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Ex-Online Casino CEO Freed on Bail

It took a whole month, but now David Carruthers, ex-CEO of online casino group BetonSports, is finally out of jail. Carruthers is charged with tax evasion as his online casino group took bets from American citizens over the phone or via BetonSports’ online casino, but failed to meet the appropriate tax requirements. Carruthers was freed on a $1 million bail bond that was very hard to come by, and that is why he was held in jail for a month.

His arrest, along with 22 members of the online casino group BetonSports, and the Department of Justice stand against online casino groups that are taking bets from American citizens have caused much concern in the online casino industry. Although there has been no legal change in the standing of online gambling sites, the fact that the Department of Justice is focusing on the tax issue has made many companies question their United States policy.

The case has a very high media profile, as it is one of the largest United States prosecutions of an online casino company. This legal uncertainty has led several online casino firms to change their take on the United States market, and even to stop accepting accounts that originate in the United States. There are elements in the online casino industry that think that the legal future of online gambling in American is unclear at a level that will force online gambling operators to focus on other markets.

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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