Welcome Guest
Log In | Register )
You last visited December 4, 2016, 5:20 pm
All times shown are
Eastern Time (GMT-5:00)

BETonSPORTS Shutting U.S. Gambling Sites

Online GamblingOnline Gambling: BETonSPORTS Shutting U.S. Gambling Sites

BetOnSports PLC, the British-based Internet gambling company that has been charged with fraud and racketeering in the United States, said Friday it will shut down its services for American gamblers.

BETonSPORTS said it plans to stop operating in Costa Rica and Antigua from where it accepted wagers from tens of thousands of customers in the United States as soon as possible following a U.S. federal court order for the company to stop taking bets from the country.

Shares in the company were temporarily suspended on the London Stock Exchange.

The company said the decision would allow it to gain more sales from outside the United States, in Europe and Asia, to help it pay creditors.

However, Wayne Brown, an analyst at Altium said the decision was the "worst case scenario" that effectively spelled the end of the company, which currently generates almost three-quarters of its business in the United States.

Brown said an attempt to focus on the company's Asian operations was unlikely to succeed.

"Asia provides around 5 percent of profits and is very small in the scheme of things," he said.

Internet betting is illegal throughout the United States and authorities there have targeted BetOnSports in a clampdown.

Last month, the company's former chief executive David Carruthers was arrested at a Texas airport and a 22-count indictment was unveiled in St. Louis, Mo., alleging fraud and racketeering against the company. The federal court also ordered the company to stop taking U.S. bets and return deposits paid by American bettors.

In a statement issued to the London Stock Exchange, the board of directors said Friday that "after thoroughly reviewing possible alternative business plans, they no longer consider the U.S.-facing operations of the company ... to be viable."

The company also pledged to refund the deposits of its U.S.-based customers, many of whom have uncollected winnings that must be transferred through third-party agencies based outside the United States.

The directors said they wanted to refund all customers' money, but cautioned this would prove difficult and "will depend upon the company's ability to persuade banks and cash processors to release its funds."

AP

We'd love to see your comments here!  Register for a FREE membership — it takes just a few moments — and you'll be able to post comments here and on any of our forums. If you're already a member, you can Log In to post a comment.

3 comments. Last comment 10 years ago by orangeman.
Page 1 of 1

United States
Member #16612
June 2, 2005
3493 Posts
Offline
Posted: August 22, 2006, 3:09 pm - IP Logged

How much fraud and rackettering BetOnSports PLC did? I hope it shut it down.

    LOTTOMIKE's avatar - cash money.jpg
    Tennessee
    United States
    Member #7853
    October 15, 2004
    11338 Posts
    Offline
    Posted: August 25, 2006, 12:17 am - IP Logged

    sometimes i wonder about you.do you know this is a lottery website?  do you know most people here gamble?  do you know a lot of people gamble online also?  your going against the grain with your answers to these topics.

      Avatar
      Amarillo/Austin
      United States
      Member #1424
      April 25, 2003
      696 Posts
      Offline
      Posted: August 25, 2006, 1:04 am - IP Logged

      I agree with Lottomike.  What kind of idiot would waste his time lurking around a site like Lottery Post unless he just likes to shake his finger at people. 

      Orangeman              No No