BodogLife.com – once known simply as Bodog.com – is in worse straits than new owners Morris Mohawk Gaming Group has let on.  The payment processing debacle is growing worse and the amount of employees left in the international company is quickly dwindling.  With rumors of shell corporations set up in Nevada for funds transfers and $24 million in accounts that were linked to both Bodog and Zip Payments, the company that had been processing money transfers, the company has had little to no luck finding new methods to pay their players.  Right now, the dummy companies in Nevada are being heavily scrutinized

According to court documents, Bodog’s international structure allowed the company to collect money and issue checks to American gamblers who won on the website.  So far, the IRS is reporting $248 million involving entities that are linked to Bodog.  $11 million of the $24 million that was seized was processed through Wachovia Bank alone.  The investigation into Bodog’s financial actions was started in 2003 and within three years the IRS had enough information to open a formal probe.  This was at the same time the American government began to crack down on online gambling financial services such as Neteller and gaming sites such as Beton Sports.  Included in the investigation were public and bank records, witnesses, informants, and undercover agents placing bets on football and collecting winnings.

Bodog released another 300 employees as well this week and they are already predicting more soon.  The office in Canada is already down to a skeleton crew.  Their efforts in breaking into the European market has been thwarted by lack of advertising licensing in the United Kingdom and the fact the companies do not want to process payments for the online casino.  They recently opened an office in Dublin, Ireland and the staff there feels the financial strain the company is under.

Industry pundits feel that some of Bodog’s problems have been their inability to lie low and that their high profile has not helped.  There are still questions as to why Calvin Ayre, Bodog’s founder, left so abruptly in spring 2008.  They were considered the ‘future of online gambling’ when they first launched, but that future seems to be fizzling rather quickly, the company peaking in 2006.   

How much longer Bodog can hold out remains to be seen.  Companies such as Gambling911 and Covers.com have severed all ties with Bodog and there is speculation that the site may make through football season relatively healthy.  After that, however, could be a problem with the poker and casino sites keeping it going on a short-term basis only.  But in reality, how many new players are they going to attract if they can’t collect their winnings?