Yes, the arrests are based on obscuring the ultimate destination of funds transfers (which is indeed illegal under US money laundering laws) for the purpose of illegal sports betting (which is a criminal activity under the wire act). These arrests are not directly related to the unlawful internet gambling enforcement act.
Our editorial staff at Casino City has been busy researching this story all day. We have links to the actual arrest warrants, to the government press release, and the stories we have written are posted on the following thread in the GPWA forums: http://www.gpwa.net/forum/showthread.php?t=169144.
I will also be posting additional commentary on my views of the arrests on that thread later this evening.
Michael Corfman
Casino City