U.S. Court Order On BetonSports Extended
Published: Saturday, September 02, 2006 Online-Casinos.com
U.S. COURT ORDER ON BETONSPORTS EXTENDED
Prosecution asks for more time to assemble tax evasion case against gambling group
The U.S. court order restraining beleaguered online gambling group BetonSports.com from taking bets from US citizens is to remain in place for a further 30 days following an extension granted this week by U.S. District Court Judge Carol E Jackson.
This is the second extension of the original order, caused by procedural difficulties in serving notice to the London based company. Federal prosecutor Marty Woelfle told Jackson a process server in London expected to complete that task soon. Government prosecutors are also thought to need more time to prepare the case against the company, which includes allegations of a failure to pay taxes on $3.3 billion in wagers.
In July, U.S. Attorney Catherine Hanaway unveiled a 22-count indictment against BetOnSports in St. Louis, accusing the company of racketeering and fraud. Former Chief Executive David Carruthers remains under house arrest in the St. Louis area awaiting trial on the charges. Company founder and 15 percent shareholder Gary Kaplan remains at large but is being sought by federal authorities.
The order effectively terminates U.S. business for the group, a potentially disastrous blow as it is believed that up to 80 percent of the BoS revenues come from U.S. players. The order also requires BetonSports to return deposits to U.S. gamblers, something that it has not yet done that could entail millions of dollars flowing out of the company. Players do not yet know when their deposits will be returned, although some company employees have intimated it could take between 60 and 90 days.
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