BetonSports.com Owners Get Indicted in the US

Filed in archive Betting on July 17, 2006

Since the anti-online gambling bill went through the House of Representatives last week, some people in the US are clearly out with strong arm tactics to prove their point.

David Carruthers, the outspoken British CEO of UK-listed betting site, BetonSports.com was detained in Dallas over the weekend during a US stopover enroute to the UK from Costa Rica. Carruthers and 10 others, including BetonSports founder, Gary Kaplan have been under investigation by a grand jury in Missouri. Members of Kaplans family are included, as well as several companies in Florida.

The eleven have been charged with tax evasion, racketeering and conspiracy - Kaplan has been accused of not paying taxes on $3.3 billion bets taken by the site.

"Illegal commercial gambling across state and international borders is a crime," said U.S Attorney Catherine Hanaway of the Eastern District of Missouri in a press release. "Misuse of the Internet to violate the law can ultimately only serve to harm legitimate businesses. This indictment is but one step in a series of actions designed to punish and seize the profits of individuals who disregard federal and state laws."

On news of the arrests, gaming stocks in London went into freefall - with betonsports losing 17% of their shareprice and Sportingbet also losing points.

Article: Online Gambling-Site Owners Busted