A businessman based in Costa Rica, who confessed to managing the well-known offshore betting platform Tradewinds, successfully avoided incarceration this year, as federal court documents have recently revealed. He was instructed to relinquish $25 million derived from illegal gambling operations.
Michael Lawrence “Scott” Brannon entered a guilty plea in February at the Eastern District of Texas for overseeing an unlawful gambling enterprise against federal regulations. U.S. District Judge Amos L. Mazzant III sentenced him to 12 months of probation, with the first six months under house arrest, as recorded in a judgment on February 19.
Originally hailing from Orange County, California, Brannon will fulfill the first half of his probation in the U.S., while the last six months may take place in Costa Rica, his current residence.
$25 Million in Illicit Gambling Gains
Brannon acknowledged that he “conducted, supervised, and funded” Tradewinds, an illegal sports betting operation involving at least five associates, from August 2013 until April 23, 2021, contravening Texas gambling laws, as detailed in court documents.
He also admitted to acquiring at least $25 million from this illegal business and agreed to forfeit this sum along with the website trdwd.cc belonging to Tradewinds.
The court subsequently issued a forfeiture order of $25 million, requiring $7 million to be paid shortly after sentencing, with the remaining $18 million to be paid in three installments of $6 million each, following the conclusion of Brannon’s home confinement.
Tradewinds has been operating from Costa Rica since the late 1990s and is recognized as part of the initial wave of offshore sportsbooks catering to gamblers internationally.
Brannon is the second individual to face prosecution by federal authorities related to this operation.
Clarence “Gary” Austin pled guilty in 2023 after confessing to also managing and financing Tradewinds during the same August 2013 to April 23, 2021 timeframe.
Background on Austin
Austin gained fame in the 1970s as a high-stakes sports bettor. He even hosted his own show on ESPN in the early 1980s, providing betting guidance. Austin later operated a licensed retail sportsbook on the Las Vegas Strip, known as Gary Austin’s Race & Sports Book, which closed under unusual circumstances in 1985.
Upon bettors arriving at the sportsbook to claim their winnings, they discovered a note on the door indicating that the establishment had permanently shut down after an armed robbery the preceding day. The notice allegedly stated that no further winning tickets would be honored.
Following this, Austin reemerged in Costa Rica, becoming an early participant in the burgeoning offshore online sports betting market.
In 2021, he resided in a Florida mansion when the FBI conducted a raid in relation to the Tradewinds operation.
In 2023, Mazzant imposed a sentence of five years’ probation on him, including six months of home detention.
Austin ultimately forfeited an extraordinary collection seized by federal authorities, which included $1.295 million in cash, 61 one-kilogram gold bars, cryptocurrencies like Bitcoin and Ethereum, millions parked in bank accounts, various annuities, and four luxury vehicles, including a Lamborghini Urus and a Porsche Cayenne. Additionally, three properties in Florida were forfeited.
Brannon’s probation commenced on April 6. Under the terms of his sentence, he is barred from owning, operating, managing, advising, or otherwise participating in any gambling ventures, whether online or through phone systems.