WICHITA, KAN. – Danny Chapman, 68, Wichita, was sentenced Thursday to two years on supervised probation for operating a gambling business and failing to pay income taxes on the proceeds, according to U.S. Attorney Stephen McAllister.
In addition, Chapman agreed to forfeit more than $1.6 million in cash, as well as cars, jewelry and other items.
Chapman pleaded guilty to one count of operating an illegal gambling business and one count of tax evasion.
In his plea, Chapman admitted he worked as a sports bookmaker in the Wichita area and had at least five people working for him. Chapman and his subordinates took bets on sporting events from clients in their “book” of bettors and collected from clients who lost their bets. They arranged for clients to place bets through online gambling web sites that were created and hosted in Costa Rica. Chapman and subordinates kept a portion of the money they collected. The operation grossed as much as $2,000 in a single day.
Chapman admitted he failed to pay almost $345,000 in federal income taxes on his earnings from illegal gambling.