In breaking news out of St. Louis, former BetOnSports CEO David Carruthers has pled guilty to “federal racketeering conspiracy charges,” according to the Associated Press. He faces up to 33 months in prison and sentencing is scheduled for October 2nd.
According to a statement released by iGamingNews on Wednesday, “Mr. Carruthers agreed to not appeal provided that the sentence doesn’t exceed 33 months, which is under the terms of the agreement, as well as to not engage in offshore gambling businesses during the time of supervised released or thereafter.” Carruthers also agreed to cooperate against BetOnSports founder Gary Kaplan and others still in custody.
Carruthers has been under house arrest since 2006 and even ran the St. Louis Marathon during his detention, posting a time of four hours, five minutes, and 27 seconds. He was originally detained in Texas while in transit from the United Kingdom to Costa Rica before being moved to St. Louis. According to the St. Louis Post Dispatch newspaper, despite believing that internet gambling and sports wagering may have been illegal in the United States under laws such as the Wire Act of 1961 and Unlawful Internet Gambling Enforcement Act (UIGEA), Carruthers “continued to advertise to U.S. customers that the company was ‘legal and licensed’ while ‘furtively or covertly’ collecting bets and paying out money owed to gamblers.”
Interactive Media Entertainment and Gaming Association (iMEGA) Chairman Joe Brennan speculated as to why Carruthers would finally plead guilty, ending the three year ordeal. He told Poker News Daily, “Carruthers is a citizen of the United Kingdom and isn’t a resident of the United States. He was a foreign national that had been detailed in transit. He went three years trying to make the best of a bad situation and wants to go home.”
In July of 2006, Carruthers was fired as CEO of BetOnSports. The company stated at the time, “Clearly, while he remains in the custody of the U.S. government, he is unable to perform his duties.” In August of that year, the company vacated the U.S. market entirely, two months prior to then-President George W. Bush signing the SAFE Port Act and its accompanying UIGEA rider into law. Brennan noted that while BetOnSports was navigating its future business plans, Carruthers was still held up in Missouri: “The U.S. Government won a war of attrition. He’s an older guy who hasn’t been home in three years. He was under house arrest with no trial.”
The admission of guilt comes on the heels of a plea bargain made by former Party Gaming Co-Founder Anurag Dikshit in a New York court room last December. Dikshit agreed to pay $300 million over three installments and faces up to two years in prison. However, his sentencing has been delayed until December of 2010. Comparing the two high profile internet gambling proceedings, Brennan explained, “Carruthers’ case is obviously more severe than Anurag’s, who is free to go wherever. It’s disappointing to see a guy who has been standing on his principles beaten down enough to forge a plea.”
Visiting BetOnSports.com from the United States yields the text, “This website does not accept wagers on sports or sporting events from persons in the United States. It is a violation of United States Law to transmit sports wagers or betting information to this website from the United States.”
We’ll have more for you on this breaking story has it develops right here on Poker News Daily.
