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Online Casino CEO Goes to Prison
ST. LOUIS, MISSOURI --
David Carruthers, the chief executive of Internet gambling site BetonSports, was ordered by a US judge to serve just under three years for his part in the online casino's operations in the US. Federal authorities say that, at its peak, BetonSports was grossing $1.25 billion and did sports gambling business with tens of thousands of US residents.
While online gambling has not been made illegal by any federal law, the US Department of Justice still considers it illegal, at least for foreign operators. What is not in dispute is that online sports betting involving US customers is illegal, as courts have said the Wire Act specifically refers to sports betting, and the Professional and Amateur Sports Protection Act makes all sports wagering, with exceptions like for Nevada sports books, illegal.
US District Court Judge Carol E. Jackson told Carruthers he would have to do another thirty-three months behind bars, even though he has already served over three years under house arrest while awaiting trial. Carruthers had accepted a plea bargain, declaring himself guilty of one count of racketeering conspiracy.
Carruthers had thought the deal might earn him a more lenient sentence, but Jackson did not believe Carruthers' claims that he only later came to realize he was breaking the law.
Carruthers, born in the UK, said his country allows all sorts of legal gambling, and he did not believe that a company with operations on the London Stock Exchange could be illegal.
BetonSports founder Gary Kaplan accepted a plea bargain of his own, receiving a fifty-one month sentence in November.
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