California Bookie to Pay $14 Million in Fines After Copping to Tax Evasion Charges

Posted on: April 29, 2025, 05:04h. 

Last updated on: April 30, 2025, 09:44h.

Todd Shriber @etfgodfather Read More
Expertise: Financial, Gaming Business, Mergers and Acquisitions.
  • Christopher Scott King ran an illegal betting operation out of Los Angeles
  • DOJ says he caused significant loss to IRS

A California bookmaker pleaded guilty on Tuesday to charges of money laundering, running an illegal sports wagering business, and tax evasion, agreeing to pay $14 million in fines to the federal government.

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Crypto.com Arena, home of the Los Angeles Lakers. A Los Angeles man pleaded guilty to illegal bookmaking charges and will pay nearly $14 million in fines. (Image: Los Angeles Magazine)

Christopher Scott King, a resident of Santa Monica, Calif., illegally booked bets out of Los Angeles using a website operating out of Costa Rica — a tactic often deployed by tech-savvy local bookies. The Department of Justice (DOJ) said that he violated both federal and state laws, adding that King evaded his obligations to the IRS.

Between 2019 and 2022, King concealed $13,586,493 of income from the IRS by, among other things, not reporting all of his income on his tax returns,” said the Justice Department. “On his 2022 income tax return, for example, King reported $143,258 in taxable income, but, in reality, he earned more than $5 million in income that year.”

DOJ added that King caused total loss to the IRS of more than $3.8 million. The federal agency didn’t mention how much King owes to California and he doesn’t appear on the Franchise Tax Board’s list of top 500 delinquencies, but it’s likely a hefty sum because California’s top income tax rate of 13.3% is the highest in the US.

Used Cash to Buy Real Estate, Stocks

The Justice Department said King washed his ill-gotten gains by buying gold and pouring some of the cash into various real estate projects, adding that some of the illegal capital was also funneled into his brokerage accounts.

As part of his plea agreement, King will pay a personal money judgment of forfeiture of $10 million when he’s sentenced on September 9. That’s on top of the more than $3.8 million owed to the IRS, bringing his obligations to the federal government to nearly $14 million. Regarding his upcoming sentencing, King could face considerable jail time.

He “faces a maximum penalty of five years in prison for each count of tax evasion, operating an illegal gambling operation, and accepting a financial instrument for unlawful internet gambling, and 10 years in prison for money laundering. He also faces a period of supervised release, restitution, and monetary penalties,” according to DOJ.

Should the state opt to pursue charges against King, and if he’s found guilty of evading income tax payments, he could face up to three years in prison if found guilty of felony counts under the state’s Revenue and Taxation Code section 19706.

King Likely Had a Receptive Audience

Judging by the numbers mentioned by the Justice Department, it’s clear King’s bookmaking operation was robust, which makes sense because he was operating out of the largest city (second-largest in the US) in the most populous state.

Black market bookies, both of the internet and local variety, have a captive audience in California because sports wagering isn’t permitted in the state. A 2022 ballot initiative backed by the commercial gaming industry was soundly defeated after the state’s tribal casino giants supported a competing proposition to ensure its defeat.

The tribes, which control the gaming landscape in the Golden State, have shown little appetite for renewing the sports betting issue and the earliest it could again be presented to voters is next year, but the tribes are taking a pragmatic, wait-and-see approach.