Alabama Ledger www.AlabamaLedger.com
The Sports Ledger www.TheSportsLedger.com
PAGE 5B September 2025
Eleven guilty of managing multi-million dollar Alabama sports betting operation
Millions of football fans are watching the 2025 NFL season in stadiums, online, on television and there are folks who are looking to make money off these fans through sports betting. The IRS-CI Atlanta Field Office is using the NFL season to remind sports bettors to avoid illegally placing wagers on sports. Each fiscal year, IRS-CI initiates over 30 illegal gambling cases, obtaining a 92% conviction rate for prosecuted cases. Over the past five fiscal years, 96 defendants have been convicted of crimes tied to illegal gambling, receiving custodial sentences averaging between five and 33 months in federal prison. "Over the last few years, we’ve seen a number of online crypto casinos offering options for sports betting,” said IRS-CI Chief Guy Ficco. “Many are based offshore and don’t follow Know Your Customer protocols, specifically to attract anonymous users who may be involved in illicit activity. If you want to gamble, do it safely and legally." The “know your customer” guidelines in financial services require institutions verify a customer’s identity, suitability, and assess risks involved while maintaining a business relationship. The largest illegal sports betting case in 2025 for the IRS-CI Atlanta Field Office involves the Red44 illegal sports betting operation in Alabama. Eleven defendants pleaded guilty to managing a multi-million-dollar sports- betting operation. “This case centers around an illegal offshore sports book that operated in clear violation of federal tax laws and Alabama state law, where sports gambling remains illegal,” said Special Agent in Charge Demetrius Hardeman, IRS Criminal Investigation, Atlanta Field Office. “The defendants failed to pay the required federal excise taxes, laundering and benefiting from millions in illicit betting proceeds, investing their ill-gotten gains to benefit themselves and spending on personal luxuries. This was not a victimless crime. It was a calculated scheme to profit while evading the law and cheating the American public out of tax dollars that support vital services.” Eight of the defendants have already been sentenced and the last three were scheduled for Sept. 9 in Birmingham. “With over $19 million in criminal proceeds and assets seized, these sentencings underscore a simple truth that those who rig the system, exploit legal gray areas, and move their operations offshore to avoid accountability will face serious consequences,” Hardeman said. “No matter the season, IRS Criminal Investigation will not stand by while criminals profit at the expense of honest taxpayers. We will continue to follow the money and protect the integrity of our financial system.”
When placing bets, use state-licensed gambling operations and platforms that are legal in your jurisdiction. Steer clear of offshore and crypto-based gambling platforms that attract anonymous users by avoiding Know Your Customer protocols. Make sure to report all gambling winnings as taxable income to avoid civil and criminal penalties from the IRS and never accept payment to place bets on behalf of someone else or gamble to obscure the source of funds. You could find yourself in the middle of a money laundering conspiracy. Sports enthusiasts who are unsure about their tax obligations or have questions about reporting gambling income are encouraged to consult tax professionals or visit the official IRS website for guidance. Ignorance of the tax law does not exempt individuals from their responsibilities. For more information on reporting gambling income and other tax-related inquiries, visit the IRS’ Gambling Income and Losses Page. The IRS-CI Atlanta Field Office encourages the public to share information regarding known or suspected tax and financial fraud. To report a suspected crime, taxpayers may visit IRS.gov or contact the IRS-CI Atlanta Field Office by email at atlantafieldoffice@ci.irs.gov. The Red44 illegal sports betting operation cases include the following. • Timothy J. Pughsley, of Birmingham, - Sentencing was scheduled for September 9. Agreed to pay nearly $6M in restitution to IRS plus additional monetary penalties • Nathan Burdette, of Birmingham, - Sentenced on Aug. 12. Ordered to pay $2,468,172.75 in restitution to IRS. • Jonathan Lind, of Birmingham, - Sentenced on May 14. Ordered to pay $41, 867.51 in restitution to IRS. • Christopher Burdette, of Chelsea, - Sentenced on Aug. 11. Ordered to pay $763,434.25 in restitution to IRS • Thomas Zito, of Vestavia, - Sentenced on May 19. Ordered to pay $828,184.66 in restitution to IRS. • Joshua Gentrup, Athens, GA - Sentenced on Aug. 12. Ordered to pay $983,373.06 in restitution to IRS. • Gary Rapp, Lakeland, FL - Sentencing was scheduled for Sept. 9. • Mark Giaquinto, Upton, Massachusetts, - Sentenced on May 14. Ordered to pay $2,926,191.30 in restitution to IRS. • David Richards, Las Vegas, Nevada - Sentencing was scheduled for Sept. 9. • Matthew Voorhees, Englewood, Colorado, - Sentenced on Aug. 11. Ordered to pay $1,481,996.91 in restitution to IRS. • Christopher Donaldson, Trussville, - Sentenced March 11. Ordered to pay $173,233.75 to IRS.
Scottsboro Running Back Brandon Edmonson Jr. in action against Boaz. Photo by Brandon K. Pierce, The Sports Ledger
Photo by Addi Ray, Auburn Tigers
Auburn University quarterback Jackson Arnold looks to pass the football during the Tigers 42-3 victory over Ball State at Jordan- Hare Stadium on Sept. 6, 2025. With the win, Auburn moved to 2-0 overall and entered the AP Top 25 at No. 24. The Tigers are now 3-0 after a 31-15 win over South Alabama.
Jax State Defeats CUSA Foe Liberty players for staying focused on doing their jobs. Offensively, the
By Brandon K. Pierce The Sports Ledger The Jacksonville State University football program has played two games this season and both have been delayed in the second quarter due to weather. The Gamecocks lost a little momentum in the season opener at UCF following the delay and fell to the Knights 17-10. However, in Jax State’s home opener on Saturday, September 6 at AmFirst Stadium, a 1:22 weather delay had a different result as the Gamecocks rallied in the second half for a 34-24 CUSA victory over Liberty. "I wasn’t expecting the rain delay,” said Jax State Head Coach Charles Kelly. Although the Gamecocks were not expecting the break, Kelly said his program was prepared for the situation and that he was proud of his
yards passing. Teammate Andrew Paul recorded 67 yards on the ground and he rushed for the Gamecocks’ first touchdown of the season this year at AmFirst Stadium. The win also marked the first victory for Kelly as the Gamecock’s head football coach. Jax State was back on the road for week three of the season and for the second time this year. Just like the first road game, which resulted in a loss to UCF, the Gamecocks suffered defeat in week 3. Jax State (1-2) fell to Georgia Southern 41-34 on Saturday, September 13 in front of a sellout crowd of 24,585 in Statesboro, GA. Wimsatt led Jax State with 178 yards passing, one touchdown and an interception. Cook gained 120 yards against Georgia Southern, giving him a total of 390 yards this season.
Gamecocks relied on the running game from start to finish. That strategy paid off as Jax State rushed for 346 total yards and four touchdowns in the win. "Anytime you can run the football it’s going to give you a chance to win the game,” said Kelly. "I felt like we could run the ball.” Cam Cook led the Jax State ground game with 195 yards rushing and two touchdowns. Cook attributed the running game’s success to the offensive line and their upfront dominance. He also felt like all his teammates were on the same page. "No matter who is in, we're all going to do our job, do our part,” said Cook. Jax State quarterback Gavin Wimsatt had 78 yards rushing and a touchdown. He also had 52
Photo by Brandon K. Pierce, The Sports Ledger
Jax State Quarterback Gavin Wimsatt.
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