players did receive their checks as part of the “BETonSPORTS PLC settlement fund”.
However, several players we spoke with were shocked when they opened their envelopes and saw the meager amounts of their checks. “I was happy and excited to get the envelope,” said one payee. Then when I saw the amount of the check, all that went away.”
We had reported several times since 2011 that the amount for each player would be quite low. Apparently, FRP Advisory was not able to recover as much as they thought and everyone hoped. Even after speaking with BOS, then Vantis and finally FRP Advisory, we felt that players would get at least 10% back. But the final figure paid out was literally pennies-on-the-dollar – 4.62 cents to be exact.
Everyone wants to know where all of the money went. Well the fact is that once the dust settled following the arrests, there was almost nothing there for the liquidators to distribute. FRP Advisory did chase down some of the funds, but also was unable to recover several million that could have been used to up the payout percentage.
FRP Advisory did post their final report as promised on June 30. The report is not only a complete accounting of the money, but also details the efforts that were used over nearly four years in the recovery process. The full report is available here.
We did get a note today from FRP Advisory, who has been very responsive throughout this ordeal. The email stated the “first and final” distribution had been made. We expect that all players will be getting their settlement checks by the end of this week, putting an end to this dark chapter in the history of offshore wagering. A chapter that really started the latest war being waged by the U.S. on Internet gambling houses.