London-based gaming website Betonsports has pleaded guilty in the US to charges of money laundering and racketeering.
The internet gambling firm and its top executives were indicted on criminal charges relating to their US operations in June 2006.
Betonsports' founder Stephen Kaplan and former boss David Carruthers are both under arrest and await trial.
Charges were filed using a 1960s-era law banning bets over the phone, part of a US crackdown on online gambling.
Closing down
"This plea should put an end to the Betonsports illegal gambling empire"
By pleading guilty, Betonsports has admitted mail and wire fraud, operating an illegal gambling business and money-laundering, US attorney Catherine Hanaway said.
"This plea should put an end to the Betonsports illegal gambling empire," she said.
The company now faces fines of up to $500,000 (£251,880), billions of pounds in forfeitures and the return of money held on behalf of US account holders.
Betonsports will also supply witnesses and evidence in the case against Mr Kaplan and Mr Carruthers as part of the agreement with the prosecution to avoid further criminal prosecution.
According to Jeffrey Demerath, a lawyer representing Betonsports, the firm will now cease operating and be wound up.
The plea was submitted to a federal court in Missouri, where Mr Kaplan pleaded innocent to charges of racketeering, fraud, tax evasion and conspiracy earlier this month.
Gaming firms in dock
He is one of 11 people accused of illegal activities relating to the US operations of internet gaming businesses based overseas, which includes Betonsports.
He was arrested in the Dominican Republic in March.
Mr Carruthers was arrested by US authorities as he passed through a Texas airport in July and was sacked shortly afterwards by the company, which subsequently shut its lucrative US-facing arm.
President George W Bush signed the Unlawful Internet Gambling Enforcement Act last October, which in effect, makes it illegal for firms to collect money there.
As a result, a number of firms - including 888.com, Sportingbet, and Partygaming - have abandoned the US and focused on other markets to make up the lost revenue.
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