17 July 2006


    News released earlier today reported BetonSports CEO David Carruthers was detained by US federal authorities while he was in the US changing flights on his trip from the UK to Costa Rica.

    No statement has been released regarding the reason for the detention; in fact very little at all is known about the reasons behind the actions by the U.S. The company BetonSports has not made an official statement, just saying an announcement will be made when appropriate.

    After news broke on Carruthers, trading on BetonSports and other companies like PartyGaming PLC traded down.

    Canaccord advised its clients the move is more than likely politically motivated although the broker followed this up by saying it’s too early to say if this is a new strategy on the part of the US to intimidate or if the US Department of Justice was ‘flexing its muscle and trying to influence legislation’. The legislation referenced is the Goodlatte/Leach bill prohibiting gambling over the internet (excluding horseracing or government run programs such as lotteries) which recently passed the US House and is slated for presentation in the US Senate.

    Mr. Carruthers has recently been seen on CBS EVENING NEWS and written articles like the one in the BALTIMORE SUN on regulating and taxing online gambling. It’s possible his stand on internet gambling has made him a target of the Department of Justice.

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