Reprinted from Caribbean Net News
caribbeannetnews.com

Antigua-based gaming company in talks with US to end criminal, civil actions

Wednesday, September 20, 2006

by: Andrew Harris and Benjamin Israel

USA (Bloomberg), ST LOUIS: Betonsports Plc., the Antigua-based sports book indicted by the Justice Department for illegal Internet gambling, is negotiating a possible settlement of pending criminal and civil actions, both sides said Tuesday.

St Louis lawyer Jeffrey Demerath asked US District Judge Carol Jackson to extend a July court order banning Betonsports from doing business in the US, while the parties negotiate.

Eleven people connected with the London-based company were indicted by a federal grand jury June 1 for promoting interstate gambling.

"What we're interested in is resolving this"' Demerath told Jackson at a hearing on Tuesday in St Louis federal court.
Extending the order would "allow us to negotiate and reach an appropriate resolution." Jackson granted the request, setting October 16 as the new expiration date. The ban would have expired Wednesday.

The 22-count indictment, unsealed July 17, charged Betonsports founder Gary Kaplan, now-former Chief Executive Officer David Carruthers and nine other people with racketeering and violating federal interstate gambling laws. In 2003, the company's Web site, Betonsports.com, had 100,000 active players who placed 33 million wagers worth more than $1.6 billion, the US said.

Carruthers, 48, was arrested in July as he changed planes at a Texas airport. He pleaded not guilty and is currently under house arrest in St Louis. Kaplan is still at large. Six other defendants have pleaded innocent.

"We're engaged in negotiations to resolve both the criminal and the civil," Assistant US Attorney Michael Fagan told Jackson on Tuesday. Representatives for both sides declined to comment on the status of the talks.

Trading of Betonsports stock in London was suspended July 18 at the company's request. The online betting firm ran its US Internet business from offices in Costa Rica and Antigua. Those offices have now been closed, company spokesman Kevin Smith said.

Betonsports has publicly said it would refund any client money it is holding. Smith called that situation, "a work in progress," which could take up to another month to complete. He also said he didn't know how much money is owed or how many customers are due refunds.

Peter Dicks, chairman of Sportingbet Plc., another British sports book, was arrested earlier this month on similar charges at New York's John F. Kennedy International Airport after a flight from London.

Sought by Louisiana authorities for illegal computer gambling, Dicks was freed on bail after being held for two days by New York authorities. He was allowed to leave the country and is due to appear in New York court again on September 28.

Dicks resigned as Sportingbet's chairman on September 14.

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