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Internet Gambling CEO Arrested

Yet another sign that U.S. prosecutors are cracking down on illegal Internet gambling: David Carruthers, the chief executive of BetOnSports, a big offshore Internet gambling company, was arrested Sunday in Dallas. A New York Times report says Carruthers was charged with racketeering conspiracy for participating in an illegal gambling enterprise in a hearing at a Federal District Court in Fort Worth. The court granted the government's request for a temporary restraining order that prevents BetOnSports from accepting bets from Americans, and requiring it to return any money held in accounts in their name. The government also filed charges against 10 other people involved in BetOnSports, as well as three Florida marketing companies that prosecutors say promoted the site and illegal gambling. Internet gambling is legal in many other countries, but it is illegal in the United States. Americans can easily access and place wagers at offshore gambling sites that offer casino-like card games and sports betting. The fact these operations are legal in those countries "does not entitle them to do business in the United States," said Catherine L. Hanaway, the United States attorney for the Eastern District of Missouri, which brought the indictment.

Read the whole story at The New York Times »

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