Internet Gambling CEO Arrested by FBI 298
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.'"
Oy ve... (Score:4, Interesting)
My question... (Score:5, Interesting)
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.
Why was he in the US? (Score:1, Interesting)
Re:It's only a matter of time (Score:2, Interesting)
Completely off topic, but out of curiosity...
Where, in the bible, does it say anything about the morality or immorality of gambling? It speaks out against adultery, incest, rape (especially where it says the rapist has to marry the girl), but I must have missed the meeting where they added anything about gambling.
Stupid Logic (Score:2, Interesting)
No, sorry - revenue has nothing to do with this. It's "What about the children" syndrome running rampant again.
Re:It's only a matter of time (Score:2, Interesting)
Suddenly, "magic golden plates" don't seem so crazy, do they?
Yeah. right. (Score:5, Interesting)
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.
The problem is this... (Score:3, Interesting)
Then they run out of those.
Next they go after big fish in the online gambling market who are operating outside the US.
Other governments tell US to go DIAF
US sees the only other way to address problems as going after the gamblers instead.
US uses this as a reason to further OK tracking all internet traffic.
We know where that goes.
There's no good outcome from this path. But greed will drive politicians to it.
Re:Of course they lost (Score:5, Interesting)
There are numerous "cashless" casinos in my area. There was a surge of them. You bought a monthly membership, vouchers, however each one chose to set up, and you would compete for material prizes such as televisions, event tickets, and so on. Most of these casinos also donated 10% of their monthly earnings to charities.
The problem came about first when the local government realized they weren't getting anything special from these gambling halls, and when a small, small, small yet vocal group protested them, saying how their significant others were throwing away large amounts of money to be part of these casinos. This group launched a campaign and instead of seeking help for their loved ones, just wanted the places shut down. Not getting a lot of incentive from the casinos themselves, pressure was put on. I believe only two of the "game rooms" are still in business now.
Re:"Harm legitimate business"? (Score:5, Interesting)
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?
Re:YRO (Score:2, Interesting)
how will this affect the "legal" online gambling (Score:1, Interesting)
http://www.freeplayaway.com/ [freeplayaway.com]
http://www.ingenio-quebec.com/ingeniointernationa
on the freeplayaway you can see the sites and play some games.
Re:Oy ve... (Score:5, Interesting)
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 [google.com]
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."
Very sad (Score:2, Interesting)
Re:It's only a matter of time (Score:3, Interesting)
Re:My question... (Score:3, Interesting)
(There's a whole big deal going on between the US and Britain with respect to extradition, having to do with levels of proof, but I'll assume for the moment that they've got some proof on this guy. It's a separate argument.)
I've never been exactly sure what "racketeering" is. It's kind of the US-white collar equivalent of what the Soviets used to call "hooliganism": a generic crime applied to people doing scuzzy stuff in bulk where you don't want to (or can't) pin any individual crimes on them.
The charge makes me nervous, because its vagueness makes it subject to abuse. But tax evasion is a crime I an understand. There's also the fraud charges, which is a more specific crime but I don't see specific allegations in the article. Presumably they're in the indictment. It lets them avoid having to test their dubious bans against internet gambling directly.
Wow... (Score:4, Interesting)
It's not the first time something like this has happened though. I seem to recall the FBI arresting a bunch of USAians who'd set up offshore gambling sites a while back. And if you ever had anything to do with helping to break copyright protection encryption you'd best steer clear of this country. If you've ever worked on an OSS encryption product you might want to avoid the USA, too. Never know when our guys might get a bug up their ass and arrest you as an international arms distributor or something like that.
As for the US Citizens, you ARE registering to vote and voting against the incumbent, right? Chances are the guy you're voting against is retarded. Chances are the guy you're voting for is too, but it'll be a few years before he establishes the ties to do much damage and by then you can help vote him out again.