Authorities said Cory Zeidman, a poker player, pleaded guilty to federal charges linked to a yearslong sports betting scheme.
Authorities arrested Zeidman, 63, in connection with the $25 million scheme in 2021. The U.S. Attorney’s Office for the Eastern District of New York announced that he pleaded guilty in a federal court in Long Island, New York. Zeidman, together with his partners, used fake names and high-pressure sales tactics, and falsely led clients to believe the organization had access to non-public information about things such as player injuries and fixed matches. According to court documents, the information was fake or based on public information in reality.
According to court documents, authorities charged bettors exorbitant fees for the information. They told the bettors it would allow them to gamble on college and professional sports with little to no risk. In 2021, CBS reported that Ziedman and his partners collected $25 million in fees over more than 16 years.
Zeidman pleaded guilty to conspiring to commit mail and wire fraud. He faces a maximum sentence of 20 years in prison, along with forfeiture and restitution estimated at $3.6 million. This is according to the United States Attorney’s Office.
Zeidman lives in Florida. CBS Sports reported that he gathered $690,146 in career earnings as a professional poker player.
Since a 2018 Supreme Court decision allowed states to legalize the activity, sports betting has surged in recent years. Ever since, 39 states have done so. In June, 60 Minutes reported that Americans have spent over a quarter of a trillion dollars on sports betting.
