NEWS ALERT - David Carruthers, detained by US authorities

[Westland Bowl]

This sat almost side-by-side in the Telegraph newspaper today with the announcement that from September 2007, UK licenced online casinos will be allowed to advertise on television.

Strange - the contrasting cultures of freedom and oppression side by side

Didn't it used to be that people left UK because of supposed oppressive taxation rates prior to 2000??? Thirty years ago, I've read some British rock stars moved to US because of this. Now it seems that this has reversed (though I'm sure you want Madonna to move back to US! ).

 

[winbig]

Now it seems that this has reversed (though I'm sure you want Madonna to move back to US! ).

No, they can keep her.

 

[Simmo!]

BetonSports took wagers...over a toll-free telephone line

Key point above. 1961 Wire Act. Thats what this is largely about in my view...encouraging US citizens to break the law via telephone betting on sports.

 

[Webzcas]

The problem you and other "officials" of P&CA might soon face though, is the application of RICO statutes to the on-line gambling association as a means of going after individuals only peripherally associated with online gambling. I would hope that such doesn't happen, but the possibility does exist

If I were in your shoes Dave, I'd have legal counsel check into this. Yeah, I know its unlikely to be a problem here at P&CA, but its possible nonetheless.

Precedent is already set in USA case law as regarding illegal activities which are facilitated over the internet regardless of the site of the server. I'm not talking file-sharing per se, but regarding criminal prosecution of child pornography here in the states. I hope you look into this potential problem.

BTW, I doubt mere members could be under fire (unless they promote a gambling site in their signatures, etc.) as they have no power to affect changes to the website as a whole.

Again, I doubt this sort of thing will be a problem here, but I figure it bears some research.....

(For the record I figure this will end like Prohibition did....)....

This was posted on my politics forum by a right leaning US Poster. Apparently according to this american poster, I could be in stttuck for having gambling links and a roxy banner at the footer of the forum.

Don't know whether to or at his post

 

[Tigr50]

At least one of my Senators is voting against

Got a letter from Sen. Pete Domenici today saying he was voting against Senate bill 2628.

He says, "I believe the Internet is a prime example of free market principles that have made America so successful and I oppose any attempt to place overly burdensome relulations on it." Period. Paragraph.

As for this Carruthers, et. al., how does Homeland Security (of which the FBI is now a part) get suckered into arresting folks for tax evasion? Just reading this thread, I feel like I am in being terrorized by my own government.
Tigr50

 

[winbig]

I don't know how it applies to over the phone or overseas, but:

If you buy something online you only have to pay taxes on it only if you live in the same state that the company is located in.

How can they even think about charging them with tax evasion?

[edit]On a side note, why don't they go after these unlicensed scammers selling drugs online? I'm sure they'd get a ton of tax revenue from that! At least gambling online doesn't have the risk of killing you like those pills can....

 

[tennis_balls]

i see that betonsports has shut-down at least temporarilly.....all their homepage says is to please go to CM and PAB to get your money back

 

[cslate]

Well.

Let the games begin.

Why shut down....??

I can still wager on any other site.

Did they take their money?

I would have to say the aquired the land their servers are located on.

This is just the start.

There is alot of talk here north of the border (eh) in regards...our stocks have dropped also in regards to online gaming.

Could the indian reserves be next ie....Kanawake....

 

[cslate]

edit]On a side note, why don't they go after these unlicensed scammers selling drugs online? I'm sure they'd get a ton of tax revenue from that! At least gambling online doesn't have the risk of killing you like those pills can....

Being from way up north in Canada I have a couple questions.


Does the US get revenue from online gaming?


Have people killed themselves because of online gaming?

 

[jetset]

Here's Calvin Ayre's take on the situation:

Sunday's arrest in Texas of Carruthers, chief executive of the online gambling company BetOnSports, could appear "ominous" to other businesses, "but that is not the case at all," Ayre said in a statement to The Associated Press.

"The charges are specific to the person and company at issue, and has nothing to do with Bodog.com's current or previous business practices," he wrote.

The 44-year-old Ayre, who is listed by Forbes magazine as one of the 1,000 richest men in the world, lives part-time in Costa Rica, where his private company is based.

In his statement, he said that Bodog has "an innovative and different business model that allows us to run our entertainment enterprise within the laws set out in each of the jurisdictions where we conduct our business.

"Bodog.com will continue to carry on its business as usual and our organisation is confident the U.S. government's actions will have no impact on our operations," he added.

Carruthers was arrested at the Dallas-Fort Worth International Airport as he awaited a flight to Costa Rica, where BetOnSports also has operations. He and 10 others face charges of conspiracy, racketeering and fraud in taking sports bets from U.S. residents.

U.S. authorities said an arrest warrant also was issued for company founder Gary Stephen Kaplan, who has been indicted on 20 felony counts.

A federal court also issued a temporary restraining order Monday to prevent BetOnSports from accepting bets in the United States, which is reported to be the company's biggest market.

Meanwhile, Antiguan Finance Minister Errol Cort said his Caribbean nation would closely monitor the legal action against BetOnSports PLC and 11 people involved with gambling over the Web.

"This is of major concern to us," Cort told reporters Tuesday during a break in a government economic forum. "This could have implications on individuals who are doing business in Antigua."

The two-island nation of Antigua and Barbuda has licensed 30 online gambling firms, including BetOnSports, and has welcomed the industry as a way to diversify its economy.

Antigua has filed a challenge against U.S. restrictions on online gambling with the World Trade organisation.

This is simply one opinion, but I think this could be an opportunity to pick up some non-BoS gambling stocks at bargain basement prices. There's a risk attached, for sure but also the possibility of good short to medium returns. I don't see these companies staying down in the basement for long.

 

[paul1]

Bet on Sports Indictment

Just in case anyone's interested, here's the indictment against BetonSports, in pdf file.

Holy shit!

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[Pinababy69]

Wow, what a read. I skimmed it, but one thing I did notice is that it is not limited to telephone wagering. The terms illegal internet gambling/illegal internet gambling websites are used frequently. My mind is absolutely boggled and baffled by this. I never thought I'd see the day, although I don't know why I'm surprised. Once again, the good old USA has decided to save it's citizens from themselves. I wonder if they conducted a public poll, how many taxpayers would stand behind spending millions of dollars on this "investigation" and prosecution. They must have a huge surplus of tax dollars if this is all they can find to spend it on.

Towards the end of the indictment, there's a list of property that's to be confiscated under the RICO act. If any of those Hummers etc. were mine, and I knew someone had access to them, I'd set them on fire before I'd let the US government so much as touch them.

It's sort of comical how they refer to the corporation(s) as the "Enterprise". How appropriate in a way, because this whole thing is reminiscent of a Star Trek episode. I hope that Carruthers et al. have very deep pockets, and I hope they assemble a legal team that rivals OJ's. I sincerely hope they wipe the floor with them. God bless America indeed.

 

[winbig]

I think the final straw in this saga was:

(23) On or about April 12,2006, BETONSPORTS PLC owned web site
BETonSPORTS.COM solicited and accepted wagers from an individual residing in the State of
Washington, in violation of that State's laws.

 

[tennis_balls]

i checked via casinocity and some of BetOnSports' sites appear to still be up, but all the main ones are shut-down.....248casino appears to still be going as does easybets

Calvin Ayre seems relaxed, but what would you expect him to say? he's definately smarter about avoiding trouble than BetonSports. plus he's Canadian so that makes him less of a target. Bodog's big conference in Vegas starts Sunday so it will be interesting to see how that goes.

 

[lottethedog]

why does being canadian change anything? the BOS ceo was from the uk?

the government of costa rica must be worried considering the numbers employed in the industry

 

[Casinomeister]

World Online Gambling Law Report: Emergency Briefing

World Online Gambling Law Report:


Emergency Briefing:


Online Gambling & the US


July-August, London



World Online Gambling Law Report is organising an Emergency Briefing to
analyse the legal background and significance of the recent action taken by
the US authorities.


The Briefing will be held in London in the next two weeks.


The Briefing will analyse the 22-count indictment charging 11 individuals,
including David Carruthers, CEO of BetonSports, and four corporations,
including BetonSports, on various charges of racketeering, conspiracy and
fraud.


The Briefing will also consider the significance of the temporary
restraining order issued by Judge Catherine D Perry ordering BetonSports PLC
to stop taking sports bets from the United States and to return money held
in wagering accounts to account holders in the United States.


U.S Attorney Catherine L. Hanaway of the Eastern District of Missouri warned
in a US Department of Justice press release on 17 July: "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."


The Emergency Briefing will also consider the issue of extradition in the
light of the US action and recent extradition cases.


The Briefing will also look at developments in Congress, as the Unlawful
Internet Gambling Prohibition and Enforcement Act of 2006 heads to the
Senate after its passage through the House of Representatives.



Venue: TBA, Central London


Time frame: We are working to produce this briefing on or before 4 August

Dan Towse
Sales Manager
World Online Gambling Law Report
Cecile Park Publishing Ltd.
Unit 17 The Timber Yard
Drysdale Street
London N1 6ND UK


Tel: +44 (0)20 8374 5243
fax: +44 (0)20 8374 1743
email: dan.towse@e-comlaw.com

 

[Pinababy69]

That's interesting Bryan. Anyone from here thinking of attending? Or is it geared towards casino/sportsbook operators only?

Does anyone think that this could lead to reputable online gaming sites turning away US customers?

 

[lottethedog]

many reputable sites already do i.e. ladbrokes etc

 

[Linus]

The folks who run internet gambling sites know perfectly well their business is not legal in the US. They may not share that info with the affiliates, but I'm sure their own lawyers have explained it to them before now.

 

[Simmo!]

No doubt about "headline of the day" yesterday. After Carruthers was arrested in Dallas:

"Texas Hold 'Em"

(New York Times)

 

[Vesuvio]

No doubt about "headline of the day" yesterday. After Carruthers was arrested in Dallas:

"Texas Hold 'Em"

(New York Times)

Don't know who got there first, but the current issue of The Economist has the same headline - and an article very much against the US government position, as you'd expect.

 

[Casinomeister]

Admin Note:

There are a number of very good articles in this week's news section concerning this/these issues:
https://www.casinomeister.com/static/news/july2006.html

 

[jetset]

The story, and its many offshoots and sidebars is developing at a rate of knots and has certainly captured the attention of the mainstream press.

We should be hearing shortly how Carruthers fared in his bail hearing today.

 

[cipher]

The story, and its many offshoots and sidebars is developing at a rate of knots and has certainly captured the attention of the mainstream press.

We should be hearing shortly how Carruthers fared in his bail hearing today.

Hi Jet:

Evans is sharp and you can expect things to get very interesting before long.

Have a good one.

 

[jetset]

I've just seen a similar report - I wouldn't think more jail time will be sitting well with Carruthers.

This was at the instigation of the defence, according to my report. I wonder what's going on?