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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
internet gambling does not allow the government to take their cut and is therefore in direct competition with them. Expect many more such crackdowns soon.
The government gets a healthy cut from the earnings in Las Vegas and Atlantic City. Politicians get hefty contributions due to the earnings from Native American casinos. And lotteries like Powerball are the government's own game.
So it's no wonder that online gambling sites lose, and will continue to lose in court. You've got to pony up to the bosses if you want to work in this town. (Preferably, both Democrats and Republicans.)
Before I jump to conclusions, my question is this: Are they really guilty of fraud and racketeering (very serious crimes that should be severely punished), or is this just an excuse to try to stop online gambling? I would be interested in seeing and hearing the evidence that gets presented before making up my mind.
Of course, both sides are going to claim what will support their viewpoint.
On the one hand, the DoJ has been itching for any excuse to go after these folks for a long time, which doesn't help the perception of them. If they had remained legally neutral to the matter and just stuck to what the law says, I sure would be more comfortable that they actually have our best interest at heart and that they're not just pandering to right-wing nutcases.
On the other, the online gambling industry is one that is notoriously rife with fraud, and it's entirely possible that these guys are scum that have been doing what they're accused of or worse. For the sake of their industry, I hope that they have realized the scrutiny that they've been under and have made very diligent efforts to stay clean and legitimate and can prove so in court. Otherwise, these two may very well have doomed their entire industry, even the players that are 100% honest and that just want to provide an entertainment service.
I think that the most telling sign of what the truth is is whether the DoJ starts chasing down all online gambling houses for "fraud" and "racketeering." At any rate, it will be interesting to see how it all turns out.
Right now, there is no such thing as legal online gambling in the US. Because of that, all online gambling businesses are breaking the law. This particular case might be cut and dry, but the larger issue of our rights online can still be debated.
I think gambling is a tax on people who are bad at math, and should be 100% legal.
Man, you really need that seminar!
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.
"Illegal commercial gambling across state and international borders is a crime," said U.S Attorney Catherine Hanaway of the Eastern District of Missouri in a press release. "Misuse of the Internet to violate the law can ultimately only serve to harm legitimate businesses.
I'm from Missouri, and I know who those legitimate businesses are. Harrahs, Ameristar, The Casino Queen, and The President. And I bet (pardon the pun) that I know who they donate to. I'm looking at you, Catherine Hanaway.
Your sig(k) has been stolen. There is a puff of smoke!
It is a legitimate business. At least, it is here in the UK, and in most other countries.
The US makes laws that criminalize activities by non-US citizens that take place entirely outside the US. How else could David Carruthers have been arrested, when his business is based in Costa Rica?
A lot of things.
It rachets up the pressure on the Senate to pass a bill outlawing internet gambling in the United States of America.
It suggests to the Average-internet-gambling-Joe that 'he might be next'
It fscks up the stock prices of these online gambling companies.
As always, if you've got the time, hit up Google News
http://news.google.com/news?q=gambling+arrest
Some random snippets
"The Justice Department is seeking the forfeiture of $4.5 billion, cars and computers from the defendants, including Betonsports PLC and three other companies."
"Several of the defendants live outside the United States, which will make them hard to catch, said U.S. Attorney Catherine Hanaway in St. Louis."
"Last week, the House passed a bill that would make it illegal for American banks and credit card issuers to make payments to online gambling sites. The bill's fate in the Senate is uncertain, in part because of exemptions granted for horse racing and state lotteries."
[Fuck Beta]
o0t!
A lot of the comments revolve around the obligatory "here goes the government again" comments.
Perhaps I'm a bit naive, but it seems obvious to me that jumping on some website hosted in some third-world country and giving them my credit card so I can play poker through some system controlled by the website against God-knows-who just seems like an invitation to get ripped off.
I'm just not surprised in the least bit to hear some online gambling site shut down or involved parties being arrested for fraud or whatever. Frankly, I'm surprised it's taken this long for some government somewhere to actually look at these sites and realize that there is no way at all to stop the owners thereof from ripping off customers coming and going (aside from the massive amounts of money they make simply from the actual gambling itself).
I've got one of the smallest lists of "things I love that our government has its fingers in", but you should also realize that along with the money the government collects around legalized gambling in the US, they also regulate it massivly and crack down fast and hard on places that are ripping people off (above the fact that gambling itself is a ripoff).
- dm- dm - The two most common elements in the universe are Hydrogen and stupidity.
Control. That's what it's all about.
--Chag