US GAMBLING BILL IN SPOTLIGHT AFTER INDUSTRY ARRESTS

18 July 2006

Newspaper

Reuters
Tue Jul 18, 2006 5:11pm ET16
By Julie Vorman

WASHINGTON, July 18 (Reuters) – The indictment of BETonSPORTS Plc (BSS.L: Quote, Profile, Research) executives for racketeering should add momentum to U.S. legislation that aims to ban broader types of Internet gambling, two Republican backers said on Tuesday.

The U.S. House of Representatives overwhelmingly approved a bill earlier this month that would prohibit most forms of Internet gambling and make it illegal for banks and credit card companies to make payments to online gambling sites.

A similar bill is pending in the U.S. Senate, where supporters are scrambling to win passage before an August recess.

The $12 billion-a-year online gambling industry was shaken this week after a grand jury in St. Louis indicted BETonSPORTS Plc (BSS.L: Quote, Profile, Research) and some of its executives.

Chief Executive David Carruthers was arrested while changing airplanes at the Dallas-Fort Worth Airport and three other men linked to the company were arrested in Florida. An arrest warrant was issued for BETonSPORTS founder Gary Kaplan, who lives in Costa Rica.

The high-profile case is being prosecuted by a newly appointed U.S. Attorney in St. Louis, Catherine Hanaway, and accuses Kaplan of taking bets from undercover federal agents. The government said in court documents it could seek forfeiture of more than $4.5 billion and other assets from the company and its executives.

READ THE COMPLETE STORY HERE – REUTERS

Related News

  • 26 May 2006

    MGM, Harrah's Press Congress for Piece of Online Gaming Action

    May 22 (Bloomberg) — MGM Mirage, Harrah’s Entertainment Inc. and other U.S. casino operators are increasing pressure on Congress to consider legalizing online gambling — at the same time lawmakers are seeking to tighten criminal penalties for it. The companies are trying to take advantage of a congressional backlash against gambling triggered by the Jack Abramoff scandal, involving his lobbying on behalf of Indian casinos.

    Read full article
  • 27 May 2006

    MGM, Harrah's Press Congress for Piece of Online Gaming Action

    May 22 (Bloomberg) — MGM Mirage, Harrah’s Entertainment Inc. and other U.S. casino operators are increasing pressure on Congress to consider legalizing online gambling — at the same time lawmakers are seeking to tighten criminal penalties for it. The companies are trying to take advantage of a congressional backlash against gambling triggered by the Jack Abramoff scandal, involving his lobbying on behalf of Indian casinos.

    Read full article
  • 29 May 2006

    U.S. PUSH TO ALLOW ONLINE GAMBLING

    By William Roberts Bloomberg News MONDAY, MAY 22, 2006 WASHINGTON MGM Mirage, Harrah’s Entertainment and other U.S. casino operators are increasing pressure on Congress to consider legalizing online gambling – at the same time that lawmakers are seeking to tighten criminal penalties for it. The companies are trying to take advantage of a congressional backlash against gambling set off by the Jack Abramoff scandal, involving his lobbying on behalf of Indian casinos.

    Read full article