BetonSports Founder Gary Kaplan Pleads Not Guilty

ST. LOUIS (Reuters) - The founder of the London online gambling operation BETonSPORTS Plc pleaded not guilty on Monday to racketeering and other charges.

Gary Stephen Kaplan, who was arrested in March in the Dominican Republic, entered the plea in an appearance before Magistrate Judge Mary Ann Medler of the U.S. District Court.

She ordered him to remain in custody pending a May 25 detention hearing that may determine if he can be released on bond.

Kaplan was indicted in June of 2006 by a federal grand jury in Missouri which accused him and 10 others of engaging in racketeering, conspiracy and fraud arising from the operation of Costa Rica-based Internet gambling businesses.

BETonSPORTS, which once traded on the London Stock Exchange, was forced in August 2006 to close down its U.S. business which accounted for 95 percent of its profits.

The U.S. crackdown on online gaming began last July with the arrest of BETonSPORTS Chief Executive David Carruthers during a layover at a Texas airport.

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Originally published May 15, 2007 9:34 am ET