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Legal Trouble for Online Casino Operator Far from Over

The legal commotion surrounding the online casino operator BetonSports does not seem to be over soon. Although the online casino group has ceased all of its United States businesses, and does not accept American players or accounts, the Department of Justice decided to go ahead with its initial intention to prosecute the online casino operators. BetonSports’s future is not clear. Many of its facilities have been closed and hundreds of employees have been let go. With prosecution ahead, no one really knows what will be the outcome of this story.

In an unrelated decision, David Carruthers, the former Chief Executive of BetonSports, managed to approve conditions for his release on bail through his new lawyer, Attorney Scott Rosenblum. The online casino CEO has been in custody since July 16 after being arrested for avoiding taxes. Carruthers allegedly ran an online casino business that took bets from American citizens but did not pay taxes accordingly, and that was the reason for his arrest. BetonSports took bets from United States citizens by phone and through an online casino site that it operated.

Although the charges are not against running an online casino gambling business, this whole legal mess is far from beneficial to the online casino industry. Headlines associating online casino operators with criminal acts present a wrongful image of the industry and hurt online operator’s business. Many elements that are hoping for an anti online gambling legislation believe that such publicity and the fact that it translates into financial loses is the way to hurt the online gambling community.

OCA News Editor

Jenny McKinnley is OCA’s financial correspondent. After spending years on the trading floor in both NY and London, she offers insight from the inside out on world financial news and events.

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