There’s a great article at Covers.com that discusses the battle David Carruthers, ex CEO of BetOnSports, is preparing for in a US court of law. Games and Casino reported earlier this week that Carruthers had sent a letter to BoS advisors and politicians asking the UK for help.
“…Carruthers is the former CEO of U.K.-based sportsbook, BetonSports.com. He was arrested last July in Fort Worth… charged with numerous offenses related to the operation of the company.”
“…in a letter sent to former advisors of BetonSports, Carruthers asked his allies to lobby the U.K. government for support in his case. He also accused the U.S. government of actions that have “destroyed businesses, free competition and lives” and disclosed that he will use a recent World Trade Organization (WTO) ruling as a part of his defense.
“In a ruling on Feb. 15, 2007, a WTO panel found the U.S. in violation of international trade agreements and “was acting inconsistently with its obligations under … the GATS (Global Agreement on Trade in Service).” The panel also found that the U.S. defense of “public morality” did not apply because American laws allow other forms of Internet betting, such as horse racing and lottery betting.” “…The U.S. did not amend its domestic laws … Instead they claimed they never meant for Internet gambling to be included…”
“In his letter Carruthers wrote, “The U.S. decision to arrest me not only shut down BetonSports, but the actions by the U.S. government have destroyed nearly all the public online gaming companies in the U.K.”
“Based on what the WTO has now called a treaty violation, more than $10 billion in equity of U.K.-listed companies were wiped away. Three U.K.-listed gaming companies have closed completely and other U.K. citizens have been arrested as well, victims of a policy that the WTO has now determined as unfair and violates their treaties.”
“This case could become one of the most significant in the long history of legal wrangling between the U.S. government and the online gambling industry.”
“…The Missouri judge presiding over Carruthers’ case decided that the WTO decision would be permissible as grounds for the dismissal of the indictments against Carruthers.”
Carruthers has always spoken of the need for online gambling to be regulated, licensed and taxed, and insists the US should give legitimacy to an industry that does not deserve the bastard label the government supports and enforces.