Antigua Helping to Settle Online Payment Debts of BetonSports.....But....

The Antiguan government has stepped in to do what Costa Rican officials have not done, assist in the collection of debts owed to BetonSports in order to pay both customers and employees.

There are reports that certain payment processors have withheld funds from BetonSports.  But as Gambling911.com has already reported, publishers and other advertising venues should not be considered among those owing money to BetonSports. 

These were contracts entered into prior to BetonSports closure.  In some cases, print publications and conferences were put together using funds provided by BetonSports.  These are also the most likely venues to have had written contracts with the online gambling firm, which voluntarily shut its doors in July following a US indictment and the apprehension of its then CEO, David Carruthers.

BetonSports should have - at all times - had ample money to pay out customers on demand, at least in regard to deposited funds.  Up to this point, no monies have been received by customers and there are millions of dollars owed. 

A perfect example of the catch 22 here would be if the case of Casino Affiliate Convention in Las Vegas this past fall.  Marc Lesnick, the conference organizer, incorporates a strict policy regarding refunds. 

In the case of BetonSports, that company committed to a premium sponsorship, paying cash upfront well in advance.  The premium sponsorship was essential in funding a huge chunk of the conference and Lesnick would not have been able to obtain a new sponsor under such short notice.

In fact, it can be argued that BetonSports abrupt closure could have resulted in nearly half of the committed exhibitors being scared off.

Some online ad venues have expressed concerns over BetonSports intentions regarding the collection of such funds, insisting that they (the ad venues) were not guaranteed that this money would be used to pay out players.

"If I knew for sure that this money would be going to players I might consider sending the money back but I don't see this happening," said one online sports handicapping service that accepted monies from BetonSports.

Because Antiguan authorities have stepped in, there is a chance that some monies sent to ad venues could be recouped.  But there is several million owed to customers. 

Reports from those close to BetonSports suggest that there was over a million dollars of the company's funds still sitting with payment processors.  This is an avenue that Antigua hopefully will make some headway with.

Antigua's efforts are worth noting but authorities there need to be educated on who is really to blame for this default....That would be the BetonSports Board of Directors and their mismanagement of funds. 

We have cited many examples of online gambling firms that closed off to the US market and paid out funds in an expedient (or at least organized) fashion.  Antigua need only look at their newest white knights, Bodog, and the company they acquired, BetWWTS (BetCorp), as a shining example of how this industry should truly work.

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Christopher Costigan, Gambling911.com

Originally published February 21, 2007 10:00 am ET