<TABLE cellSpacing=0 cellPadding=0 width="98%" border=0><TBODY><TR><TD vAlign=top align=left>TOW News </TD></TR><TR><TH vAlign=top align=left><!-- Article Title / Date -->7/17/2006
BETonSPORTS CEO Detention unrelated to online gambling ban
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Breaking news of BETonSPORTS plc CEO David Carruthers's detention in Miami travelled lighting fast this morning, shocking the entire gaming industry and negatively affecting gaming stocks on the UK Stock Exchange. TheOnlinewire.com Costa Rica and U.S. sources report that Carruthers' detention is unlikely related to the online gambling ban (HR 4411) approved by the House last week but is more likely related to the federal investigation on BETonSPORTS's former owner Gary Kaplan.
It was known within the industry that Gary Kaplan was under federal investigation for his actions while at the helm of BETonSPORTS before the company went public in 2004. Sources report that federal authorities want to clearly identify possible criminal activities directly related to credit business ran by BETonSPORTS at the time Kaplan was at the helm of the company.
According to the same sources Carruthers' detention is related to the mentioned federal investigation. Investigators believe Carruthers might be in possess of information that could lead to Kaplan's indictment.
Gary Kaplan is rumored to be the real main man behind Igotsportsbook.com, a sportsbook established last year after Kaplan sold his remaining shares in BETonSPORTS.
Other U.S. sources report that Carruthers' detention may also be related to the violation of the Wire Act. While placing bets on the internet is still in a legal limbo and its not to be considered illegal yet, placing and accepting bets via phone is. In this respect the move to detain Carruthers could be seen as the strongest statement ever made against the gaming industry by the DoJ. The vast majority of sportsbooks accept wagers over the phone, hence violating an existing law, the Wire Act of 1961.
Whichever reason led federal authorities to detain Carruthers, the entire gaming industry is shocked by the news. The first outcome of this situation will likely be that other high profile sportsbooks owners and CEOs will adopt a much lower profile and eventually avoid travelling to the United States or transit on U.S. soil in the near future.
The situation also raises question marks on the opportunity to maintain scheduled events like the Bodog Marketing Conference. Developments on Mr. Carruthers detention are expected to become available to the public later today or in the early hours of tomorrow.
</TD></TR></TBODY></TABLE></TD></TR></TBODY></TABLE>http://www.theonlinewire.com/articleView.aspx?ID=1095
BETonSPORTS CEO Detention unrelated to online gambling ban
</TH></TR><TR><TD vAlign=top align=left><!-- Article Contents--><TABLE cellSpacing=0 cellPadding=5 width="100%" border=0><TBODY><TR><TD vAlign=top align=left><!-- Article Content -->
It was known within the industry that Gary Kaplan was under federal investigation for his actions while at the helm of BETonSPORTS before the company went public in 2004. Sources report that federal authorities want to clearly identify possible criminal activities directly related to credit business ran by BETonSPORTS at the time Kaplan was at the helm of the company.
According to the same sources Carruthers' detention is related to the mentioned federal investigation. Investigators believe Carruthers might be in possess of information that could lead to Kaplan's indictment.
Gary Kaplan is rumored to be the real main man behind Igotsportsbook.com, a sportsbook established last year after Kaplan sold his remaining shares in BETonSPORTS.
Other U.S. sources report that Carruthers' detention may also be related to the violation of the Wire Act. While placing bets on the internet is still in a legal limbo and its not to be considered illegal yet, placing and accepting bets via phone is. In this respect the move to detain Carruthers could be seen as the strongest statement ever made against the gaming industry by the DoJ. The vast majority of sportsbooks accept wagers over the phone, hence violating an existing law, the Wire Act of 1961.
Whichever reason led federal authorities to detain Carruthers, the entire gaming industry is shocked by the news. The first outcome of this situation will likely be that other high profile sportsbooks owners and CEOs will adopt a much lower profile and eventually avoid travelling to the United States or transit on U.S. soil in the near future.
The situation also raises question marks on the opportunity to maintain scheduled events like the Bodog Marketing Conference. Developments on Mr. Carruthers detention are expected to become available to the public later today or in the early hours of tomorrow.
</TD></TR></TBODY></TABLE></TD></TR></TBODY></TABLE>http://www.theonlinewire.com/articleView.aspx?ID=1095