Yesterday's BetOnSports Indictments Remind Me of March, 1998July 18, 2006
by Ken Weitzner (The Shrink)
For those new to the realm of online sports betting, as well as to those who remember the pioneer days, I see a remarkable parallel between what happened more than 8 years ago and what is happening today...
In March of 1998, the onslaught against online gambling by the FBI began with the purge of 21 different names. Thirteen of them returned to the United States and worked out plea bargains. None of them served any time, as they settled for some rather small fines. Seven never returned. And one man alone, namely Jay Cohen, decided to fight for his freedom.
I was at Jay's trial and I can tell you firsthand that in my opinion, the deck was stacked against him when the Judge read his opening remarks and then again, after he read closing instructions to the Jury that made my hair stand up. The jury had no choice but to find Jay guilty.
Once again, we have a similar scenario beginning, but this time I believe it may be worse. Thus far, 11 people and 4 corporations have been indicted on charges of racketeering, conspiracy and fraud.
Only last week, two bills were passed in the House of Representatives making internet gambling illegal and cutting off the ability to send money to them by holding banks and credit card companies accountable for policing this activity. The timing of this most recent assault on internet gambling is hardly a coincidence. It was deliberately implemented late last night.
David Carruthers, who isn't even an American citizen was detained in Miami on his way back from England to Costa Rica. David Carruthers was very vocal lately about the United States position against internet gambling. He had been spending a lot of time in Washington talking to political figures and he appeared in the media. David urged for the United States to look into regulation rather than prohibition. Many would argue that he has been the most notable critic of the Goodlatte/Leach anti-gambling bill, which only need pass the Senate this year to be put into law.
In March of 1998 and much earlier, Jay Cohen was "THE VOICE OF REASON" for internet gambling entrepreneurs. He graduated from UC Berkeley and had held a very lucrative position trading options on the Pacific stock exchange just a wee bit earlier in his life.
David Carruthers was catching up with his children, studying at UK universities, during a brief visit to London last week for BetonSports' annual meeting before being arrested last night.
Aside from being a bit shell shocked at this moment, I can only speculate as to what all the ramifications will be. But whatever happens, I do know that it is impossible to beat the US government when the deck of cards is stacked against you.
If you don't believe me, just ask Jay Cohen.
THE SHRINK
by Ken Weitzner (The Shrink)
For those new to the realm of online sports betting, as well as to those who remember the pioneer days, I see a remarkable parallel between what happened more than 8 years ago and what is happening today...
In March of 1998, the onslaught against online gambling by the FBI began with the purge of 21 different names. Thirteen of them returned to the United States and worked out plea bargains. None of them served any time, as they settled for some rather small fines. Seven never returned. And one man alone, namely Jay Cohen, decided to fight for his freedom.
I was at Jay's trial and I can tell you firsthand that in my opinion, the deck was stacked against him when the Judge read his opening remarks and then again, after he read closing instructions to the Jury that made my hair stand up. The jury had no choice but to find Jay guilty.
Once again, we have a similar scenario beginning, but this time I believe it may be worse. Thus far, 11 people and 4 corporations have been indicted on charges of racketeering, conspiracy and fraud.
Only last week, two bills were passed in the House of Representatives making internet gambling illegal and cutting off the ability to send money to them by holding banks and credit card companies accountable for policing this activity. The timing of this most recent assault on internet gambling is hardly a coincidence. It was deliberately implemented late last night.
David Carruthers, who isn't even an American citizen was detained in Miami on his way back from England to Costa Rica. David Carruthers was very vocal lately about the United States position against internet gambling. He had been spending a lot of time in Washington talking to political figures and he appeared in the media. David urged for the United States to look into regulation rather than prohibition. Many would argue that he has been the most notable critic of the Goodlatte/Leach anti-gambling bill, which only need pass the Senate this year to be put into law.
In March of 1998 and much earlier, Jay Cohen was "THE VOICE OF REASON" for internet gambling entrepreneurs. He graduated from UC Berkeley and had held a very lucrative position trading options on the Pacific stock exchange just a wee bit earlier in his life.
David Carruthers was catching up with his children, studying at UK universities, during a brief visit to London last week for BetonSports' annual meeting before being arrested last night.
Aside from being a bit shell shocked at this moment, I can only speculate as to what all the ramifications will be. But whatever happens, I do know that it is impossible to beat the US government when the deck of cards is stacked against you.
If you don't believe me, just ask Jay Cohen.
THE SHRINK
