BETONSPORTS FACES LEGAL ACTION FROM ANTIGUA-BARBUDA REGULATOR

Caribbean Net News
Friday, December 1, 2006

ST JOHN’S, Antigua: The Financial Services Regulatory Commission (FSRC) of Antigua and Barbuda on Thursday announced that it has filed an application for a restraining order in the High Court of Justice, against BETonSPORTS (Antigua) Ltd.

BETonSPORTS (Antigua) Ltd, an interactive gaming and interactive wagering service provider, under the order is restrained from, among other things, entering into any agreement or arrangement to sell, transfer or otherwise dispose of cash and assets within or outside of Antigua and Barbuda without the consent, management and supervision of FSRC.

The application also calls for BETonSPORTS to account for its assets and obligations and otherwise provide such information that will assist the FSRC in ensuring that BETonSPORTS consumers are protected to the maximum extent possible and that Antigua and Barbuda’s Laws and Regulations are adhered to effect the orderly closure of BETonSPORTS’ US-facing operations.

The application for the order comes on the heels of an announced settlement between the United States government and BETonSPORTS and its affiliates pertaining to criminal and civil charges levelled against the company by United States authorities earlier in the year.

These charges, which resulted in the high-profile arrest of BETonSPORTS former Chief Executive, led to wide-spread disruption throughout the international online gaming community and represented a new assault on cross-border competition for gambling and betting services by the United States government.

Kaye McDonald, the Director of Gaming for the FSRC, observed, “While the jurisdiction of the United States government over BETonSPORTS is questionable, by virtue of being the holder of an Interactive Gaming and Interactive Wagering license issued by the Antiguan and Barbudan authorities, BETonSPORTS has acquiesced to our international jurisdiction over the company and its assets. It is important for the protection of consumers that whatever assets BETonSPORTS has remaining be properly available to depositors and other creditors and not be dissipated on fines or penalties or otherwise improperly disposed.

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