29 July 2006


    July 28, 2006, 3:58PM
    By DAN CATERINICCHIA AP Business Writer
    © 2006 The Associated Press

    WASHINGTON — Attorneys at the Justice Department headquarters here have been involved from the outset of an investigation by the US Attorney’s office in St. Louis of BetOnSports PLC that so far has resulted in a court-ordered suspension of its operations and the arrest of the British online gambling company’s chief executive.

    David Carruthers was arrested July 16 at Dallas-Fort Worth International Airport in Texas while trying to make a connecting flight from the United Kingdom to Costa Rica, where BetOnSports is based. The site suspended U.S. operations July 18 following the issuance of a temporary restraining order by the U.S. government. On Monday, a hearing on the order is scheduled at the U.S. District Court in St. Louis. Carruthers, whose employment contract with BetOnSports was terminated July 25, will be arraigned in a separate hearing in St. Louis.

    The BetOnSports case has garnered media attention because it is one of the largest companies to date that the government has taken legal steps against. In the fiscal year ended Feb. 5, BetOnSports said it had handled $1.8 billion in bets. The case also attracted attention because Carruthers has been an outspoken advocate of online gambling. “I’m optimistic that we can come to agreeable terms for his release,” at Monday’s arraignment, said Tim Evans, Carruthers’ Fort Worth-based attorney.

    Going after a high-profile player may not be coincidental, but the case, the latest of many the Justice Department has brought and continues to pursue, is not part of a coordinated federal crackdown on the industry, according to spokesmen there.

    Carruthers, company founder Gary Kaplan _ who the Justice Department says is still at large _ and nine others were named in a 22-count indictment unsealed last week by federal prosecutors. The government says BetOnSports fraudulently took bets from U.S. residents by phone and the Internet, and failed to pay excise taxes. It is seeking the forfeiture of $4.5 billion, cars and computers from the defendants.

    MORE – Read the complete article at Chron.com

    Related News

    • Kalamba s new brand bullseye to offer remote gaming server and promo tools

      Gambling News

      Kalamba is Shooting Right in The Center with Its New Brand “Bullseye”Kristina Vujadinovic14 July 2020

      One of the most innovative software providers, Kalamba Games, has announced the launch of its new Bullseye brand. This new product will include a proprietary remote gaming server (RGS) as well as promotional tools, for an increased level of entertainment and engagement. The release is scheduled for the second half of the year, while the brand will have over 35 provider's titles in its offer.

      Read full article
    • Congress

      Gambling News

      Congressional Hearing Set Up for RAWA in Early December11 November 2015

      The Restoration of America's Wire Act is the product of Sheldon Adelson's campaign to end online gambling in the United States to protect his land-based casino empire. It hinges on changing the Wire Act from the 1960s, an act used to combat organized crime sports betting operations that took bets over the phone, to something it was never meant to be: a law that affects all forms of gambling on a piece of technology that wasn't even invented yet.

      Read full article
    • Californiapoker

      Gambling News

      California Continues Looking at Online Poker27 May 2015

      In hearings this week in the joint Senate-Assembly for the state of California, Governmental Organization committees heard expert testimony from several interesting parties that had a lot to say about the feasibility of vetting and licensing operators. They also heard from others who had other types of interest in the proposed legislation, and a strong case for online poker's expansion continued to be heard. Handling Regulated Online Poker

      Read full article