BetonSports responds to "salacious hooker party" story, fires CEO

Company CEOs play down Carmen Electra, alleged hookers connection with current Board of Directors

BetonSports PLC finally released its first official statement since an indictment was handed down against the company last Monday.  The company wished to absolved itself from any connection with indicted and jailed CEO David Carruthers and the company's founder, also indicted, Gary Kaplan.

The statement explained: "This action was taken as a consequence of Mr Carruthers' continued detention by US authorities. Clearly, while he remains in the custody of the US government he is unable to perform his duties. Further, the company has been unable to speak directly with Mr Carruthers."

Betonsports also tried to distance itself from founder Gary Kaplan. In a further statement to the LSE, which avoids using Kaplan's name, the company said: "The board wish to make absolutely clear that none of the founders of the original business has any continuing role within the company....the original founder has a consulting agreement with the company under which his role is non-management related."

Referring to "media reports", that'll be Hookers and high rollers  in the Mail on Sunday, the statement says the allegations refer to before the company floated.

It says: "Since the time of its public listing, the board believes the company has operated in accordance with the standard expected of a UK Plc which is publicly quoted on AIM on the London Stock Exchange."

Gambling911.com President Christopher Costigan, who is quoted in the Mail on Sunday piece denies any knowledge of so-called hookers.

"There were girls from modeling agencies flown in to participate in the August 2002 bash as were many top celebrities," said Costigan. 

Similar to last year's Bodog Party in Vegas that incorporated a 'Brazilian' theme, BetonSports set up several rooms that featured various themes including "School Girls" and a "dominatrix" room. 

"The girls were dressed in these outfits.  That's about as far as it went."

School Girl theme room used for educational purposes?

Costigan also noted that one of its own current female reporters had been hired to dress up as the dominatrix and that there was no contact whatsoever with any of the other partygoers.

Alluding to the Mail on Sunday report may have opened up a whole new can of worms, however, as the American press had not fully picked up on the story. 

"If you think that shareholders in BetonSports were p***ed off before, I'm not sure if drawing attention to this type of story by the BetonSports Board of Directors is going to help matters much," said Costigan.

Jenny Woo, one of Gambling911.com's sizzling hot reporters claims that these types of parties are the 'standard' within the online gambling industry.

"At every industry party event I have been to, there are scantily dressed females," she said.  "Just because there are some hot models running around doesn't necessarily mean these girls are hookers."

Hookers shipped in

The London tabloid shocked readers on Sunday with its lascivious report.

"A Mail on Sunday investigation has uncovered the disturbing truth that lies beneath the company's glossy online facade: sleazy sex parties, tactics to persuade indebted punters to increase their wagers, and staff who work 18-hour days, seven days a week.

"BoS courted high rollers with a hedonistic annual party at its spa and health club in Costa Rica, where champagne flowed and glamorous and obliging women were flown in from the US to cater for guests' most outrageous whims.

"One acquaintance of Carruthers, who did not want to be named, said: "I went to the party in 2002. It was outlandish. The company paid for big clients to fly in from the US. They were picked up at the airport in a fleet of people carriers and brought to a red carpet at the door of the venue, where they were greeted by David. He was very smooth, wearing one of his finely tailored suits and trying to fit in."

"Guests, he said, included Demi Moore's toyboy - now her husband - Ashton Kutcher, who apparently flirted with two redheads wearing tight-fitting and low-cut jeans.

"The owner of BoS, Gary Kaplan - nicknamed G - had shipped in hookers from the US for players who didn't want to be serviced by local Spanish-speaking girls,' said the acquaintance.

"They had a girl for every perversion. One was dressed as a police officer, others in frilly undies. The spa's swimming pool was filled with foam and the girls took part in a bikini contest. Then they danced with the guests."

Carmen Electra, Ashton Kutcher, Pussy Cat Dolls flown in

If hookers were in fact the appetizer, celebrities the likes of Ashton Kutcher, Carmen Electra and the Pussy Cat Dolls were most certainly the main course. 

Electra was actually the "billed" celebrity and she fronted what is today one of the music industry's premiere female recording acts.  At the time the Pussy Cat Dolls performed in venues as a sort of burlesque act.

Kutcher was a guest at the party and intermingled with others including two twin girls with very long hair.  He could not take his eyes off of them.

Major media outlets were also flown in.  These included E! Entertainment, which filmed a "Wild On!" segment with some of the partygoers and celebrities in attendance. 

All guests were put up in Costa Rica's most exclusive hotels: The San Jose Marriott and the Real (pronounced ree-al) Intercontinental. 

"I have been to a lot of industry related parties and honestly cannot remember anything as spectacular as this one," said Costigan.  "Nearly everyone in the (online gambling) industry who attended seem to agree."

Related Subject Matter:

Online Gambling Industry (Blog)
Jenny Woo (Blog)

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Payton O'Brien, www.gambling911.com

Originally published July 25, 2006 11:47 am EDT