BETONSPORTS CEO DAVID CARRUTHERS DETAINED IN THE U.S.
17 July 2006
News released earlier today reported BetonSports CEO David Carruthers was detained by US federal authorities while he was in the US changing flights on his trip from the UK to Costa Rica.
No statement has been released regarding the reason for the detention; in fact very little at all is known about the reasons behind the actions by the U.S. The company BetonSports has not made an official statement, just saying an announcement will be made when appropriate.
After news broke on Carruthers, trading on BetonSports and other companies like PartyGaming PLC traded down.
Canaccord advised its clients the move is more than likely politically motivated although the broker followed this up by saying it’s too early to say if this is a new strategy on the part of the US to intimidate or if the US Department of Justice was ‘flexing its muscle and trying to influence legislation’. The legislation referenced is the Goodlatte/Leach bill prohibiting gambling over the internet (excluding horseracing or government run programs such as lotteries) which recently passed the US House and is slated for presentation in the US Senate.
Mr. Carruthers has recently been seen on CBS EVENING NEWS and written articles like the one in the BALTIMORE SUN on regulating and taxing online gambling. It’s possible his stand on internet gambling has made him a target of the Department of Justice.
18 July 2006IS THIS THE START OF A CRUSADE AGAINST INTERNET GAMBLING?
“The people who are pushing this ban in Congress … try to argue these sites prey on children, which is totally ridiculous,” “If your kid has access to your checking account or credit card and is making transfers to off-shore accounts across the world, Internet gambling is the least of your worries.Read full article
07 September 2006ONLINE GAMBLING STOCKS DIVE - AGAIN - AS US DOJ HOLDS GAMING EXECUTIVE - AGAIN.
REUTERS UK Thu Sep 7, 2006 2:05 PM BST162 By Pete Harrison LONDON (Reuters) – The United States detained a second Internet gaming executive on Thursday, adding to fears it is cracking down on the lucrative industry and sparking share price falls that wiped over $1.5 billion (800 million pounds) off the market value of the sector. Online bookmaker Sportingbet said its chairman, Peter Dicks, had been detained by U.S.Read full article
17 December 2010Probation For BetOnSports, Norman Steinberg
Norman Steinberg, co-owner of Millenium Group, a subsidiary of BetOnSports, which was shut down by federal prosecutors in 2006, came to the U.S. this week and was sentenced to 3 years’ probation which is to be served from his home on Costa Rica, a $10,000 fine, no restitution and is unrestricted to travel anywhere in the world. This is a far cry from what the other people who were related with BetonSports got from the U.S. prosecution.Read full article