FEDERAL LAWS APPLICABLE TO INTERNET GAMBLING
37. The Wire Act prohibits the use of wire communication facilities for interstate or foreign gambling purposes. In 18 U.S.C. § 1084 (a), it provides as follows:
(a) Whoever being engaged in the business of betting or wagering knowingly uses a wire communication facility for the transmission in interstate or foreign commerce of bets or wagers or information assisting in the placing of bets or wagers on any sporting event or contest, or for the transmission of a wire communication which entitles the recipient to receive money or credit as a result of bets or wagers, or for information assisting in the placing of bets or wagers, shall be fined under this title or imprisoned not more than two years, or both.
The term "wire communication facility" is defined by 18 U.S.C. § 1081:
The term "wire communication facility" means any and all instrumentalities, personnel, and services (among other things, the receipt, forwarding, or delivery of communications) used or useful in the transmission of writings, signs, pictures, and sounds of all kinds by aid of wire, cable, or other like connection between the points of origin and reception of such transmission.
38. Computer transmissions for purposes of engaging in illegal gambling on the Internet are made by means of telephone wires, cables "and other like connection(s) between the points of origin and reception." The connection between the credit card holder's individual computer, through which Internet user accesses the Internet, and the Internet Casino thus is enabled by wire communication facilities within the definition of 18 U.S.C. § 1081 and 18 U.S.C. § 1094 (a).
39. The actions of the Internet Casinos in accepting bets and participating in gambling over the Internet from within the United States violates 18 U.S.C. § 1084 (a).
40. Communications between the Internet Casinos and MasterCard are made on wire communication facilities within the meaning of 18 U.S.C. § 1081. 18 U.S.C. § 1084 (a) prohibits use of wire communication facilities in transmissions which entitle the recipient to receive money or credit as a result of bets or wagers. These actions also violate the Wire Act.
41. The Travel Act, 18 U.S.C. §1952, prohibits use of facilities of interstate or foreign commerce to promote illegal gambling. In pertinent part, it provides:
Whoever travels in interstate or foreign commerce or uses the mail or any facility in interstate or foreign commerce, with intent to-
1. distribute the proceeds of any unlawful activity; or
2. commit any crime of violence to further any unlawful activity; or
3. otherwise promote, manage, establish, carry on, or facilitate the promotion, management, establishment, or carrying on, of any unlawful activity,
and thereafter performs or attempts to perform-
1. an act described in paragraph (1) or (3) shall be fined under this title, imprisoned not more than 5 years, or both; or
2. an act described in paragraph (2) shall be fined under this title, imprisoned for not more than 20 years, or both, and if death results shall be imprisoned for any term of years or for life.
As used in this section (i) "unlawful activity" means (1) any business enterprise involving gambling . . . , (2) extortion, bribery, or arson in violation of the laws of the State in which committed or of the United States, or (3) any act which is indictable under subchapter 11 of chapter 53 of title 3 1, United States Code, or under section 1956 or 1957 of this title and (ii) the term "State" includes a State of the United States, the District of Columbia, and any commonwealth, territory, or possession of the United States. . . .
42. Data communications travel through telephone wire and other transmission systems and are used in interstate and foreign commerce,
43. The operations of the Internet Casinos fall within the scope of, and are proscribed by, the Travel Act.
44. Defendant's actions in accepting merchant accounts for Internet Casinos, in making its payment system available, and in collecting the gambling debt facilitate the illegal gambling operation, in violation of this statute.
45. The actions of the Interstate Casinos, and the actions of MasterCard International and its member banks, also fall within the scope of 18 U.S.C. 1955, Prohibition of Illegal Gambling Business.
46. Section 1955 provides:
(a) Whoever conducts, finances, manages, supervises, directs, or owns all or part of an illegal gambling business shall be fined under this title or imprisoned not more than five years, or both.
(b) As used in this section-
(1) "illegal gambling business" means a gambling business which-
(i) is a violation of the taw of a State or political subdivision in which it is conducted;
(ii) involves five or more persons who conduct, finance, manage, supervise, direct, or own all or part of such business; and
(iii) has been or remains in substantially continuous operation for a period in excess of thirty days or has a gross revenue of $2,000 in any single day.
47. When MasterCard International engaged in an association with Internet Casinos for the purpose of facilitating on-line Internet gambling, it engaged in an Illegal Gambling Business.
48. MasterCard International finances the gambling that occurs on-line by promoting the use of its MasterCard credit cards through gambling charges. This practice has occurred for more than a year with the Internet Casinos earning revenues in the amount of $49 billion.
49. MasterCard International has also violated 18 U.S.C. § 1957, Engaging in Monetary Transactions in Property Derived from Specified Unlawful Activity, and 18 U.S.C. §1960, Prohibition of Illegal Money Transmitting Business.
COUNT I
DECLARATORY JUDGMENT:
UNLAWFUL CONTRACT VOID AND/OR VOIDABLE UNDER FEDERAL LAW
50. Plaintiff realleges Paragraphs I through 49 of this complaint as if fully set forth herein and are incorporated by reference.
51. An actual controversy exists between the parties within the meaning of 28 U.S.C. § 2201. Defendants have alleged that Plaintiff is indebted to them in varying amounts. Plaintiff denies owing any such obligation because such obligations are unenforceable illegal gambling debts.
52. All of the gambling debts sought to be collected from United States residents resulting from illegal gambling are similarly unenforceable.
53. By reason of the foregoing, Defendants' claims for collection of Internet gambling debts from Plaintiff and any other members of the class are unlawful, void and/or voidable as a matter of law. Defendants have been unjustly enriched in collecting illegal and unenforceable gambling debts.
54. Plaintiff is entitled to a declaratory judgment declaring said contracts to be void and/or voidable, and to their outright cancellation, and to reimbursement of all payments made upon such debts and all interest and penalties collected by Defendants.
COUNT II
DECLARATORY JUDGMENT:
UNLAWFUL CONTRACT VOID AND/OR VOIDABLE UNDER
STATE STATUTORY AND COMMON LAW
55. Plaintiff realleges paragraphs 1 through 54 as if fully set forth herein and are incorporated by reference.
56. An actual controversy exists between the parties within the meaning of 28 U.S.C. § 2201. Defendants have alleged that Plaintiff is indebted to them. Plaintiff denies owing any such obligation because such obligations are unenforceable illegal gambling debts.
57. All gaming contracts are void under Wisconsin statute 895.055 and common law, and under the statutory and common law of many other states, as will be established by proof.
58. All illegal gambling debts sought to be collected from United States residents with laws substantially similar to Wisconsin statutory and common law are similarly unenforceable.
59. By reason of the foregoing, Defendants' claims for collection of Internet gambling debts from Plaintiff and any other members of the class are unlawful, void and/or voidable as a matter of law.
60. Plaintiff is entitled to a declaratory judgment declaring said contracts to be void and/or voidable, and to their outright cancellation, and to reimbursement of all payments made upon such debts and all interest and penalties collected by Defendants.
COUNT III
VIOLATION OF RACKETEER INFLUENCED
AND CORRUPT ORGANIZATIONS ACT, 18 U.S.C. § 1962(c)
ENTERPRISE LIABILITY
61. Plaintiff realleges paragraphs I through 60 as if fully set forth herein.
62. Plaintiff is, and at all relevant times hereto, "persons" within the meaning of 18 U.S.C. § 1961(3).
63. A pattern of racketeering activity occurred when Defendants engaged in an operation to facilitate illegal gambling activities through the Internet. MasterCard knowingly opens accounts with Internet Casinos to aid gambling over the Internet. With the use of credit transactions to cards, Internet users may engage in Internet gambling.
64. Defendant's scheme or artifice constitutes a "pattern of racketeering activity" within the meaning of 18 U.S.C. §1961(5) and 18 U.S.C. § 1962(b).
65. MasterCard's relationship with Internet Casino gambling enterprises is integral to the function of internet gambling in the United States. MasterCard has allowed its name and emblem to be used for internet gambling in supporting the enterprise for more than a year.
66. Thousands of Internet users access casino gambling web pages daily and utilize MasterCard credit to gamble over interstate lines. MasterCard realizes a monetary gain from the interest it assesses on the gambling charge. MasterCard also receives an "association" fee for each gambling charge transaction with the Internet Casinos.
67. The facilitation and creation of an operation of gambling games and the collection of gambling debt through the use of telephone lines and the Internet constitutes an "enterprise" within the meaning of 18 U.S.C. § 1962(c) and 18 U.S.C. § 1961(4).
68. Defendants, through the pattern of racketeering activity herein previously alleged, have directly or indirectly participated in the affairs of the enterprise in violation of I 9 U.S.C. § 1962(c).
69. The activities of the enterprise have affected interstate commerce.
70. Defendants send through interstate telephone lines and the United States mail, invoices, collection notifications, and other communications intended to collect gambling debts and otherwise participate in an intemet gambling enterprise.
71. But for MasterCard's willingness and knowing participation in the operation of illegal gambling activities through the Internet, Internet gambling would be difficult, if not impossible, to accomplish.
72. Plaintiff, and all those similarly situated, require credit card acceptance to conduct Internet gambling on Internet Casino web sites. Because of the enterprise which promotes Internet gambling by facilitating its use with a MasterCard credit card, illegal charges and interest to Plaintiff has occurred.
73. Plaintiff, and all others similarly situated, were injured in their property by reason of Defendants' violation of 18 U.S.C. § 1962(c).
COUNT IV
VIOLATION OF RACKETEERING INFLUENCED
AND CORRUPT ORGANIZATIONS ACT, 18 U.S.C. § 1964(a)
AIDING AND ABETTING LIABILITY
74. Plaintiff realleges paragraphs I through 73 as if fully set forth herein.
75. Because defendants have participated as a principal within the meaning of 18 U.S.C. § 2 they are liable as an aider and abettor to the illegal Internet gambling enterprise.
76. The creation and operation of a gambling enterprise, including the collection of gambling debts over telephone lines and the Internet is an "enterprise" within the meaning of 18 U.S.C. § 1961(4), 18 U.S.C. § 1962(c), 18 U.S.C. § 1084, and 18 U.S.C. § 1955.
77. Each Defendant is either engaged in, or its activities affect, "interstate or foreign commerce" as defined by 18 U.S.C. § 1962(c).
78. Before MasterCard creates an association with its vendors, it conducts an investigation of the vendor and its business. Knowing the primary purpose of the business and its transactions, MasterCard then establishes an association with the vendor in promoting MasterCard credit cards and their use.
79. As a result, Defendants were generally aware of the Internet gambling casinos' activity to solicit Internet users into participating in illegal Internet gambling and knowingly associated with Internet gambling casinos by providing the assistance necessary for Internet users to gamble by credit on the Internet.
80. Without MasterCard's participation, Internet gambling would be difficult, if not instrumental in substantially assisting the principal violation of illegal Internet gambling over interstate lines as an aider and abettor.
81. Telephone and cable lines and the United States mail were used for multiple transactions in furtherance of this scheme or artifice. The repeated use of the Internet, the telephone lines, cable lines and the United States Mail, in furtherance of Defendant's scheme or artifice, constitutes a "pattern of racketeering activity" within the meaning of 18 U.S.C. § 1961(5) and I
U.S.C. § 1962(c).
82. Each and every such use of interstate telephone lines was part of a fraudulent scheme to make money in violation of 18 U.S.C. § 1084(a), and a separate violation of 18 U.S.C. § 1084(a).
83. Defendants receive income, directly from the pattern of racketeering activities herein previously alleged, and each has invested part of the income, or proceeds thereof, in the enterprise, the activities of which affect interstate or foreign commerce in violation of 18 U.S.C. § 1962(c), and each has used, and continue to use, all or a part of such income to fund its ongoing fraudulent scheme.
84. Plaintiff, and all others similarly situated, by reason of Defendants' violation of 18 U.S.C. § 1962(c), were injured in their property.
WHEREFORE, Plaintiff respectfully requests that this Honorable Court enter judgment in their favor, and order as follows:
1. Certification of a class of persons who have been billed by MBNA for charges, principal, interest, fees or penalties for the collection of debts incurred on such credit cards through charges authorized by MasterCard merchants for internet wagering.
2. A declaratory judgment declaring Plaintiffs' alleged debts and those of the Class relating to Internet gambling to be void as a result of their illegality, and canceling any and all MasterCard's claims for payment of such alleged debt;
3. That Defendants be held jointly and severally liable to each Plaintiff in an amount in excess of $ 75,000.00, in an amount as proven at trial, together with prejudgment interest;
4. The full extent of compensatory damages recoverable under 18 U.S.C. § 1964(c), including disgorgement of income prior payments, received as interest and penalties received as part of a gambling debt relating to these alleged debts;
5. Exemplary damages in an amount three times the compensatory damages, pursuant to 18 U.S.C. § 1964(c);
6. Costs, including reasonable attorneys' fees pursuant to 18 U. S.C. § 1964(c);
7. Such other relief as is available pursuant to 18 U.S.C. § 1964;
8. For punitive damages as proven at trial, and
9. For such other relief as the Court deems just and reasonable.
PLAINTIFF DEMANDS TRIAL BY JURY.