Susan Bala complains to state Supreme Court...again

Jan 26, 2010 3:33 AM

 

Showing the tenacity of a pit bull, Susan Bala, the controversial operator of the defunct Racing Services Inc. of Fargo, North Dakota, is taking her complaint of having been illegally taxed to the state Supreme Court.

Bala, who at one time led the country in providing big-time horse bettors with an Internet wagering site, was successful in her first appearance before the court. After having served nearly two years on illegal gambling charges, Bala had her conviction reversed by the high court.

Now she claims the state illegally taxed Racing Services Inc. and then drove it out of business in 2003. The state contends the business should have paid nearly $7 million in taxes on wagers it accepted.

Her lawyer stated that at the time Bala ran RSI the state had no actual regulations governing operation or taxation of such Internet activity. Yet, she and RSI were charged and convicted of taking $99 million in wagers at an unlicensed off-track betting site.

On appeal, the state Supreme Court reversed the convictions and ruled there was insufficient evidence to convict Bala and the company.

During its operating period, RSI paid the state $4.2 million in taxes which Bala now contends were extracted illegally.

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