The House Always Wins

But Is It Legal? A Web Gambling Mogul Tells His Story To CBS

(CBS)  Not far away, at bodog.com headquarters in this Central American tax haven, you can hear the bets coming in, as the bookmakers keep their eyes on the odds – 24 hours a day.

They've got to, says Ayre.

"If they make mistakes, we lose money," he says, watching them at work. "But these guys never make mistakes. Right, guys?"

Ayre may himself may be playing a risky game. The U.S. Justice department says taking bets over the Internet is against the law.

"We don't consider what we're doing illegal, though," says Ayre, explaining his view that the operation is in the clear because the transactions occur in Costa Rica.

Bodog.com took in more than $7 billion in bets last year - most of it from the U.S., where Ayre says the company has no office, no employees, and pays not a penny in U.S. taxes.

Asked if he should be paying taxes to the U.S., Ayre says: "I think we should be allowed to compete in the United States... But right now the government of the United States has chosen not to participate in this industry."

So far, the U.S. government has not come after Ayre, but Canada has. In 1996, accused of insider trading, he agreed to a 20-year ban from the Stock Exchange.

That incident he now calls a mistake and "a very valuable learning experience."

The flashy lifestyle isn't completely a matter of personal indulgence.

On magazine covers and in gambling shows he is now developing, Ayre works at epitomizing the playboy lifestyle to which his customers aspire.

The attention it brings, says Ayre, is good for business.

A bit risky?

"Potentially," he acknowledges, "but so is going broke."

Ayre likes his odds, even if he may be gambling with the law.