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April 11, 2009 Online Casino News:
Online Casino Takes Plea
Another online casino head has fallen to
the United States Government. David
Carruthers, CEO of BetOnSports has
agreed to take a guilty plea as well as
work with the government to prosecute
his old boss. Carruthers has plead
guilty to US racketeering charges, as
part of a deal that he made with
prosecutors – and in exchange they will
lessen the charges they have brought
against him.
US prosecutors are going to recommend
that Carruthers get a maximum prison
sentence of less than three years in
return for his testimony against
BetOnSports founder Gary Kaplan and six
other defendants. The online casino case
had brought in a lot of attention to the
industry because there were so many
other online casinos that were holding
out and maintaining their innocence.
Now, it looks as though they are
starting to fold one by one.
US District Judge Carol Jackson heard
his plea early this morning in St.
Louis. Carruthers stated that he now
realizes that online casino gambling is
illegal, but that when he started
working for Kaplan that he thought that
it wasn’t. He also said that although
the company maintained that online
casino gambling was legal, they were
actually taking and sending out money to
their clients through “furtive and
covert methods.”
Being under house arrest since July of
2006 had to have an impact on his
decision to plead guilty, as by doing so
he saw his freedom starting to come to
light. He realized that he needed to
plead guilty to the online casino
charges because if he hadn’t he could
have been looking at more than twenty
years in prison.
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