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Internet Gambling CEO Arrested by FBI
tightpoker writes to mention the news that several key individuals associated with online gambling site BetonSports have been indicted in a Missouri courtroom. Founder Stephen Kaplan, CEO David Carruthers, 9 other people and four corporations have been charged with crimes ranging from racketeering to fraud. The Sunday Time reports on the story as well, addressing fears this may be a prelude to a crackdown on all online gambling by U.S. law enforcement. From the article: "Nigel Parson, leisure analyst at Williams de Broë, said the move would 'throw online gambling stocks into a spin,' adding: 'David Carruthers is a prominent advocate of online gambling. The fear that this is an escalation of the anti-lobby will trouble markets.' Greg Harris, an analyst at Cannacord, said: 'It is too early to say if this is part of a broader strategy on prevention of internet gambling in the U.S. or if it is the Department of Justice flexing their muscles and trying to influence legislation.'"
BBC article here
Slashdot Burying Stories About Slashdot Media Owned
RTFA (and the moderator that marked your posting insightful should do the same).
Carruthers was arrested by FBI agents in Dallas on Sunday afternoon as he was returning to his home in Costa Rica from a trip to the United Kingdom.
Searching google for "bible gambling", the first hit gives us this:
Question: "What does the Bible say about gambling? Is gambling a sin?"
Answer: Gambling can be defined as "risking money in an attempt to multiply the money on something that is against the odds." The Bible does not specifically condemn gambling, betting, or the lottery. The Bible does warn us, however, to stay away from the love of money (1 Timothy 6:10; Hebrews 13:5). Scripture also encourages us to stay away from attempts to "get rich quick" (Proverbs 13:11; 23:5; Ecclesiastes 5:10). Gambling most definitely is focused on the love of money and undeniably tempts people with the promise of quick and easy riches.
Oh no... it's the future.
Apearently there IS NO LAW against on-line gambling possably there are some state laws but the FBI does not enforce state laws. These guys could have been sell shoes buti f they cheated customers and didn't pay taxes they be shut down just the same --- well likey not the FBI does not waste time with small scale crimes and I doubt they'd be selling $3 billion in shoes
Even the Porn industry is mostly above board and gets the required permits, pays resonable wadges, takes out payroll and income tax withholdings and keeps books and pays taxes. on-line gambling could do the same but apearently these guys didn't. This is NOT a big deal.
...for all connecting passengers. Many (most?) countries, such as France, don't require immigration if you are just connecting. Makes sense, you would think, as for countries that don't require immigation it helps promote their airports as hubs with all the attendant economic benefits. Much faster transfers, no visa hassles, etc. I guess the US is a big enough landmass with few alternative hubs nearby.
This fact is how Canadian Mahar Arar was extraordinarily renditioned by the US to Syria coming home to Canada from holiday in Tunisia - he had the misfortune to connect in New York.
Most of the posts I have read seem to imply that this applies to all casino games, including poker, blackjack, etc. From the research I have done, current federal law only prohibits betting on sporting events. This is part of the Wire act, of which the applicable portion is: "Whoever being engaged in the business of betting or wagering knowingly uses a wire communication facility for the transmission in interstate or foreign commerce of bets or wagers or information assisting in the placing of bets or wagers on any sporting event or contest, or for the transmission of a wire communication which entitles the recipient to receive money or credit as a result of bets or wagers, or for information assisting in the placing of bets or wagers, shall be fined under this title or imprisoned not more than two years, or both."
l /
In February 2001, Judge Stanwood Duval of the US District Court in New Orleans ruled "'in plain language' [the Wire Act] does not prohibit Internet gambling 'on a game of chance.'"
On November 21, 2002, the US Fifth Circuit Federal Appeals Court upheld Duval's ruling, stating: "The district court concluded that the Wire Act concerns gambling on sporting events or contests... We agree with the district court's statutory interpretation, its reading of the relevant case law, its summary of the relevant legislative history, and its conclusion."
The Appeals Court further states: "Because we find neither the Wire Act nor the mail and wire fraud statutes may serve as predicates here, we need not consider the other federal statutes identified by the Plaintiffs... As the district court correctly explained, these sections may not serve as predicates here because the Defendants did not violate any applicable federal or state law."
The Appeals Court specifically cites Duval's statement: "[A] plain reading of the statutory language [of the Wire Act] clearly requires that the object of the gambling be a sporting event or contest." This is very explicit language. You would have to jump through a lot of mental hoops to consider the playing of online poker to be "a sporting event".
Finally, in November 2004, the Caribbean island nation of Antigua and Barbuda won a World Trade Organization ruling that United States legislation criminalizing online betting violates global laws. In April 2005, the WTO Appellate Body affirmed the principal conclusions involved. What effect this will have on the U.S. morality police has yet to be seen, probably none, but at least it gives the online poker players and gamblers some glimpse of hope.
Personally, I don't really care about sports betting and related things being illegal, as that isn't my area of interest. But I do see a long slippery slope ahead if things like this continue.
Source: http://www.playwinningpoker.com/online/poker/lega
David is not, was not, never has been a US Citizen. He is a UK Citizen. Others named in the Indictment are US citizens