Bettor Racing Inc., a bet rebate company based in South Dakota whose customers are usually high rolling horseracing wagerers, is filing Chapter 7 bankruptcy after it lost a court case against the National Indian Gaming Commission and the Flandreau Santee Sioux Tribe.
It owes the tribe $6,117,977 or roughly half of its total liabilities. It owns NIGC $4,522,722. The company has pledged to pay 100% of the debts it owes due to a bond that insures players for up to $10,000 per account.
Owner Randy Gallo of Jupiter, Florida, says he will make up the difference out of his personal funds. “I have never cheated anyone a dime in my life,” he said.
Bettor Racing has always had a high reputation for integrity and for its professionalism. At one time, it handled $171 million annually in horseracing bets.
Gallo, who was once partners with the tribe, got in trouble with the NIGC because he changed the interest rate he was charging the tribe for providing his rebate service without running the contract change by the NIGC.
In 2011 the NIGC issued a Notice of Violation to both Bettor Racing and the tribe for violating the Indian Gaming Regulatory Act. It fined Gallo $5 million and said Bettor Racing owed the tribe $4,544,755. The company fought the fines until it ran out of options and it has now ceased operating.
Gallo has been approved for a new company called South Dakota OTB Inc., but cannot be granted his license until he makes good on all his debts to Bettor Racing customers.
