BetOnSports Refunding Options Limited
13 August 2006
Gamblers hoping to get money back after betting Web site shuts down
By ADAM GOLDMA, AP Business Writer
Since BetOnSports PLC started accepting wagers online, gamblers played the odds on plenty of sporting events. But they also gambled on whether U.S. prosecutors would one day target the Costa Rica-based company for possibly violating federal law.
Now, gamblers are wondering if they’ll ever get their money back after a judge’s temporary restraining order forced BetOnSports to disable its Web site, blocking access to player accounts.
“I just can’t get past how much I could lose,” a New Jersey bettor named Eric wrote recently on a gambling blog.
BetOnSports faces a 22-count indictment on fraud and racketeering charges in the U.S. District Court in St. Louis. David Carruthers, the firm’s former chief executive, remains in jail in the United States after being arrested while changing planes in Texas.
Prosecutors are seeking the forfeiture of $4.5 billion, plus several cars, recreational vehicles and computers from Carruthers and 10 other people associated with the gambling operation.
U.S. Attorney Catherine Hanaway told The Associated Press that last month’s federal restraining order requires BetOnSports to return any money that American customers have tied up with the site.
The order, which expires Monday but could be extended, also prevents BetOnSports from taking U.S.-based bets.
But Hanaway said if BetOnSports doesn’t return the money, the U.S. government has every right to seize it.
Hanaway contends the bets were placed illegally, violating the 1961 federal Wire Act. That means the government could take the money to settle legal claims in the same way it takes money from drug cartels, Hanaway said.
“In all kinds of crimes we forfeit money that someone has paid,” she said.
An executive with BetOnSports says the company is trying to return deposits and pending wagers before that scenario plays out.
“Customers will get their money,” the executive said, who spoke on the condition of anonymity because he was not authorized to speak publicly about the case.
But the executive said that because of the judge’s order on July 17, some payment processors, or e-wallets as they’re known, have stopped doing business with BetOnSports. The executive said BetOnSports has no way to transfer the bulk of the pending wagers or deposits to gamblers.
“We are in a difficult position,” the executive said.
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27 June 2006New state online gambling law raises doubts
Monday, June 26, 2006 Seattle Post-Intelligencer / seattlepi.com New state online gambling law raises doubts Some legal experts say it’s too broad to hold up in court By BLYTHE LAWRENCE AND TRACY JOHNSON P-I REPORTERS Weeks after a new state law about online gambling took effect, some legal experts are questioning whether it would hold up in court. The new law echoes a federal law that already makes Internet gambling illegal and upped the crime to a felony.Read full article
08 March 2012Online Gambling Middleman Pleads Guilty
As a result of the investigation of the Department of Justice that shut down the three largest U.S. facing online poker sites, a Canadian citizen has now plead guilty to conspiracy charges.In a plea to the U.S. District Court in Manhattan, Ryan Lang said he was the middleman between online poker companies and the brokers who tricked U.S. banks into processing money for online gambling. Land admitted he helped circumvent U.S. laws from 2007 to the middle of 2010.Read full article