pinnacle has been based on the island of curacao since the 1990s.t its peak, it was handling as much as $12 billion a year and was a household name-- in certain households, anyway. >> what price they give you on alvarez? >> $350. >> who you place your action with? >> pinnacle. >> online? >> narrator: after the 2006 law, pinnacle said it stopped taking bets from the united states. within two years, its business dropped in half. >> bogdanich: did they come back? >> well, our investigation revealed that they did, and they were very extensively involved in accepting wagers that originated from the united states. >> narrator: in that particular case, authorities recovered about $10 million and arrestedre 25 people in five states, including stanley tomchin, who pled guilty to a misdemeanor. we wanted to speak to pinnacle sports directly, so we went to curacao, about 40 miles off the coast of venezuela. >> i think that one of the attractions of these zones here is that they have great tax rates. >> bogdanich: and also the tolerant government. >> narrator: