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He was arrested three years ago by FBI agents for running a company that let US players wager on sports over the internet. Carruthers was charged with racketeering and conspiracy.
Telegraph: Bet on Sports Online executive jailed
David Carruthers, the former head of an online sportsbook company called Bet on Sports Online, has plead guilty to charges of racketeering and conspiracy, and has been sentenced to 33 months in jail.
The charges are connected to the company’s operations in the US, where online gambling is restricted. The fiasco follows the government’s crackdown on offshore online gambling sites that illegally accept wagers from American players. Bet on Sports Online saw profits of $3.5bn (£2.2bn) between 2002 and 2004, and most of that revenue came from players in the US.
Carruthers has been living under house arrest in a hotel in Missouri for the last three years, ever since he was detained by the FBI at Dallas Airport while on his way to Costa Rica, where Bet on Sports Online is headquartered.
Assistant US Attorney Steven Holtshouser said: “Previously, executives, owners and investors believed that they were immune from the reach of US law enforcement. Both the conviction of, and sentence handed down against Mr Carruthers should send a message to any foreign business conducting illegal activities in the United States, that geography does not render it untouchable.”
Last year, founder of Bet on Sports Online, Gary Kaplan was sentenced to more than four years in prison after agreeing to forfeit more than £43m.
A SCOTS gambling executive has been sentenced to almost three years in the US after pleading guilty to charges of racketeering. David Carruthers has spent the last three years under house arrest at a hotel in Missouri for violating American gambling laws.
Edinburgh-born Carruthers was chief executive of the massive internet sporstsbook BetOnSports. Carruthers appeared in court on Friday, where he was sentenced to 33 months after striking a deal with prosecutors.
Carruthers read a prepared statement at the hearing, apologizing for breaking US gambling regulations in a prepared statement to the hearing. He said: “I understand now that the business was operating outside the laws of the United States. I realize I made the biggest mistake of my life. I am sorry for the actions of BetOnSports and the trouble it caused.”
He was arrested by the FBI agents in July 2006 as he passed through Dallas Airport on his way to the company headquarters in Costa Rica. His wife Carol was with him at the time, and was also detained.
Carruthers is accused of breaking US law by presiding over a company that accepted illegal sports bets on the internet from American bettors.
Gambling Executive Sentenced to Prison
David Carruthers, the former chief executive of the online sports betting company Bet on Sports Online, has just been sentenced to 33 months in prison.
On Friday, Carruthers pleaded guilty racketeering conspiracy. Carruthers and 10 other individuals, including the company’s founder Gary S. Kaplan were indicted in 2006. Each was accused of violating an old federal law that forbids the placement of wagers by wire.
“I understand now that the business was operating outside the laws of the United States,” said Carruthers in a statement he read to the judge Carol during his trial.
Bet on Sports Online saw $1.25 billion in profits in 2004, with 98% of that revenue coming from bets made across the internet by players in United States.