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Carruthers sentenced to 33 months in prison

8 January 2010

Former BetOnSports CEO David Carruthers was sentenced Friday to 33 months in prison for racketeering conspiracy related to BetOnSports accepting sports bets from American residents over the phone and Internet.

Carruthers is a British citizen and became the CEO of BetOnSports in 2000. He was arrested in July of 2006 by FBI agents at Dallas-Fort Worth International Airport. Carruthers was traveling from the U.K. to Costa Rica and his flight had a layover in Dallas. BetOnSports stopped operating shortly after that and has not been able to repay its customers over $16 million.

BetOnSports founder Gary Kaplan was sentenced in November to 51 months in prison for his role in founding and operating BetOnSports.

"The prosecution and conviction of Carruthers is significant to the Government's efforts at enforcement of U.S. laws against offshore internet and telephone sports wagering businesses, because Carruthers was both a foreign national and a top executive of BetOnSports", said Assistant United States Attorney Steven Holtshouser. "Previously, executives, owners and investors believed that they were immune from the reach of U.S. law enforcement; even their business plans were directly aimed at the U.S. market. 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."

"Illegal internet gaming operations continue to be areas of concern for IRS," added Toni Weirauch, Special Agent in Charge of IRS-Criminal Investigation. "With our law enforcement partners, IRS will continue to play an enforcement role in the illegal gaming industry and other illegal offshore activity."

Carruthers had reached a plea deal in April, but withdrew his guilty plea in September days before he was due to be sentenced. He then pleaded guilty again under a new agreement in October.

Carruthers sentenced to 33 months in prison is republished from Online.CasinoCity.com.
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Best of Vin Narayanan
Vin Narayanan

Vin Narayanan is the managing editor at Casino City. When he's not writing or editing stories, he likes to play Chinese Poker, Badugi, Razz and any other "non-traditional" poker game. He also thinks blackjack is his best game and loves game theory.

Before joining Casino City, Vin covered (not all at the same time) sports, politics and elections, wars, technology, celebrities and the Census for USATODAY.com, USA WEEKEND and CNN.

A proud graduate of Michigan State University, Vin can be found on most nights and weekends trying to find a way to watch the Spartans play football or basketball.

Vin Narayanan
Vin Narayanan is the managing editor at Casino City. When he's not writing or editing stories, he likes to play Chinese Poker, Badugi, Razz and any other "non-traditional" poker game. He also thinks blackjack is his best game and loves game theory.

Before joining Casino City, Vin covered (not all at the same time) sports, politics and elections, wars, technology, celebrities and the Census for USATODAY.com, USA WEEKEND and CNN.

A proud graduate of Michigan State University, Vin can be found on most nights and weekends trying to find a way to watch the Spartans play football or basketball.