Tuesday, July 18, 2006

Escalation in Attack on Internet Gambling

Federal authorities have arrested David Carruthers, the chief executive of BetOnSports, a prominent Internet gambling company that is publicly traded in Britain. Carruthers was nabbed during a layover at Dallas-Fort Worth International Airport. He was on his way from Britain to Costa Rica. Carruthers has been charged with racketeering conspiracy for participating in an illegal gambling enterprise. A temporary restraining was issued preventing BetOnSports from accepting wagers from customers in the U.S. Under terms of the order, all money held in the accounts of American customers must be returned. BetOnSports, which reportedly took in between 70%-80% of its wagers from customers in the U.S., saw its shares tumble 16.5% before the company requested that trading be suspended. The timing of the arrest is intriguing because a bill outlawing all online gambling with the exception of horse racing and state lotteries is headed for the Senate. If you want to contact your Senator, here is a link that provides web forms to do so.

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