Carruthers was chief executive of BetOnSports.com when he was
arrested in Dallas on 16th July on his way from the UK to the
company's base in Costa Rica. He has been in jail since then
awaiting trial. Following his arrest, BetOnSports sacked him and
agreed to stop taking bets from US citizens.
Carruthers is accused with several other BetOnSports employees
with violating US laws which outlaw telephone and internet
gambling. The government's case claims that the firm fraudulently
took billions of dollars in bets and did not pay taxes on the
wagers.
BetOnSports was founded by Gary Kaplan who has not been arrested
and who lives in Costa Rica. A warrant for his arrest has been
issued.
In a related case another judge extended a temporary restraining
order preventing BetOnSports from doing business in the US.
BetOnSports did not send a legal team to represent it in the US.
Prosecutors are seeking to have the court extend the ban on
BetOnSports's business indefinitely.
US gambling laws are complicated and far from clear. Most
prosecutions come under a 1963 Wire Act which prohibits inter-state
telephone betting. A law from the 1970s specifically legalises
inter-state horse race betting, though prosecutors sometimes still
take cases involving horse racing.
A new law which seeks to clear up the situation is passing
through the two legislative houses of the US but its passing into
law is far from certain.
Carruthers is seeking $1 million bail, which has not yet been
approved. If permitted, the bail conditions are said to be likely
to include the demand that he remain in the St Louis area and wear
an electronic tag.
The US government is seeking to take possession of $4.5 billion
worth of assets, including cars and computers, from the defendants.
Other defendants include Neil Kaplan and Lori Kaplan Multz,
relatives of company founder Gary.
BetOnSports has sought to distance itself from the scandal by
sacking Carruthers and emphasising to the London Stock Exchange,
where its shares are listed, that Gary Kaplan has no management
role in the company any more. Kaplan is a consultant to the firm,
it said.
